VAT compliance in Bulgaria

The main rules applicable to the determination of the place of supply of services are amended by Council Directive 2008/8/ЕC. The main rule is that the place of supply of services should be based at the place where the supplier is established. With the adoption of the new amendments the place of supply of services shall depend on the statute of the client, i.e. when the services are rendered to a taxable person acting as such, the place of supply of such services is the place where the recipient has established their economic activities. When the services are supplied to a non-taxable person, the old rule is retained - the place of supply of services is the place where the supplier has established their economic activities. The principle of the place of taxation being where the factual consumption is performed is retained for a part of the supply of services. Such, for instance, are the supplies of services related to immovable property, with regard to passenger transportation and so forth.

A new concept "service for short-term hiring of means of transport" is introduced. The place of provision in this case is the place where the means of transport is actually put at the disposal of the customer. When the criterion "short-term hiring" is infringed, the general rules shall be applied and the place of execution shall be determined by the statute of the recipient of the service.