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How to avoid common tax mistakes when doing business in Bulgaria
Today we’ll help you avoid common tax mistakes when doing business in Bulgaria, saving you time, money and stress.
Many foreign businesses in Bulgaria overlook the importance of a VAT registration. If your turnover exceeds 166,000 level which is around €85,000 in 12 month period, you must register for VAT. Missing this deadline can result in penalties. Additionally, VAT registration is mandatory if you provide or receive services from any EU registered company, for example Google and Facebook advertising. So monitor your revenue closely and seek professional help to ensure timely registration.
- Other common mistake is claiming non deductible expenses. Not all business costs are tax deductible in Bulgaria. Keep clear record and consult an accountant to ensure proper classification. The corporate tax returns are due by 30 June each year.
- Late finding leads to fines and interest charges. Set reminders and rely on professional accounting services to stay compliant. If you hire employees or work as a manager of your company, you must pay Social Security contribution.
- Failing to do so can lead to significant penalties. Ensure accurate payroll and timely payments. Bulgaria also has treaties with many countries to avoid double taxation. Not applying them can mean more taxes than necessary.
Consult with a tax expert to take advantage of the applicable tax treaties. At ASB Accounting Services Bulgaria, we help foreign businesses navigate Bulgaria’s tax system with confidence. Contact us for expert accounting and tax services.