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VAT on electronic services according to the Bulgarian legislation



  • The Russian businessman is the developer of a software product. The Bulgarian OOD is the agent for its distribution. Among the clients as the EU residents and citizens of Russia. Customers rent the above listed product and accordingly the rent on R/the account of a Bulgarian company, which in turn transfers money to Russia for the software, leaving at its disposal an Agency fee. Questions: whether in this case the Agency fee under the 0 rate of VAT? If Yes, then what documents are required to confirm zero rate, given that this is a set of electronic signals transmitted from the server (where the server is unknown). These signals are routed to the trading platform of a Forex broker to manage the trading accounts of the clients.
  • Ultimate beneficiary-Russian IP and the transfer of funds to Russia need to prove receipt of goods /services in Bulgaria? If Yes, then the issue is the same. What document can you confirm these let’s call the signals?


  • The VAT law in Bulgaria divides software products into two groups – standard and non-standard products. Standard included in the concept of “goods” (CL.5, al.1 of the Law), custom no. In the result, depending on the particular product delivery is treated as delivery of goods or services. The difference in the interpretation of the delivery leads to the use of different modes of taxation is VAT. According to 1, T. 25 Additional provisions of the Law on VAT “standard software” is a product, recorded on technical carrier, which is intended for mass consumption, and does not meet the specifications of a particular consumer. Upon delivery of such product use terms for the delivery of goods. Every other software product that does not meet the above specified criteria, qualifies for VAT as non-standard, and it is taxed as a service.
  • From the question it follows that a firm in Bulgaria is not the owner of the custom software product, and the owner is the person with jurisdiction outside the EU (Russia), and plays the role of a mediator representing their interests, and provides the product in use, both in Bulgaria and in the countries-members of the EU and outside the EU.

    Ownership of this software product is not transferred from the Russian entity to a Bulgarian company, so the discussion can take predostavlenii mediation usloviya the use of the software.Delivery services is the transfer of right to use software other than standard software.

    Member 24 of the Law on VAT the place of performance of the services (operations) provided by intermediary, acting on behalf and for the benefit of another person not zaregistrirovatsya VAT in Bulgaria or a member state of the EU as the place where the basic shipping, which is such a mediation service.

    When providing this service face, zaregistrirovatsya VAT in Bulgaria or a member state of the EU, this place is mestonahozhdeniya services.

    From the foregoing it follows that upon delivery of services:

    – person registered in Bulgaria – the VAT on the cost of the service;

    the person unregistered for VAT (VAT) in the country EU member – the VAT on the cost of the service;

    – person registered for VAT (VAT) in the member state of the EU, as well as those outside the EU are not charged VAT on the cost of the service.

    The Agency feereceived by firm-intermediary in Bulgaria from the owner of the software product, you can consider the service provided from the Bulgarian company, and this amount is subject to VAT at the zero rate as an export of services outside EU.

  • Because of the first part of the question implies that custom software is not transferred to the Bulgarian firm-to the intermediary and shipping is done directly to the final consumer, it is possible to conclude the contract for the provision of mediation services for the firm – intermediary, and make payments from consumers related to the Russian company under this agreement.

    Olena shopova – Logis Finance LTD

    Irina Szyszkowska – Expert info EOOD

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    The agreement between the Republic of Bulgaria and PoA



    The agreement between the Republic of Bulgaria and PoA socialno osigurava

    Otgovarya Aspasia PETKOVA – expert sotsialno and sensibly osigurava

    Blgarska firm e stlucia civil (consultants) contract SS samosyrovo CE face from PoA (privateentrepreneurial), systo the person e has provided the certificate of vneseni osiguritelna payment in PoA. Work on a civil contract shte se izvrsava iScala from PoA. Between Bulgaria and PoA ima lady Contract for socialno osigurava and Agreement it is him, spared of koito sleda and that izdade certificate UKR/BG – 1 for socialnet osigurava. Cyclase pismo from ministerstvoto on socialnet policy on PoA, spratto specifically Tosi case, certificate UKR/BG – 1 is not Mauger Yes, byde isdalen, the Kato in sportbut not e posecene kompetentna institution for savaneta mu. When Taka will izlojenie actually behme could all Pak and that will call for agreement between dete dyrehave and Yes not rule socialogically payment for liceto, or sleda Yes prestype it izdavanje to your office number and unsane on osigurovki in Bulgaria?


    In oblastta on socialnet osigurava between Bulgaria and PoA e lady of the Agreement between Republic of Bulgaria and PoA socialno osigurava, ratificaron SS law, pried from 39-OTO folk sybrina on 28.11.2001 g – DV, br. 107 from 11.12.2001 G., izzadin from the MLSP, in force from 1.04.2003 G. Shigeno member. 6 from the agreement spremo caetite the face of the CE attached to zakonodatelstvo tazi dogovara country, territory ciato those izvrsavam Trudova dejnost, regardless of MASCOTA on prebivavane, decollato in CL. 7 tozi contract is not all predvid other. Spremo Licata, syrcuse samostoyatelno dejnost with constantly prebivavane on teritoriala on ednita dogovara country, koito sysstat Trudova dejnost on teritoriala on date zagovorami strani, se attached zakonodatelstvo on dogovarati country coato tezi face prebyvat constantly. Cyclase member. 20 from dopolnitelnie of rasporedu on the contract documentati essential for prileganie on Tosi contract izdadeno and Severini on ustanovenia ed from kompetentnye kompetentnye organizations or institutions on ednita dogovara CoE country CoE PRIMAT from kompetentnye kompetentnye organizations or institutions on drugata dogovara country without legalization.

