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VAT Rates in Bulgaria

Updated Bulgarian VAT rate tables

In Bulgaria, the majority of goods and services are subject to Value Added Tax (VAT), making it a crucial consideration for both legal entities and tax-paying individuals who are obliged to register for it.

The standard VAT rate in Bulgaria is set at 20%, while a reduced rate of 9% is applied to certain eligible categories. Additionally, there are specific discounts and exemptions available, which are designed to alleviate the tax burden on particular sectors or items.

These variances in VAT rates and the availability of discounts and exemptions are vital for businesses and individuals to understand, as they can significantly impact financial planning and compliance with Bulgarian tax regulations. Read more regarding VAT rates in Bulgaria in our comprehensive guide below.

VAT-country-guide-Bulgaria

VAT Rates in Bulgaria

Standard VAT rate
A standard VAT (Value-Added Tax) rate is each country’s most typical VAT rate applied to goods and services. It is applied to the majority of goods and services, with some exceptions, such as essential items or other specific goods or services that may have a reduced rate and are presented below.
Rate Good or Services
20% All goods or services not included in the reduced rates table below
Reduced VAT rates
Certain goods and services are eligible for reduced VAT rates as essential items or other specific goods or services that may have a reduced rate and are presented below.
Rate Good or Services
9% “Reduced rate”
  Accommodation services provided by hotels and similar establishments, which includes vacation accommodation and renting of spaces for camping and caravan sites (including single tourist services).
  Sales of books, which include textbooks and study sets, in both physical or electronic form.
  Specific items for babies.
0% Zero rated products
  Export transactions that involve goods leaving the EU;
  Intra-Community supplies, but only if the receiving party is a taxable person who is liable to pay VAT on the corresponding intra-Community acquisition of such goods (Note: further conditions apply);
  Supplies related to international transport, such as the transportation of goods and passengers by air or sea for commercial purposes, except for vessels used for sports, pleasure, and private purposes.
  Services that involve work on goods, such as treatment, processing, or repair, if the goods are imported specifically for that work and will be transported out of the EU once the work is complete.
  Supplies of non-Community goods that are placed under a special customs regime, such as temporary warehousing and inward processing.
  The supply of non-investment gold to central banks.
  Supplies that are connected to duty-free trade.
  Services provided by agents, brokers, and other intermediaries who act in the name of and on behalf of a third person in relation to any of the supplies mentioned above.
Exempt From VAT
  Healthcare, social security, welfare, education, sports, culture, religion, financial services, insurance, gambling, universal postal services, nonprofit transactions, and limited transfers of title over land and buildings
  For transfers of title over land and buildings is subject to limitations as set out in Article 45(5) of the VAT Law.
  Supplies of investment gold and related services by agents are generally exempt from VAT under Article 160 of the Bulgarian VAT Law.


 

 

 

Various countries announced short-term adjustments to their VAT rates in response to COVID-19. This resulted in reductions to the VAT rates on products and services sold by businesses that were particularly hit hard by the pandemic’s economic fallout, such as the hospitality sector. To learn more about the implications of COVID-19 in Bulgaria, please visit our news section by clicking here. 

 

 

Last Updated: 18/10/2023

Disclaimer

The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax

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