VAT Registration in Plovdiv
What Is VAT Registration?
VAT (value added tax) registration is mandatory for companies that reach a certain turnover threshold and voluntary for others. For companies in Plovdiv the procedure is handled by the NRA office in Plovdiv Region.
Plovdiv is the second-largest city in Bulgaria, with a rapidly growing IT and industrial sector, which means many businesses here reach the mandatory registration threshold relatively quickly.
Business Environment in Plovdiv
Plovdiv (approximately 350,000 residents) is the second-largest city in Bulgaria, with a rapidly growing IT and industrial sector. The city has over 45,000 registered companies, making it an active business centre.
Key Industries:
- IT & Software Development
- Food & Beverage Industry
- Light Industry
- Tourism
Office Rents: Average office rents in Plovdiv are €5–12/sq.m., which is competitive compared to other cities in the region.
Bank Branches: DSK Bank, UniCredit Bulbank and Postbank have branches on Knyaz Alexander I St., Maritsa Blvd. and in the Trakia district.
Notary Offices: Notary offices are concentrated around Central Square, Rayko Daskalov St. and Shesti Septemvri Blvd..
When Is It Mandatory?
Mandatory VAT registration is required when:
- Taxable turnover exceeds €51,130 in the current calendar year
- You make intra-Community acquisitions exceeding ~€10,226
- You receive services from the EU subject to the reverse charge mechanism
Types of VAT Registration
| Type | Legal Basis | When? |
|---|---|---|
| Mandatory | Art. 96(1) VAT Act | Turnover above €51,130 |
| Voluntary | Art. 100(1) VAT Act | At any time, by choice |
| Intra-Community acquisition | Art. 99 VAT Act | EU acquisitions above ~€10,226 |
| EU services received | Art. 97a VAT Act | Upon receiving services from the EU |
For companies in Plovdiv that work with international clients or suppliers, voluntary registration can be advantageous.
Registration Procedure
- Prepare the application — complete the VAT registration application form
- Attach supporting documents — turnover report, contracts, invoices
- File with the NRA — at the NRA office in Plovdiv Region or electronically
- NRA review — may include a cross-check (up to 14 days)
- Receive your certificate — upon approval you receive a VAT number
Benefits and Obligations
Benefits:
- Right to input tax credit — recover VAT paid on purchases
- Greater trust from business partners and banks in Plovdiv
- Required for working with large corporate clients
Obligations:
- Monthly VAT return by the 14th of the following month
- Issue invoices with VAT
- Maintain purchase and sales ledgers