Registration of the company under the VAT Act
 

When is registration under the Value Added Tax Act necessary?

Any individual or firm (company) may register under the VAT Act (VATA). There are two major types of registrations provided for by law:

  • Compulsory VATA registration – all persons should register compulsory, if their turnover has exceeded BGN 50 000 during the last 12 months. It is not obligatory for this period of time to have passed in order to file a registration application. For example, a newly established company that generates turnover higher than BGN 50 000 during the first month of its existence, should file VATA registration application forthwith. Additional information providing clarifications as to the compulsory registration is available here;
  • Voluntary VATA registration – even if the compulsory registration terms and conditions are not in place, you have the right to register under VATA voluntarily – at your own initiative. The voluntary VATA registration benefits you when you purchase goods and / or services from persons that are also VATA registered. In this case you may receive a VAT refund for the tax paid upon the purchase of the goods / service or you can deduct it against your VATA payables. Additional information on the voluntary registration is available here.

 

What is the registration procedure?

In order to initiate the registration procedure, you have to file a registration application in a standard form to the  competent territorial directorate of the National revenue Agency (NRA). The application template is available at the website of the NRA. The filing of the application is free of charge. The following documents are attached to the registration application:

  • Schedule of the taxable turnover by month for the last 12 months preceding the current month, and when the turnover is reached for a period shorter than two consecutive months, including the current month. The schedule also includes the taxable turnover for the current month up to the date when the turnover of BGN 50 000 was reached;
  • Schedule of the total amount of taxable intra-Community acquisitions for the current year, excluding the acquisition of new motor vehicles and goods subject to excise duty.

The filing of the application may be performed electronically. To do that you need a qualified electronic signature (QES) or personal identification code (PIC), which you may receive free of charge by the territorial division of the NRA at your permanent address.

If the conditions for compulsory registration exist and you do not file an application, you will be registered by compulsion at the initiative of the NRA and you will be subject to material sanction amounting between BGN 500 and BGN 50 000.

After the registration, you will be receive a registration act, as well as a registration certificate. If you lose, damage or destroy the certificate, you are obliged to notify the respective territorial directorate of the NRA and a duplicate copy will be issued to you.

 

Important to know
Important to know

It is important to know that as of the date of your VATA registration you are obliged to file monthly VAT returns to the NRA, purchase and sale ledgers. Depending on the result, there may be a monthly obligation to pay VAT or a right to receive refund. The monthly returns are filed electronically.

 

For more information
For more information

Additional information is available on the website of the NRA here and here, as well as on the website of the Administrative Register.

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Ministry of Economy
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phone: +359 2 940 7001

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Operational Programme
Contacts: 8, Slavyanska Str. Sofia 1000, Bulgaria tel: +359 2 940 7001 e-mail: e-docs@mi.government.bg
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