Is VAT registered when providing services in Bulgaria and outside the EU

Is VAT registered when providing services in Bulgaria and outside the EU

 

Question:
Hello!

Ltd. provides software development services to a company in BG and to a company outside the EU. It does not form an annual turnover for mandatory VAT registration. Is there another reason for VAT registration?

Thanks in advance!

 

Answer:

Hello,

This is how the situation is described, you have no obligation to register.

In principle, there are other grounds for mandatory registration, for example if you receive services from companies within the EU or if you make any intra-Community supplies, etc. more specific, but in view of your activity, you should rather consider whether you receive services from EU companies. If you receive such, then according to Art. 97a of the VAT Act, you should register for VAT on this basis up to 7 days before receiving the first service.

Of course, we are obliged to note that you still have the opportunity to register for VAT and voluntarily, even if you are not subject to mandatory registration.

We hope we have been useful to you!

Greetings!