Current VATA reflects the changes, incorporated after Bulgaria-EU accession. Supply of goods by a company, resident of EC member-state, registered under VATA to Bulgarian company, duly registered under VATA, shall no longer be considered import but intra-Community acquisition. Sale of goods by Bulgarian company, registered under VATA to company, resident of EC member-state, registered under VATA, shall no longer be considered import but intra-Community supply.

Tax is payable by the consignee. In five days term as from the tax event date local company shall draft protocol for the supplies, which meets the provisions of Art. 117 of the Act. It shall further hold invoice issued by the supplier in compliance with the provisions of Art. 114. In view tax credit to be granted, acquired goods shall be used for taxable supplies and tax shall be individualized in the protocol. Credit is used through simultaneous recording of the supply in the sales day book and purchase day book.

Taxable amount does no longer include compensations and delay interests.

Determination of taxable amount in case of sale at a loss is eliminated.

Registration threshold amounting to BGN 50 thousand shall include also the zero tax rate taxable supplies.

Optional registration is allowed regardless the realized turnover.

The term for owning assets, acquired prior to the date of registration, for which tax credit is allowed, is limited

VAT shall be accrued for financial leasing at the time of real supply of the goofs but not at the time of the relevant payment. However, Act enables this for leasing agreement, whereas transfer of the title of the goods is option. In compliance with Art. 25, para. 4, regular supplies, for which payment is agreed per each period, are considered individual supplied.

The transfer of the right of ownership of land, the creation or transfer of limited rights in rem to land, as well as the letting of land, are an exempt supply.

Tax credit shall be used within the period of origination or within one of the next 3 periods.

The supplies effected free of charge become exempted transactions. However, they can be taxable in case at the time of acquisition, import or production tax credit has been used (Art. 6, para. 3, p. 2 of the VATA).

Standard software is included to the goods. To the end of 2006 it used to be allocated to the services.

Taxable supplies become:

  1. the creation or transfer of a title on regulated landed estate
  2. transfer of title of ownership over terrains, pertaining to new buildings


Since 1st January 2007 the amount of the VAT, which can be accrued to cash payments, is no more limited.

Administrative sanctions, prescribed by the act, are material.