Bulgaria VAT Return

Section 1 — Quick reference

Quick reference table

Field	Value
Country	Bulgaria (Republic of Bulgaria)
Standard rate	20%
Reduced rates	9% (accommodation/hotel services, printed/electronic books, baby food/hygiene products)
Zero rate	0% (exports, intra-EU B2B supplies of goods, international transport)
Return form	Spravka-deklaratsiya po DDS (monthly summary return with purchase/sales ledgers)
Filing portal	https://portal.nra.bg (NRA e-services portal)
Authority	Natsionalna agentsiya za prihodite (NRA / NAP — National Revenue Agency)
Currency	BGN (Bulgarian Lev); EUR from 2026 target date — verify
Filing frequencies	Monthly only (no quarterly/annual option for VAT returns in Bulgaria)
Deadline	14th of the month following the tax period
Companion skill (Tier 1, workflow)	vat-workflow-base v0.1 or later — MUST be loaded
Companion skill (Tier 2, EU directive)	eu-vat-directive v0.1 or later — MUST be loaded
Validated by	Deep research verification, April 2026
Validation date	April 2026

Read this whole section before classifying anything. The workflow runbook is in vat-workflow-base Section 1 — follow that runbook with this skill providing the country-specific content and eu-vat-directive providing the EU directive content.

Key return structure — Bulgaria uses purchase/sales ledgers submitted with the return:

The return (Spravka-deklaratsiya) summarizes ledger totals. Key rows:

Return row table

Row	Meaning
01	Total output DDS (danak za nachislyavane)
11	Output DDS on domestic supplies at 20%
12	Output DDS on domestic supplies at 9%
13	Output DDS on intra-EU acquisitions
14	Output DDS on services received from abroad (reverse charge)
15	Output DDS on import (deferred payment scheme if applicable)
20	Zero-rated supplies (exports)
21	Intra-EU supplies of goods
22	Services to EU (B2B, place of supply = customer)
30	Exempt supplies without credit
31	Total input DDS (danak za prispacane / tax credit)
40	Input DDS on domestic purchases
41	Input DDS on intra-EU acquisitions (reverse charge input side)
42	Input DDS on imports
43	Input DDS on services from abroad (reverse charge input side)
50	Net DDS position (Row 01 minus Row 31)
60	Excess credit (nadvishan danak za prispacane) — 3-period offset rule
70	DDS payable to budget
80	DDS refundable (after 3-period offset)

Conservative defaults — Bulgaria-specific values for the universal categories in vat-workflow-base Section 2:

Conservative defaults table

Ambiguity	Default
Unknown rate on a sale	20%
Unknown VAT status of a purchase	Not deductible
Unknown counterparty country	Domestic Bulgaria
Unknown B2B vs B2C status for EU customer	B2C, charge 20%
Unknown business-use proportion (vehicle, phone, home office)	0% recovery
Unknown SaaS billing entity	Reverse charge from non-EU
Unknown blocked-input status (entertainment, personal use)	Blocked
Unknown whether transaction is in scope	In scope

Red flag thresholds — country slot values for the reviewer brief in vat-workflow-base Section 3:

Red flag thresholds table

Threshold	Value
HIGH single-transaction size	BGN 5,000
HIGH tax-delta on a single conservative default	BGN 400
MEDIUM counterparty concentration	>40% of output OR input
MEDIUM conservative-default count	>4 across the return
LOW absolute net DDS position	BGN 10,000

Section 2 — Required inputs and refusal catalogue

• Required inputs — Minimum viable — bank statement for the month in CSV, PDF, or pasted text. Must cover the full period. Acceptable from any Bulgarian or international business bank: UniCredit Bulbank, DSK Bank, Fibank (First Investment Bank), Postbank (Eurobank Bulgaria), UBB (United Bulgarian Bank), Raiffeisenbank Bulgaria, Revolut Business, Wise Business, or any other.
• Required inputs — Recommended — sales invoices for the period (especially for intra-EU B2B services and zero-rated supplies), purchase invoices for any input DDS claim above BGN 400, the client's DDS number in writing (BG + 9/10 digits).
• Required inputs — Ideal — complete purchase/sales ledgers (dnevnik za pokupkite / dnevnik za prodazhbite), prior period return, reconciliation of excess credit brought forward.
• Refusal policy if minimum is missing — SOFT WARN. If no bank statement is available at all, hard stop. If bank statement only without invoices, proceed but record in the reviewer brief: "This return was produced from bank statement alone. The reviewer must verify, before approval, that input DDS claims above BGN 400 are supported by compliant tax invoices and that all reverse-charge classifications match the supplier's invoice."

