All companies are obliged to submit to National Revenue Agency an Annual Tax Return till 31st March and to declare in Commercial Register an Annual Financial Report till 30 June of the next year, for activity in the previous year. It is advisable to attend to these obligations, because there is a fines for not meeting the deadline between 500 and 3 000 BGN.
1. When you receive Incomes from company, situated in a Non EU Country – you must charge 0 % VAT in the invoices that you issue.
3. When you receive Incomes from company not registered for VAT, situated in an EU Country – you must charge 20% VAT in the invoices that you issue.
4. When you receive Incomes from an individual, situated in a Non EU Country – you must charge 20 % VAT that you issue.
5. When you receive incomes from an individual (THAT HAS VAT REGISTRATION) situated in an EU Country – you must charge 0 % VAT that you issue.
6. Incomes from an individual (THAT DOES NOT HAVE REGISTRATION) situated in an EU Country – you must charge 20 % VAT in the invoices that you issue.
Companies which accounted representative expenses are subject to tax 10%.
Representative expenses are considered:
- Costs associated with the activity of the company for example: organizing business events, buying food and drinks, corporate event, buying flowers and gifts, and more.
- Social costs for the staff and persons employed on contract management and control for example additional voluntary insurance, food vouchers and more.
- Costs related to the exploitation of vehicles for carrying out management activities.
According to Corporate Income Tax Act representative expenses are taxed at 10% on the total value of such tax shall be declared and paid in each financial year of the company.
It is important to note that the organization of congresses, conferences and other events of this type do not fall under the tax rules.