VAT deregistration

VAT deregistration

 

Question:
Hello!

I have a sole proprietorship. What I know from the VAT Act is that in case of a drop in turnover below BGN 50,000 at the end of an 18-month period, the company must submit an application for deregistration within 14 days.

Please comment.

Thanks in advance!

 

Answer:

Hello,

Mandatory VAT registration is available only when the company is liquidated. Otherwise, a Company may be registered for VAT at the initiative of the Company itself or at the initiative of the NRA. If the Company is registered for VAT because it has reached a turnover of BGN 50 thousand, it can be deregistered at the moment when this condition is removed (ie for the last 12 months the turnover of the Company is below BGN 50 thousand) . However, if the company has registered at its option, deregistration can be done at least after 12 months from the beginning of the calendar year following the year of VAT registration.

We hope we have been helpful to you.

Greetings!