These refusals apply on top of the EU-wide refusals in eu-vat-directive Section 13 (R-EU-1 through R-EU-12). If any trigger fires, stop, output the refusal message verbatim, end the conversation.

• R-BG-1 — Non-registered entity attempting to file a DDS return — Trigger: client is not registered for DDS and turnover is below the mandatory threshold (EUR 51,130 / BGN 100,000 from 2026). Message: "Non-registered entities do not file DDS returns. If you wish to register voluntarily, contact NRA first."
• R-BG-2 — Partial exemption (mixed taxable and exempt supplies) — Trigger: client makes both taxable and exempt-without-credit supplies and the exempt proportion is not de minimis. Message: "You make both taxable and exempt supplies. Your input DDS must be apportioned using the partial credit coefficient (koefitsient) under ZDDS Art. 73. This requires an annual calculation. Please use a qualified accountant to determine the coefficient before input DDS is claimed." (ZDDS Art. 73)
• R-BG-3 — VAT group structure — Trigger: client is part of a DDS group registration. Message: "DDS group registrations require consolidation across the group. Out of scope."
• R-BG-4 — Special schemes (margin, travel agent, investment gold) — Trigger: client deals in second-hand goods, travel packages, or investment gold under special schemes. Message: "Special DDS schemes require transaction-level margin or package computation. Out of scope for this skill."
• R-BG-5 — SAF-T filing complexity — Trigger: client is a large enterprise required to file SAF-T alongside the DDS return with complex multi-branch reporting. Message: "SAF-T filing for large enterprises with multi-branch structures requires specialist IT and accounting setup. Out of scope."
• R-BG-6 — Fiscal representative — Trigger: non-resident supplier with fiscal representative in Bulgaria. Message: "Non-resident registrations with fiscal representatives have specific obligations beyond this skill. Please use a qualified accountant."

Section 3 — Supplier pattern library (the lookup table)

This is the deterministic pre-classifier. When a transaction's counterparty matches a pattern in this table, apply the treatment from the table directly. Do not second-guess. Do not consult Tier 1 rules — the table is authoritative for patterns it covers.

How to read this table. Match by case-insensitive substring on the counterparty name as it appears in the bank statement. If multiple patterns match, use the most specific. If none match, fall through to Tier 1 rules in Section 5.

3.1 Bulgarian banks (fees exempt — exclude)

Bulgarian banks table

Pattern	Treatment	Notes
UNICREDIT BULBANK, BULBANK	EXCLUDE for bank charges/fees	Financial service, exempt
DSK BANK, DSK	EXCLUDE for bank charges/fees	Same
FIBANK, FIRST INVESTMENT BANK	EXCLUDE for bank charges/fees	Same
POSTBANK, EUROBANK BULGARIA	EXCLUDE for bank charges/fees	Same
UBB, UNITED BULGARIAN BANK	EXCLUDE for bank charges/fees	Same
RAIFFEISENBANK BG, RAIFFEISEN	EXCLUDE for bank charges/fees	Same
REVOLUT, WISE, N26 (fee lines)	EXCLUDE for transaction/maintenance fees	Check for separate taxable subscription invoices
ЛИХВА, ЛИХВИ, INTEREST	EXCLUDE	Interest income/expense, out of scope
КРЕДИТ, ЗАЕМ, LOAN	EXCLUDE	Loan principal movement, out of scope

