Here’s an overview of the VAT (Value Added Tax) rates in Bulgaria:
VAT Rates in Bulgaria
| Category | VAT Rate | Notes |
|---|---|---|
| Standard Rate | 20% | Applies to most goods and services. |
| Reduced Rate | 9% | Applies to specific goods and services, mainly in the tourism sector. |
| Zero-rated Supplies | 0% | Includes exports, intra-community supplies, and international transport. |
| Exempt Supplies | Exempt | Includes financial services, healthcare, education, and real estate transactions. |
Detailed Explanation:
- Standard Rate (20%): This is the default VAT rate applicable to most goods and services provided within Bulgaria.
- Reduced Rate (9%): Primarily applies to the tourism sector, such as hotel accommodations, and some other specific services like certain types of books, newspapers, and catering in schools.
- Zero-rated Supplies (0%): This includes exports of goods and services, as well as intra-community supplies (goods transported to other EU countries) and international transport.
- Exempt Supplies: Certain services and transactions are exempt from VAT. These include financial services, medical and dental services, education, and the sale or rental of real estate (with some exceptions).
Additional Points:
- Intracommunity Transactions: Bulgaria follows EU VAT rules, meaning intra-community supplies to other EU countries are typically zero-rated, but businesses must account for reverse charges on imports from other EU countries.
- Registration Threshold: Businesses are required to register for VAT if their taxable turnover exceeds BGN 100,000 (approximately EUR 51,000) within the last 12 months.
These VAT rates and rules are managed by the National Revenue Agency of Bulgaria and are in line with EU VAT directives.