Every company, despite the fact that it did not carry out any business during the previous year, should prepare and submit:
• Declaration of non-activity in NSI (National Statistical Institute) - until March 31;
• Declaration of lack of activity in the Commercial Register - until March 31;
• In some cases, although the company did not carry out business during the financial year, it should prepare and submit an Annual Tax Return to the NRA - by March 31;
• In some cases, although the company did not carry out any business during the financial year, it should also prepare and publish an annual financial report in the Commercial Register by 30 June;

Dormant companies - definition

In order to be considered as dormant (non-performing, inactive), the company should not have received revenue and recorded expenses during the financial year under the Accounting Act and applicable accounting standards. Anyway, those companies still have to declare to Statistics Institute and to Commercial register that they hadn't got any economical activity durring previous fiscal year. Nominal Accounting Office can prepare and submit for you all necessary declarations and reports in every district in Bulgaria.

Most businesses who incur VAT in connection with their activities in an EU country where they do not habitually supply goods/services (and so are not required to register for VAT) are nevertheless entitled to deduct that VAT. This ‘deduction’ is made by means of a refund from the EU country where they paid the VAT. We provide refund service only to EU companies for cross-border transactions – where the VAT is incurred by people or businesses not based in the EU country where VAT is paid. It does not address the "standard" situation of VAT refunds where both vendor and customer are based in the same country.

How to get a VAT refund?

To avoid potential language problems, claimants send an electronic refund claim to their own national tax authorities – who then forward it to the EU country where the claimant incurred the VAT (once they have confirmed the claimant's identity and VAT identification number, and the validity of their claim). If the tax authorities in the EU country where they incurred the VAT are late in making the refund, claimants are paid interest.

Procedure to follow

1. Application to be submitted by 30th September of the calendar year following the refund period.
2. The application is only considered submitted when the information is complete.
3. The Member State of establishment (MSE) sends the applicant an electronic confirmation of receipt 'without delay'.
4. The MSE has 15 days in which to forward the application to the Member State(s) of refund MSR.
5. The MSE shall not forward the application if, during the refund period, the applicant is not a taxable person; or he carries out only exempt supplies; or he is under the special scheme for small enterprises; or he is covered by the flat rate scheme for farmers.
6. The MSE shall notify the applicant of the decision taken.
7. The MSR notifies the applicant 'without delay' and by electronic means, of the date on which it received the application.
8. The MSR notifies the applicant within 4 months of its decision to approve or refuse the refund application.
9. However, where the MSR does not consider that it has all the relevant information to make a decision, it may request, by electronic means, additional information within that four month period. Further additional information may be required.
10. The additional information is to be supplied to the MSR within one month of the request for additional information being received.
11. The MSR should make a decision within 2 months of receipt of the additional information, or the expiry of the deadline for the receipt of the additional information.
12. Where further additional information is required, the MSR should make a decision to make a whole or partial payment within eight months of receipt of the original application.
13. The MSR has to make the payment within 10 working days of the deadlines. The payment shall be made in the MSR or, at the applicant's request, in another Member State.

Who can get a VAT refund?

To qualify for a refund under this procedure, during the refund period a business must NOT have:
• been based in the refunding EU country or
• supplied goods or services there – except: exempted transport & ancillary services or supplies to customers liable for payment of the related VAT under the reverse-charge mechanism.

The claimant's home EU country will not forward the claim to the refunding EU country if the claimant:
• is not a taxable person for VAT purposes
• only makes exempt supplies without right of deduction
• is covered by the special scheme for small businesses
• is covered by the flat-rate scheme for farmers.

What can be refunded?

VAT relating to business activities carried out outside the Member State of Refund if those activities would be subject to tax or exempt with a right to deduct in the Member State of Refund if they had been made there, and VAT relating to supplies on which the reverse charge is applicable in the Member State of Refund, and VAT relating to telecommunications, broadcasting or electronic services to non-VAT taxable persons covered by special MOSS scheme.

What cannot be refunded?

VAT incurred which relates directly to activities which are exempt without the right to deduct. VAT incurred on expenses on which there are restrictions on the right to deduct in the Member State of Refund. Restrictions on the right to deduct VAT in Bulgaria for received supplies of goods and services apply when:
• the goods or services are designated for carrying out exempt supplies under Chapter 4 “Exempt supplies and acquisitions” of the VAT Act;
• the goods or services are designate for supplies free of charge or for activities other than the economic activity of the person;
• the goods or services are designated for representative or entertaining purposes;
• a motorcycle or an automobile has been acquired or imported;
• the goods or the services are intended for maintenance, repair, improvement or operation of motorcycles and automobiles, including for spare parts, assembly, fuel and lubrication materials;
• the goods are seized in favour of the state or the building is destroyed as unlawfully constructed.

Please, contact Nominal in order to apply for EU VAT refund. Assigning the procedure to us, you get:
• Timely and expeditious documentation processing;
• Reasonable pricing;
• No additional fees and commissions;
• You receive the refund directly into your bank account;

Whilst business success cannot be guaranteed, we can guarantee a successful first step for your business - the formation of a company and registration with the appropriate tax authorities, so that you can focus your efforts entirely on your commercial activity. Nominal can help you in starting a business by choosing an appropriate legal form and making mandatory and voluntary subsequent registrations in the institutions.

Limited Company Registration

• Limited Company with one or more shareholders, Joint-stock company etc.;
• Sole Proprietor;
• Consortium;
• Place of activity, branch;
Only Bulgarian and EU citizens (or companies) can purchase land in Bulgaria, therefore to buy a house with a garden a non EU citizen have to setup a company. The minimum required capital is BGN 2.00 or approximately 1 EUR.

REGISTRATION IN BULSTAT REGISTER

• Legal entities who are not traders;
• Freelance or craft activity;
• Foreign persons - branches, representation office, owners of real estate;

VAT REGISTRATION

• Registration by turnover;
• Voluntary registration;
• Registration for Reverse VAT charge;
• Other types of VAT registration;

REGISTRATIONS IN NRA

• Registration of self-employed;
• Registration of a foreign person;
• NRA tax ID number;
• Registering an Online Merchant;
• Others;