3.2 Bulgarian government, regulators, and statutory bodies (exclude entirely)

Government/regulator table

Pattern	Treatment	Notes
НАП, NRA, NAP, NATIONAL REVENUE	EXCLUDE	Tax payment, not a supply
ДДС ПЛАЩАНЕ, VAT PAYMENT	EXCLUDE	DDS payment
МИТНИЦА, CUSTOMS	EXCLUDE	Customs duty (but check for import VAT on customs declaration)
НОИ, NSSI, SOCIAL INSURANCE	EXCLUDE	Social security payment
ОБЩИНА, MUNICIPALITY	EXCLUDE	Municipal fees, sovereign acts
АГЕНЦИЯ ПО ВПИСВАНИЯТА, REGISTRY AGENCY	EXCLUDE	Company registration fees
ПАТЕНТНО ВЕДОМСТВО	EXCLUDE	Patent office fees

3.3 Bulgarian utilities

Utilities table

Pattern	Treatment	Row	Notes
ЧЕЗ, CEZ RAZPREDELENIE, CEZ ELECTRO	Domestic 20%	40 (input)	Electricity — overhead
ЕЛЕКТРОХОЛД, ELECTROHOLD	Domestic 20%	40 (input)	Electricity distributor
EVN BULGARIA, EVN	Domestic 20%	40 (input)	Electricity — overhead
ENERGO-PRO, ЕНЕРГО-ПРО	Domestic 20%	40 (input)	Electricity — overhead
СОФИЙСКА ВОДА, SOFIYSKA VODA	Domestic 20%	40 (input)	Water — overhead
VIVACOM, ВИВАКОМ	Domestic 20%	40 (input)	Telecoms/broadband
A1 BULGARIA, А1	Domestic 20%	40 (input)	Telecoms
YETTEL, ТЕЛЕНОР	Domestic 20%	40 (input)	Telecoms
БУЛГАРГАЗ, OVERGAS	Domestic 20%	40 (input)	Gas supply

3.4 Insurance (exempt — exclude)

Insurance table

Pattern	Treatment	Notes
DZI, ДЗИ	EXCLUDE	Insurance, exempt
BULSTRAD, БУЛСТРАД	EXCLUDE	Same
ALLIANZ BULGARIA, АЛИАНЦ	EXCLUDE	Same
GENERALI BULGARIA	EXCLUDE	Same
EUROINS, ЕВРОИНС	EXCLUDE	Same
UNIQA BULGARIA	EXCLUDE	Same
ЗАСТРАХОВКА, INSURANCE, ПРЕМИЯ	EXCLUDE	All exempt

3.5 Post and logistics

Post and logistics table

Pattern	Treatment	Row	Notes
БЪЛГАРСКИ ПОЩИ, BULGARIAN POSTS	EXCLUDE for standard postal services		Universal postal service, exempt
БЪЛГАРСКИ ПОЩИ (parcel/courier)	Domestic 20%	40	Non-universal services are taxable
SPEEDY, СПИДИ	Domestic 20%	40	Domestic courier
ECONT, ЕКОНТ	Domestic 20%	40	Domestic courier
DHL EXPRESS BG	Domestic 20%	40	Express courier
DHL INTERNATIONAL	EU reverse charge (DE/IE entity)	41/43	Check invoice — European billing entity

3.6 Transport

Transport table

Pattern	Treatment	Row	Notes
БДЖ, BDZ, BULGARIAN RAILWAYS	Domestic 20%	40	Domestic rail
SOFIA METRO, МЕТРОПОЛИТЕН	EXCLUDE / 20%		Public transport
TAXI, ТАКСИМЕТРОВ	Domestic 20%	40	Local taxi
RYANAIR, WIZZ AIR (international)	EXCLUDE / 0%		International flights zero rated
BULGARIA AIR (domestic)	Domestic 20%	40	Domestic flight
BULGARIA AIR (international)	EXCLUDE / 0%		International flight zero rated

3.7 Food retail (blocked unless hospitality business)

Food retail table

Pattern	Treatment	Notes
KAUFLAND, LIDL, BILLA, FANTASTICO	Default BLOCK input DDS	Personal provisioning. Deductible only if hospitality/catering business.
CBA, METRO CASH & CARRY	Default BLOCK unless resale	If buying for resale, deductible
РЕСТОРАНТ, RESTAURANT, КАФЕ, CAFE	Default BLOCK	Entertainment/representation — see Section 5.12

3.8 SaaS — EU suppliers (reverse charge)

These are billed from EU entities and trigger reverse charge under ZDDS Art. 82(2).

