VAT / VIES registration
For our clients who are planning to run their business through a Bulgarian company we provide two methods of valid registration pursuant to the provisions of the VAT Act
- The first one consists in buying any of our VAT registered in advance companies. This will spare you the time necessary for the administrative procedure for the VAT registering of a new company
- The second one includes the registration of your new company under the VAT Act. The procedure takes about 3 days. You will need to execute a power of attorney for us, which we will use to perform the procedure – and our specialists will take care of the rest.
| Service | Price in EUR |
|---|---|
| VAT registration | 350 |
| Posting an apostille on the VAT certificate | 50 |
The term for registration for VAT is up to 3 weeks.
The most significant advantages of VAT registration:
- A valid VAT number with which you can take advantage of the benefits of trade in EU
- 0% VAT for your sales to partners form other EU member states
- VAT recovery for your costs incurred in Bulgaria
What is VAT
With the accession of Bulgaria to the European Union and the removal of customs control on internal borders with neighbouring member states, as of 1 January 2007, it has been possible to have free movement of capitals, services, people and goods and capitals within the Community.
The general rule is that VAT charging in intra-community supply is in the country of use of the goods, which means that for the seller this supply is charged with 0% rate, and the buyer levies tax according to the standard rate in their member state. An important condition for this mechanism to be applied is that both vendors are registered entities for VAT purposes in their member state and to have valid VAT numbers.
The taxation administration of each EU member state maintains electronic database of vendors who are registered for VAT purposes and each vendor can check the validity of the Vat number of their contractor in it.
Is it a good idea for me to have VAT registration?
In order to do business in Europe you have to have a valid VAT number. This VAT ID is given to all European companies. Without this Vat ID you are not allowed to do any business in Europe. One of the advantages of VAT registration is related to the easier inclusion in economic turnover. This applies only to the cases when both parties have VAT registration. Then, through the VAT recovery procedure, (tax credit), recipients can recover value added tax which they paid for the goods sold to them by the supplier.
The supplier who has VAT registration is capable of offering 20% (VAT size) lower price than their competitors without VAT registration.
We have to mention that actually one of the greatest advantages of VAT registration is related to the so called VAT recovery. The benefit consists in the fact that through recovery of VAT paid costs are reduced. Lower prices can be maintained by using this method above all. The meaning of the process is that registered companies charge VAT to the customers they work with for the goods and services offered to them, while actually they are bit subject of VAT charging for the gods they buy.
In this way, the “tax credit” mentioned above is obtained. In fact, registered accompanies reduce their costs after VAT recovery.
Companies with registration under the VAT Act have the following obligations:
- The existence of VAT registration must be related to properly kept accounting and trade books. One of the reasons for this is that the Value Added Tax obligates registered entities to keep such accounting reporting.
- Further, it has to declare its output and input supplies through filing VAT reports (e.g. VAT ledgers, VAT return, VIES declaration) with the tax authorities on a monthly basis by the 14th of the month following the month for which the reports are due.
- If the monthly result of the company is VAT for payment (i.e. when the output VAT is higher than the input VAT) it is due within the same deadline as the one for filing of the reports.