A Bulgarian company provides services to an EU company

A Bulgarian company provides services to an EU company

 

Question:
Hello!

Our company provides consulting services in the field of management. We are about to sign a contract and provide services for a period of at least 6 months with a client who is registered as a foundation in the Netherlands. Payments under the contract will be on a monthly basis in the bank account of the company.

In this regard, I ask for your professional advice on the following issues:

1. Do we need VAT registration as a Bulgarian company providing a foundation service in the EU?

2. What grounds for charging / non-charging VAT should be indicated in the invoices?

3. If the company has an account in the electronic money platform iCard, is it necessary to report the receipts through a cash register, given that iCard is listed in the Register of Licensed Electronic Money Companies in the Republic of Bulgaria of the BNB?

Thanks in advance!

 

Answer:

Hello,

Directly to your questions:

1. Do we need VAT registration as a Bulgarian company providing a foundation service in the EU? - VAT registration is mandatory on the grounds of Art. 97a of the VAT Act.

2. What grounds for charging / non-charging VAT should be indicated in the invoices? - When providing services in the EU, you do not charge VAT on the basis of Art. 21, para. 2 of the VAT Act.

3. If the company has an account in the electronic money platform iCard, is it necessary to report the receipts through a cash register, given that iCard is listed in the Register of Licensed Electronic Money Companies in the Republic of Bulgaria of the BNB? - you have no obligation to issue a receipt, since iCard is in the BNB Register.

We hope we have been useful to you!

Greetings!