SaaS EU suppliers table (ZDDS Art. 82(2))

Pattern	Billing entity	Row	Notes
GOOGLE (Ads, Workspace, Cloud)	Google Ireland Ltd (IE)	14/43	Reverse charge services
MICROSOFT (365, Azure)	Microsoft Ireland Operations Ltd (IE)	14/43	Reverse charge
ADOBE	Adobe Systems Software Ireland Ltd (IE)	14/43	Reverse charge
META, FACEBOOK ADS	Meta Platforms Ireland Ltd (IE)	14/43	Reverse charge
LINKEDIN (paid)	LinkedIn Ireland Unlimited (IE)	14/43	Reverse charge
SPOTIFY TECHNOLOGY	Spotify AB (SE)	14/43	EU, reverse charge
DROPBOX	Dropbox International Unlimited (IE)	14/43	Reverse charge
SLACK	Slack Technologies Ireland Ltd (IE)	14/43	Reverse charge
ATLASSIAN (Jira, Confluence)	Atlassian Network Services BV (NL)	14/43	EU, reverse charge
ZOOM	Zoom Video Communications Ireland Ltd (IE)	14/43	Reverse charge
STRIPE (subscription fees)	Stripe Technology Europe Ltd (IE)	14/43	Transaction fees may be exempt — see 3.11

3.9 SaaS — non-EU suppliers (reverse charge)

SaaS non-EU suppliers table

Pattern	Billing entity	Row	Notes
AWS EMEA SARL	AWS EMEA SARL (LU)	14/43	LU entity = EU reverse charge
NOTION	Notion Labs Inc (US)	14/43	Non-EU reverse charge
ANTHROPIC, CLAUDE	Anthropic PBC (US)	14/43	Non-EU reverse charge
OPENAI, CHATGPT	OpenAI Inc (US)	14/43	Non-EU reverse charge
GITHUB (standard plans)	GitHub Inc (US)	14/43	Check if billed by IE entity
FIGMA	Figma Inc (US)	14/43	Non-EU reverse charge
CANVA	Canva Pty Ltd (AU)	14/43	Non-EU reverse charge
HUBSPOT	HubSpot Inc (US) or IE — check	14/43	Depends on billing entity
TWILIO	Twilio Inc (US)	14/43	Non-EU reverse charge

3.10 Payment processors

Payment processors table

Pattern	Treatment	Notes
STRIPE (transaction fees)	EXCLUDE (exempt)	Payment processing fees are exempt financial services
PAYPAL (transaction fees)	EXCLUDE (exempt)	Same
STRIPE (monthly subscription)	EU reverse charge	Stripe IE entity — separate from transaction fees
SUMUP, SQUARE, ZETTLE	Check invoice	If BG entity: domestic 20%; if IE/EU entity: reverse charge

3.11 Professional services (Bulgaria)

Professional services table

Pattern	Treatment	Row	Notes
НОТАРИУС, NOTARY	Domestic 20%	40	Deductible if business purpose
СЧЕТОВОДИТЕЛ, ACCOUNTANT, ОДИТОР, AUDITOR	Domestic 20%	40	Always deductible
АДВОКАТ, LAWYER, ATTORNEY	Domestic 20%	40	Deductible if business legal matter
ТЪРГОВСКИ РЕГИСТЪР, COMMERCIAL REGISTER	EXCLUDE	Government fee, not a supply

3.12 Payroll and social security (exclude entirely)

Payroll and social security table

Pattern	Treatment	Notes
ДОО, DOO, СОЦИАЛНО ОСИГУРЯВАНЕ	EXCLUDE	Social security contribution
ДЗПО, DZPO	EXCLUDE	Supplementary pension
ЗО, ЗДРАВНО ОСИГУРЯВАНЕ	EXCLUDE	Health insurance contribution
ЗАПЛАТА, SALARY, WAGES	EXCLUDE	Wages — outside DDS scope
ДАНЪК ВЪРХУ ДОХОДИТЕ	EXCLUDE	Income tax

