Selling software, courses and training

Selling software, courses and trainingя

 

 

Question:

Hello,

A Bulgarian company without VAT registration will sell online FL courses and training on the territory of the country. In addition, I will sell various types of software to clients from all over the world. (FL and VAT Registered Companies)

1. Do I have to register under the VAT Act?

2, The courses will be sold primarily to FL and will be sent by Econt. The money will be transferred to the bank account of the company. Is it possible to release a single invoice at the end of the month for all FL sales?

3. Software sales will be mainly to FLs worldwide, but there will also be sales to companies with a valid VAT number. The money will go to PayPal and then to the bank account of the company. Should they issue invoices for these sales.

4. How should the software the firm produces - such as the sale of a good or service - be treated? I'll be emailing.

Thanks in advance!

 

Answer:

Hello,

1. The sale of software within the meaning of the VAT Act is a service (Article 9, paragraph 2, item 1 of the VAT Act - the sale or transfer of rights over intangible property is a service). If you sell software to EU companies, you are subject to mandatory VAT registration on the grounds of Art. 97A, para 2 and para 4 of the law up to 7 days before making the first delivery of service.

2. Once you have the names and addresses of the individuals to whom you send the "courses", it is appropriate to issue an invoice and attach the original to the consignment and keep a copy with you for accounting. There is no concept of bulk invoice for different users. A sales report may be issued, reflecting all invoices issued.

If you sell software to individuals in the EU, you must keep track of sales volumes in each EU country and, upon reaching the appropriate mandatory registration threshold in that country, register under your local VAT law in that country.

We hope we have been helpful.

Greetings!