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How to Issue Invoices Correctly Under Bulgarian Tax Law
If you operate a business in Bulgaria, issuing invoices correctly is essential for compliance with Bulgarian tax law. In this guide, you’ll learn the key requirements to avoid penalties and ensure smooth operations.
Mandatory Invoice Information
Bulgarian VAT law requires every invoice to contain specific details. Whether your company is VAT-registered or not, you must include:
✅ Invoice Number – Unique, sequential number for tracking.
✅ Date of Issue – The date the invoice is created.
✅ Supplier Details – Business name, address, VAT number (if VAT-registered).
✅ Customer Details – Name, address, VAT number (if applicable).
✅ Description of Goods/Services – Clear breakdown of what is being sold.
✅ Quantity & Unit Price – Number of items/services and their price.
✅ Total Amount – The full invoice amount, before and after VAT (if applicable).
✅ VAT Amount & Rate – Specify the rate and amount if VAT is charged.
✅ Currency & Payment Terms – Currency used and payment deadline.
VAT Considerations
- VAT-registered businesses must apply 20% VAT on taxable supplies, except for zero-rated or exempt transactions.
- Intra-community supplies to EU businesses with a valid VAT number are zero-rated, but the buyer must apply the reverse charge mechanism.
- When invoicing non-EU clients, VAT treatment depends on place-of-supply rules—most B2B services provided outside the EU are VAT-exempt.
- If an invoice includes 0% VAT, the legal basis for the exemption must be clearly stated, referencing the Bulgarian VAT Act.
E-Invoicing & Digital Compliance
- Electronic invoices are allowed with the customer’s consent and must be stored securely for at least 10 years.
- The invoice should be in Bulgarian or accompanied by a Bulgarian translation.
- If issuing invoices in foreign currencies, the VAT amount must also be displayed in Bulgarian Lev (BGN).
Deadlines & Record-Keeping
- Invoices must be issued within 5 days of the taxable event.
- Businesses must keep all invoices for at least 10 years for tax audit purposes.
Common Mistakes to Avoid
❌ Missing or incorrect VAT numbers – Always verify VAT numbers for intra-EU transactions.
❌ Incorrect VAT rate applied – Ensure you’re using the right rate for your service/product.
❌ Not issuing an invoice on time – Late issuance can lead to penalties.
❌ Not referencing the legal basis for 0% VAT – This is a common mistake that can trigger tax audits.
Issuing invoices correctly ensures compliance with Bulgarian tax regulations and prevents unnecessary fines. If you’re unsure, consulting a professional accountant can save you time and trouble.
📌 Need help with invoicing or VAT compliance? Contact ASB Accounting Services Bulgaria today!
This information is provided for general guidance only and does not constitute tax, accounting, or legal advice. Each situation requires individual review.