January 30 2023

Bulgaria Increases Thresholds for VAT Refunds to Non-EU Taxable Persons

Source: IBFD Tax Research Platform News

On 17 January 2023, Bulgaria gazetted changes to several thresholds for VAT refunds to non-EU taxable persons. The main changes are the following:

  • the minimum amount of VAT requested for refund for the annual period is increased from BGN 50 to BGN 100;
  • the minimum amount of VAT requested for refund for a period of less than 1 year but not less than 3 months is increased from BGN 400 to BGN 800;
  • the persons requesting VAT refunds will have to declare the ratio between the performed supplies with the right to a tax credit and the performed supplies without the right to a tax credit; and
  • various administrative simplifications have been introduced, i.e. persons are allowed to provide relevant electronic certificates issued by other tax administrations as well as copies of the documents related to the incurred VAT (instead of the original copies).

The changes were introduced by amendments to the Ministry of Finance's Ordinance No. Н-10 dated 24 August 2006 on the refund of paid VAT to foreign persons who are not established on the territory of the European Union.

The official text of the amendments is available here (in Bulgarian only).