Do I have to register for VAT when selling a service outside the EU

Do I have to register for VAT when selling a service outside the EU

 

Question:
Hello!

Bulgarian company Ltd. provides only consulting services for Australia, for which it issues an invoice and the amount and is transferred to a bank account.

My question is: after the Bulgarian company reaches a turnover of BGN 50,000, is it obliged to register for VAT?

Thanks in advance!

 

Answer:

Hello,

If you provide the service to a non-taxable person (individual) in Australia, the answer is yes, you are required to register for VAT, because the services you provide form a taxable turnover in Bulgaria. The place of the transaction is considered to be here.

In case you provide the services of a taxable person (company) in Australia, the place of the transaction is where the company is (I guess in Australia) and you will not form a taxable turnover in Bulgaria, respectively you will not need VAT registration. An exception will be the case in which you provide the services of a branch / affiliate of the company that operates in Bulgaria, another EU country or another third country, and depending on which of these hypotheses you fall into, there may still be mandatory VAT registration. .

We hope we have been helpful to you.

Greetings!