Welcome to ASB Accounting Services Bulgaria –your trusted partner for accounting, tax, and business services in Bulgaria!
Thank you for watching! Don’t forget to like, subscribe, and hit the bell button for more tips on doing business in Bulgaria!
How to Issue Invoices Correctly Under Bulgarian Tax Law
If you’re doing business in Bulgaria, issuing invoices correctly is crucial for compliance with Bulgarian tax law. In this video, I’ll explain the key requirements for issuing invoices to avoid penalties and ensure smooth business operations.
Mandatory Invoice Information
- Under Bulgarian VAT law, every invoice must contain specific details, whether you’re a VAT-registered company or not. Here’s what you need to 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 individual price.
- Total Amount – The full invoice amount, before and after VAT (if applicable).
- VAT Amount & Rate – If VAT is charged, specify the rate and amount.
- Currency & Payment Terms – Currency used and payment deadline.
VAT Considerations
- If your business is VAT-registered, you must charge 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 for VAT, but the buyer must apply the reverse charge mechanism.
- Issuing invoices to non-EU clients? VAT depends on the place of supply rules—most B2B services are VAT-exempt when provided outside the EU.
- If your invoice includes 0% VAT, you are required to state the legal basis for applying the exemption, referencing the relevant article of the Bulgarian VAT Act.
E-Invoicing & Digital Compliance
- Electronic invoices are allowed in Bulgaria with the customer’s consent and must be stored securely for at least 10 years.
- The invoice should be in Bulgarian or have a Bulgarian translation
- If issuing invoices in foreign currencies, the VAT amount must also be shown in Bulgarian Lev (BGN).
Deadlines & Record-Keeping
- Invoices should be issued within 5 days of the taxable event.
- All invoices must be recorded and kept for at least 10 years for tax audits.
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 avoids unnecessary fines. If you have any doubts, consulting a professional accountant can save you trouble in the long run.
📌 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.