1. What VAT deductions are available for foreign businesses operating in Bulgaria?

Foreign businesses may claim a VAT refund in Bulgaria on eligible expenses like accommodation, transport (including taxi fares and public transport), conference fees and other business related expenses. To qualify, claims must be supported by compliant invoices and meet the Bulgarian VAT rules and documentation standards set by the tax authorities.

2. What is the importance of issuing correct VAT invoices in Bulgaria?

Accurate VAT invoices are crucial for successful Bulgarian VAT refund claims. Invoices must display the supplier’s Bulgarian VAT ID, apply the correct Bulgarian VAT rate, and meet local formatting and content requirements. Missing or incorrect information can lead to delays or rejection of foreign VAT refund applications.

3. How do I apply for a Bulgaria VAT number as a foreign business?

Foreign companies must complete a Bulgarian VAT registration through the National Revenue Agency when they have a taxable presence or obligation in Bulgaria. Once approved, the business will receive a Bulgarian VAT number (also referred to as a VAT ID Bulgaria) which is required for issuing compliant invoices and reclaiming local VAT on eligible business expenses.