3.13 Property and rent

Property and rent table

Pattern	Treatment	Notes
НАЕМ, RENT (commercial, with DDS invoice)	Domestic 20%	Commercial lease where landlord charges DDS
НАЕМ, RENT (residential, no DDS)	EXCLUDE	Residential lease exempt (first letting)
ПРОМИШЛЕН ПАРК, INDUSTRIAL PARK	Domestic 20%	Industrial/commercial let

3.14 Internal transfers and exclusions

Internal transfers table

Pattern	Treatment	Notes
ВЪТРЕШЕН ПРЕВОД, OWN TRANSFER, INTERNAL	EXCLUDE	Internal movement
ДИВИДЕНТ, DIVIDEND	EXCLUDE	Dividend payment, out of scope
ПОГАСЯВАНЕ НА КРЕДИТ, LOAN REPAYMENT	EXCLUDE	Loan principal, out of scope
ТЕГЛЕНЕ, CASH WITHDRAWAL, ATM	Ask	Default exclude; ask what cash was spent on

Section 4 — Worked examples

These are six fully worked classifications drawn from a hypothetical bank statement of a Bulgaria-based self-employed IT consultant. They illustrate the trickiest cases.

Example 1 — Non-EU SaaS reverse charge (Notion)

Input line: 03.04.2026 ; NOTION LABS INC ; DEBIT ; Monthly subscription ; USD 16.00 ; BGN 28.70

Reasoning: Notion Labs Inc is a US entity (Section 3.9). No VAT on the invoice. Service received from non-EU supplier. Under ZDDS Art. 82(2), the Bulgarian recipient self-assesses output DDS at 20% and simultaneously claims input DDS. Both sides must appear: output in Row 14, input in Row 43. Net effect zero for fully taxable client.

Output table

Date	Counterparty	Gross	Net	DDS	Rate	Row (input)	Row (output)	Default?	Question?	Excluded?
03.04.2026	NOTION LABS INC	-28.70	-28.70	5.74	20%	43	14	N	—	—

Example 2 — EU service, reverse charge (Google Ads)

Input line: 10.04.2026 ; GOOGLE IRELAND LIMITED ; DEBIT ; Google Ads April 2026 ; -1,660.00 ; BGN

Reasoning: Google Ireland Limited is an IE entity — standard EU reverse charge. Google Ads is a service. Output DDS self-assessed at 20% in Row 14, input DDS in Row 43. Both sides on the return. Net zero for fully taxable client.

Output table

Date	Counterparty	Gross	Net	DDS	Rate	Row (input)	Row (output)	Default?	Question?	Excluded?
10.04.2026	GOOGLE IRELAND LIMITED	-1,660.00	-1,660.00	332.00	20%	43	14	N	—	—

Example 3 — Entertainment/representation, limited deduction

Input line: 15.04.2026 ; РЕСТОРАНТ ЩАСТЛИВЕЦА ; DEBIT ; Business dinner ; -430.00 ; BGN

Reasoning: Restaurant transaction. In Bulgaria, entertainment/representation expenses have deductible input DDS but the expense itself is subject to a 10% expense tax under the Corporate Income Tax Act (ZKPO Art. 204–207). The input DDS on the invoice IS deductible (unlike Malta where entertainment is hard-blocked). However, for a sole trader (ET), representation expenses may be challenged. Default: claim input DDS but flag for reviewer. Note the 10% expense tax obligation separately.

Output table

Date	Counterparty	Gross	Net	DDS	Rate	Row	Default?	Question?	Excluded?
15.04.2026	РЕСТОРАНТ ЩАСТЛИВЕЦА	-430.00	-358.33	-71.67	20%	40	Y	Q1	"Representation: confirm business purpose; 10% expense tax applies"

Example 4 — Capital goods (no statutory threshold)

Input line: 18.04.2026 ; ТЕХНОПОЛИС ; DEBIT ; Laptop Lenovo ThinkPad ; -3,118.00 ; BGN

Reasoning: Bulgaria does not have a specific DDS monetary threshold for capital goods like Malta's EUR 1,160. However, assets used for business with a useful life > 1 year are subject to capital goods adjustment rules: 5-year for movables (ZDDS Art. 79(3)), 20-year for immovables (ZDDS Art. 79(7)). This laptop qualifies as a capital asset. Input DDS is deductible. Flag for capital goods tracking.

