Bulgaria SME rules

SME Scheme – General features

Exemption

It is possible to opt for the SME scheme in Bulgaria.

Transactions excluded from the SME scheme

The following transactions are excluded from the SME scheme: 

• Exempt cross-border supplies of new means of transport made from one Member State to another.
• Supply of services taxable under the reverse charge mechanism,
• The supply taxable on national territory of new buildings or part thereof, land adjoining them, as well as the establishment and transfer of other property rights thereon. The transfer of ownership or the establishment or transfer of a building right on a regulated plot of land,
• Importation of goods,
• Intra-Community acquisitions of goods

National annual threshold

The information on the national annual threshold is available on TEDB.
 

Domestic SME scheme

Simplified VAT obligations

A small enterprise established in Bulgaria who applies the SME scheme in Bulgaria only (domestic SME scheme) is released from the following VAT obligations: 

• to state the beginning of its activity
• to VAT register
• to submit periodical VAT returns

•  

   

Cross-border SME scheme

The cross-border SME scheme applies in the following situation(s):

1. The small enterprise applies the SME scheme in other Member States than the Member State of establishment, or;
2. The small enterprise applies the SME scheme both in the Member State of establishment and in other Member State(s).

Simplified VAT obligations

The VAT registration in each Member State where the small enterprise applies the SME scheme is replaced by a single prior notification to be submitted in the Member State of establishment. 

The periodical VAT returns are replaced by a single quarterly report for all Member States to be submitted in the Member State of establishment. 

Currency

The values of supplies of goods and services to indicate in the prior notification, in the update to a prior notification and in the quarterly reports must be in EUR. 

Way of submission

The prior notification, the update to a prior notification and the quarterly reports should be submitted by electronic means on this page.

Additional simplified VAT obligations

Exempt small enterprises applying the cross-border SME scheme in Bulgaria are released from the following VAT obligations:

• to issue invoices for B2C supplies except upon request by the recipient,
• to issue full invoices for B2B supplies

• to keep accounts

   

Loss of simplified VAT obligations

Non-compliant small enterprises may be required: 

• to VAT register
• to submit periodical VAT returns

Transitional period

Bulgaria does not apply any transitional period in case the national annual threshold is exceeded during the current calendar year.

Examples of application of transitional periods are given in the Explanatory Notes. 

Quarantine

Quarantine period in case of exclusion from the SME scheme

Small enterprises excluded from the SME scheme in Bulgaria are not able to benefit from that exemption during a quarantine period. 

You can consult the quarantine period applicable in Bulgaria on TEDB database.

Practical examples on the application of the quarantine period and its consequences are available in the Explanatory Notes.

Quarantine period in case of voluntary departure from the SME scheme

Small enterprises who decide to voluntarily leave the SME scheme in Bulgaria are not able to benefit from that exemption during a quarantine period. You can consult the quarantine period applicable in Bulgaria on TEDB database. 

Appeals

Domestic SME scheme

Appeals should be addressed to your Member State of establishment (MSEST).

Cross-border SME scheme

Member State of establishment (MSEST)

Appeals related to the following topics should be addressed to MSEST:

• Union annual turnover
• Prior notification, correction and update to a prior notification
• Quarterly reports and correction of a quarterly report
• Exclusion for exceeding the Union annual turnover

Member State of exemption (MSEXE)

Appeals related to the following topics should be addressed to MSEXE:

• National annual turnover
• Denial to access the cross-border SME scheme in MSEXE
• Exclusion for exceeding the national annual threshold/sectoral threshold in MSEXE

Calendar

VAT simplified procedures

VAT simplified procedures

Not applied