Discusses pricing formula and other fees, value-added tax (VAT), etc.
Last Published: 9/16/2019
Bulgaria’s relatively low per capita income, and low-to-medium purchasing power means that consumers are price sensitive, but are willing to spend more for high quality products. As an emerging economy, with emerging middle- and upper-classes, Bulgarians do have a propensity for expensive name-brand cars, accessories and clothing.

The standard Value Added Tax (VAT) rate in Bulgaria is 20 percent. There is a 9 percent, reduced VAT rate for hotel accommodations, and other goods and services. See Deloitte’s European VAT Refund Guide 2018, Bulgaria (on page 18):
https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-european-vat-refund-guide.pdf   

VAT Registration

Bulgaria follows the EU VAT Directives. Thus, if a company is supplying goods or services within the EU, the company may be required to register for VAT.
 
  • Resident businesses: Depending on annual revenues, resident businesses, or businesses  with a permanent establishment in a country, must register for VAT.  If the turnover of VAT taxable goods and services supplied within a specific jurisdiction over a 12 month period is more than the relevant registration threshold a company must register for VAT. In Bulgaria the mandatory registration is approximately USD 27,500 of taxable supplies for the last 12 consecutive months.
  • Non-resident businesses: In most EU states there is no VAT registration threshold for non-resident businesses. This means as soon as a company starts trading, and the good or service is a taxable supply, a company should be VAT registered in that jurisdiction.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.