VAT registration when providing services in the European Union

VAT registration when providing services in the European Union

Question:
Hello!
I will start working as a consultant for a company located in Germany for a period of three months. We agreed with the German company that I will have my own organization from which I will send them invoices. During this time, I am scheduled to send them three invoices with a total value of less than BGN 50,000. After that, I would like to stop the company. My questions are:
- What legal entity would be the most suitable for me to register - EOOD?
- Do I have to charge VAT on invoices and declare/administer it?
Thanks in advance!

Answer:
Hello,
The EOOD (Limited Sole Proprietorship) is the best option. What you should keep in mind is that when providing a service to a German company (a company from an EU member state), there is an obligation to register for VAT no later than 7 days before the provision of the first service (according to Article 97a of the VAT Act ). This is a special registration regime, according to which you will not charge VAT in your invoices to the German client, but you will have the obligation to declare them monthly to the National Revenue Agency by submitting a monthly report - VAT declaration. Once these three months have passed and your contract with the German company has ended, your obligation to register for VAT also ceases and you can de-register, since you are registered for VAT, even if you have nothing to declare, you will be obliged to submit monthly returns .
We hope we have been helpful!
Greetings!