    On the base member. 19 from dopolnitelnie of rasporedu on contract kompetentnye organiza on date zagovorami strani se dogovorit for procedurnye vybrosi for prileganie on Tosi contract through podpisane on otdelno agreement. Lady e Agreement between Nacionalne osiguritelna Institute, Republic of Bulgaria and ministerstvoto on labor and socialnet policy on the PoA for prolagene on the agreement between the Republic of Bulgaria and PoA socialno osigurava from 04.09.2001 G. Shigeno member. 3 of him “Dwujezyczne formulari”: “In prileganie on the contract and sporazumele kompetentnye institutions ispolzvat will dogovornye from kompetentnye organiza on dogovarati countriesand dwujezyczne formulary, koito systemlevel nerazdelni frequent Tova from the agreement: the Identity for osigurava on komandirovka person, entity, syrcuse samostoyatelno dejnost (BG-UKR 1).” Uvedomte nor, che cyclase pismo from ministerstvoto on socialnet policy on PoA, spratto specifically Tosi case, certificate UKR/BG – 1 is not Mauger Yes, byde isdalen, the Kato in sportbut not e posecene kompetentna institution for savaneta mu. Bi trebalo of togawa of ministerstvoto in PoA Yes Dade odgovor in konkretnie case kakyu e dokumenty and hell go izdava, decasas of osiguravaju on samosogrevanie behold the face in PoA. Liceto from PoA, with koito STE has slouchily civil contract, e samosyrovo behold the face in PoA (privateentrepreneurial) and e provided the certificate of vneseni osiguritelna payment in PoA. Osven Tova work on a civil contract shte sa izvrsna iScala from teritoriala on PoA.

    In case e is interesting kakvo predvid of ukrainskoe zakonodatelstvo in tezi cases. Kogato liceto poluchova income from a foreign land, deljeno the e pribumi tezi Yes Sumi it get si to obtain a PoA, with ogled unsane on osiguritelna payment and gave dokumenty, koito e presented Ukrainskie citizen, Obama and tezi income, obtain from Bulgaria, yotveta gave Vyru areas of sa vneseni osiguritelna payment on ukrainskoho zakonodatelstvo. Ako e Taka, counting, th e anterior Vyru MySite Sumi and that Wasat osiguritelna payment and bulgarskoto zakonodatelstvo. Dogovory and Sporazumele between Bulgaria and the PoA tryabva Yes bydet of aktualisieren against documentate, koito tryabva Yes se present. Osven Tova in the areas of nyama rasporedu, Syrzan with Vasanta on osiguritelna payment for socialno and health osigurava. Nyama tekstove, Syrzan with Opredelenie on prilozhimo zakonodatelstvo against Vasanta on osiguritelna payment. But otogawa counting, che predstaveni document from the Ukrainian, the citizen Mauger Yes serve Kato basis for osvobojdenie from osiguritelna payment for socialno and health osigurava in Bulgaria, Imani predvid and citiraya in mount rasporedu on the contract and sporazumele. And the attitude at stavroto osigurava osiguritelna payment in Bulgaria, not that will dylia, because liceto nyama permission for dylserine prebivavane or permanently in Bulgaria and podlagi on the health osigurava in PoA. Kompetentna blgarska institution kojato e opravovne Yes to be determined by primogenito zakonodatelstvo at Vasanta on osiguritelna payment e nacionalnata Agency for come.



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    Bulgaria’s accession to the Schengen area has been approved

    As reported, during a debate in the European Parliament in Strasbourg MEPs from different countries strongly supported the accession of Bulgaria and Romania to the Schengen area. They urged the Council to change the unjust situation that has been continuing for six years, and to include, finally, to the Schengen area these two countries.

    The discussion was initiated by the Bulgarian members of the socialist group at the initiative of Sergey Stanishev.

    According to Sergei Stanishev, the completion of the process of enlargement of the Schengen zone is important not only for Bulgaria and Romania, but for the whole EU. Preventing the two countries to the Schengen area shows the lack of solidarity and disregard for the rules adopted by the EU. It’s time to put an end to this injustice.

    Dimitris Avramopoulos – European Commissioner for migration and home Affairs – confirmed that the expansion of Schengen in the interests of the European Union. Representatives of the main political factions in the European Union strongly expressed its support for Bulgaria and Romania.

    Only two groups (ECR and “Evrohata on svobodata and Praca democracia”) did not support the requirement for the accession of Bulgaria and Romania to the Schengen area, according to BTA. All other associations said that the two countries have met all the necessary requirements for inclusion in the Schengen area.

    What will change for the immigrants?

    When choosing a country to move to for many, not least the opportunity of free movement in the EU. Within six years, the immigrants in Bulgaria hoped that the country will join the Schengen area. Soon those dreams will finally become a reality.

    The status holders of a residence permit, permanent residence or DWA don’t want to limit ourselves to countries from Bulgaria to get visa, and try to get a Schengen visa. A even fly on home, as this facilitates the visa for the long term.

    Since the accession of Bulgaria to the Schengen area will all become much easier. No need neither to go home nor to apply to foreign embassies in Sofia. Borders with other Schengen countries will be suspended, and will be no preparation of documents and visas to travel to other EU States.