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How to Sell Services From Bulgaria With 0% VAT to Foreign Clients – 2025 Guide
Today, we’ll explain how you can sell services from Bulgaria to foreign clients with 0% VAT – legally and in compliance with EU rules.
Understanding the 0% VAT Rule
In Bulgaria, if you provide certain services to clients outside Bulgaria, you may be able to apply 0% VAT.
This is not a “tax loophole” – it’s a standard EU VAT rule for cross-border services.
The key factor is where your client is established and the type of service you provide.
When Can You Apply 0% VAT?
To EU Businesses – If your client is a VAT-registered company in another EU country:
- You issue an invoice without VAT, but include the note “Reverse charge – Article 21, Bulgarian VAT Act”.
- You must check and record their VAT number in the EU VIES system.
To Non-EU Clients – If your client is based outside the EU:
- Most business services are considered supplied where the customer is located, so Bulgarian VAT does not apply.
- You issue an invoice without VAT and indicate “Place of supply outside the EU – Article 21”.
Important Compliance Steps
- Verify Client Details – Always check VAT numbers for EU clients in VIES and keep proof.
- Report in VIES Declaration – For EU clients, submit a monthly VIES return to the National Revenue Agency.
- Keep Proper Documentation – Contracts, proof of client location, and communications may be needed in case of audit.
Services That Qualify
Common examples include:
- IT and software development
- Consulting and professional services
- Marketing and design services
- Online training and digital services
Exceptions exist – for example, some services related to real estate or events may still be taxed in Bulgaria.
Selling services with 0% VAT is perfectly legal when done right – and it can make your business more competitive internationally. If you want to set this up for your company, we can help you with VAT registration, compliance, and reporting.
If you want tailored advice for your business, get in touch with us at ASB Accounting Services Bulgaria.
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