FAQ

FREQUENTLY ASKED QUESTIONS

1: Is it possible for a Bulgarian company to exercise activity in another EU country?
2: Is it possible for a Bulgarian company to exercise activity on the territory of another EU country, applying the Bulgarian fiscal legislation?
3: Is there any possibility for a Bulgarian company to exercise activity on the territory of another EU country?
4: Is it mandatory for a Bulgarian company which purchases goods from EU countries to be registered under the VAT Act in Bulgaria?
5: What is the difference between the usual registration /voluntary or mandatory/ pursuant to the VAT Act and the mandatory registration because of certain revenue reached due to intra-community sales of goods (within the limits of the EU)?
6: Is it allowed for a Bulgarian company to purchase goods from one EU country and to sell to another, without having to physically enter the goods in Bulgaria?
7: Is it allowed for a Bulgarian company to purchase goods from an EU country and to sell them in the same country, using its personal VAT number?
8: Is it possible for a Bulgarian company to realize intra-community sales using companies which are not registered pursuant to the VAT Act in their own countries?
9: Is it possible for a Bulgarian company to receive services delivered by companies in EU countries without having been registered pursuant to the VAT Act?
10: Is it possible for a Bulgarian company to offer services to companies within the EU?
11: Is it possible for a Bulgarian company to deliver services to EU companies without having been registered pursuant to the VAT Act?
12: Is it possible for a Bulgarian company to sell goods to EU parties which have not been registered pursuant to the VAT?
13: Is it possible for a Bulgarian company to purchase goods from third country /outside the EU/ and to sell them to an EU company without having to enter the goods through the Bulgarian border?
14: Is it possible for a Bulgarian company to function without having to sign labor or civil contracts with any personnel?
15: How is it possible for the owner to work in his/her own company without being on a labor contract?
16: Is it mandatory in Bulgaria for the manager to deposit securities as self-employed?
17: What is the minimal amount which is deposited monthly in relation to the securities of the manager when he/she is registered as self-employed?
18: What is the minimal amount which is deposited monthly in relation to the securities of the manager of the company?
19: Is it possible for the Bulgarian company to exercise big amount of activity but not to have any personnel on labor or civil contracts?

1: Is it possible for a Bulgarian company to exercise activity in another EU country?

Yes, if the company has been registered in the respective country and the transactions are taxable pursuant to the local legislation.

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2: Is it possible for a Bulgarian company to exercise activity on the territory of another EU country, applying the Bulgarian fiscal legislation?

No, it is not possible. Any activity which is exercised in a foreign country is regulated pursuant to the local fiscal legislation.

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3: Is there any possibility for a Bulgarian company to exercise activity on the territory of another EU country?

Yes, if it establishes a branch or subsidiary in the respective country.

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4: Is it mandatory for a Bulgarian company which purchases goods from EU countries to be registered under the VAT Act in Bulgaria?

No, it is not mandatory, but once the company reaches EUR 10 000of purchased goods from the EU, the Bulgarian company is obliged to register under the VAT Act.

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5: What is the difference between the usual registration /voluntary or mandatory/ pursuant to the VAT Act and the mandatory registration because of certain revenue reached due to intra-community sales of goods (within the limits of the EU)?

In the event of mandatory registration due to intra-community sales there are some restrictions related to the right to fiscal credit and it poses some limitations from a fiscal point of view.

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6: Is it allowed for a Bulgarian company to purchase goods from one EU country and to sell to another, without having to physically enter the goods in Bulgaria?

Yes, it is allowed. For these three-party operations it is important for the three companies in the three different countries – EU members, to be registered pursuant to the VAT.

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7: Is it allowed for a Bulgarian company to purchase goods from an EU country and to sell them in the same country, using its personal VAT number?

No, it is not allowed. This is an activity which is realized on the territory of a foreign country and it is taxable and regulated pursuant to the foreign legislation.

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8: Is it possible for a Bulgarian company to realize intra-community sales using companies which are not registered pursuant to the VAT Act in their own countries?

Yes, it is possible, but this is not considered intra-community sale. In order to have intra-community sales, the company which sells should be registered locally pursuant to the VAT Act.

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9: Is it possible for a Bulgarian company to receive services delivered by companies in EU countries without having been registered pursuant to the VAT Act?

No, it is not possible. A mandatory VAT registration is required so that such services could be received.

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10: Is it possible for a Bulgarian company to offer services to companies within the EU?

Yes, only if it is registered pursuant to the VAT Act in Bulgaria and if the services are not physically delivered or realized on the territory of the foreign country.

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11: Is it possible for a Bulgarian company to deliver services to EU companies without having been registered pursuant to the VAT Act?

No, it is not possible. A mandatory VAT registration in Bulgaria is required.

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12: Is it possible for a Bulgarian company to sell goods to EU parties which have not been registered pursuant to the VAT?

Yes, it is possible. In this case the VAT is included in the price put once a certain volume is reached the Bulgarian company is obliged to register in the foreign country pursuant to the local legislation and to acquire local VAT number. For each country the volume of sales is different. Upon registration pursuant to a local VAT Act, the mode of work is usually changed and it becomes more complicated.

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13: Is it possible for a Bulgarian company to purchase goods from third country /outside the EU/ and to sell them to an EU company without having to enter the goods through the Bulgarian border?

Yes, it is possible. This is an option of a three-party operation. Here the cases are similar to those of the distant sales.

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14: Is it possible for a Bulgarian company to function without having to sign labor or civil contracts with any personnel?

Yes, it is possible only if the owner works in the company.

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15: How is it possible for the owner to work in his/her own company without being on a labor contract?

It is possible if he/she signs Administration contract or if he/she registers as self-employed.

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16: Is it mandatory in Bulgaria for the manager to deposit securities as self-employed?

No, it is not mandatory if the owner/manager pays securities for the same reason in his/her own country.

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17: What is the minimal amount which is deposited monthly in relation to the securities of the manager when he/she is registered as self-employed?

The installments are deposited on a minimum of EUR 210 and the securities which should be paid monthly are approximately EUR 50.

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18: What is the minimal amount which is deposited monthly in relation to the securities of the manager of the company?

The installment is deposited on no less than the minimal revenue depending on the activity of the company and it normally varies between EUR 200 and EUR 700. The securities are approximately 40% on the amount for which securities are paid.

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19: Is it possible for the Bulgarian company to exercise big amount of activity but not to have any personnel on labor or civil contracts?

No, this is not normal. With respect to each activity, depending on the volume, the existence of personnel is required.

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