EU distance sales

EU distance sales

 

Question:

Hello,

EOOD, based in Bulgaria, can NOT be VAT registered and operate legally? This is a PayPal business account, which is yet to be verified with the company. The amounts received in the account do not exceed the limit of the countries to which the product is sent and do not exceed 50 000 BGN. Does it matter if the company provides products instead of services? ie in case of sale of products to individuals abroad, is VAT registration obligatory again?
Thanks!

accounting, sales in the EU, remote sales, accounting services, Ruse, Varna, Burgas, Plovdiv, Sofia

 

Answer:

Hello,

There are other cases besides reaching certain revolutions, in which registration under the VAT Act is obligatory. These are cases where a Bulgarian company provides or receives services from EU countries. In such cases, the obligation to submit the registration documents must be made no later than 7 days before the service is provided or received.

Usually who receives or pays via PayPal or conducts online commerce or provides services outside Bulgaria. If you receive advertising services from Google, Facebook, or provide advertising space on your site for which you receive EU money or other types of services, then your company is obliged to register under VAT under Article 97A of the law.

In the case of the provision of services, you are obliged to declare to which legal entity in the EU you are providing services by filing VIES VAT returns (without charging and owing VAT). In the case of receiving services, you are obliged to self-assess 20% VAT and submit it to the "Treasury" (when you have notified your EU counterparty that issues you an invoice for the services provided you have VAT registration - your counterparty does not charge you do not pay VAT to the value of the service you receive).

When supplying goods, products, materials (not services) under the terms of distance sales, the supplier is obliged to register under the VAT, where the distance sales for the Member State exceed for the current calendar year or exceed the amount for the previous calendar year, as defined by the legislation of that Member State. Or, in other words, you'll need to keep track of your sales volume for each country where you sell.

Greetings!




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