Output table

Date	Counterparty	Gross	Net	DDS	Rate	Row	Default?	Question?	Excluded?
18.04.2026	ТЕХНОПОЛИС	-3,118.00	-2,598.33	-519.67	20%	40	N	—	"Capital goods — 5yr adjustment tracking"

Example 5 — EU B2B service sale (inbound receipt)

Input line: 22.04.2026 ; STUDIO KREBS GMBH ; CREDIT ; Invoice BG-2026-018 IT consultancy March ; +6,850.00 ; BGN

Reasoning: Incoming from a German company. The client provides IT consulting services. B2B place of supply is the customer's country (Germany). The Bulgarian client invoices at 0%. Report in Row 22 (services to EU). Confirm: (a) customer has valid USt-IdNr; (b) invoice shows no Bulgarian DDS.

Output table

Date	Counterparty	Gross	Net	DDS	Rate	Row	Default?	Question?	Excluded?
22.04.2026	STUDIO KREBS GMBH	+6,850.00	+6,850.00	0	0%	22	Y	Q2 (HIGH)	"Verify German USt-IdNr on VIES"

Example 6 — Motor vehicle, partial restriction

Input line: 28.04.2026 ; OMV БЪЛГАРИЯ ; DEBIT ; Fuel ; -150.00 ; BGN

Reasoning: Fuel purchase. In Bulgaria, input DDS on passenger vehicles and their fuel/maintenance is deductible only if the vehicle is used exclusively for business, for taxi/rent-a-car, or if the vehicle has 6+1 seats. For a standard passenger car used partly for personal purposes, input DDS is restricted. Default: 0% recovery unless the client can demonstrate 100% business use or the vehicle qualifies under the exceptions (ZDDS Art. 70(1)(4-5)).

Output table

Date	Counterparty	Gross	Net	DDS	Rate	Row	Default?	Question?	Excluded?
28.04.2026	OMV БЪЛГАРИЯ	-150.00	-150.00	0	—	—	Y	Q3	"Vehicle: confirm 100% business use or excluded vehicle type"

Section 5 — Tier 1 classification rules (compressed)

Each rule states the legal source and the row mapping. Apply silently if the data is unambiguous.

5.1 Standard rate 20% (ZDDS Art. 66(1)(1))

• Unknown rate on a sale — 20%

5.2 Reduced rate 9% (ZDDS Art. 66(2))

• Reduced rate — 9% (Applies to: accommodation/hotel services (tourist sector), printed and electronic books and publications, specific baby food and hygiene products. Sales: Row 12 (output base/DDS). Purchases: Row 40 at 9%.) (ZDDS Art. 66(2))
• Restaurant/catering 9% rate expiry — The temporary 9% rate on restaurant/catering and sports facilities expired 31 December 2024. From 1 January 2025 these are at 20%.

5.3 Zero rate and exempt with credit

• Zero rate and exempt with credit categories — Exports outside EU (ZDDS Art. 28): Row 20. Intra-EU B2B supplies of goods (ZDDS Art. 7): Row 21 (zero-rated, requires VIES-verified VAT number, transport proof). Intra-EU B2B services (ZDDS Art. 21(2)): Row 22 (place of supply is customer's country). International transport (ZDDS Art. 30-32): Row 20. (ZDDS Art. 28, Art. 7, Art. 21(2), Art. 30-32)

5.4 Exempt without credit

• Exempt without credit categories — Financial services (Art. 46), insurance (Art. 47), healthcare (Art. 39), education (Art. 41), residential rental first letting (Art. 45), gambling (Art. 48), postal universal service (Art. 49). These are excluded from the return — no output DDS, no input deduction on related costs. (ZDDS Art. 46, 47, 39, 41, 45, 48, 49)

5.5 Local standard purchases

• Local standard purchases — Input DDS on a compliant tax invoice (данъчна фактура) from a BG supplier is deductible for purchases used in taxable business activity. Subject to blocked-input rules (5.12). Map to Row 40.

5.6 Reverse charge — EU services received (ZDDS Art. 82(2))

• Reverse charge EU services received — Service from EU supplier invoiced at 0% with reverse-charge note: output DDS self-assessed at 20% in Row 14, input DDS in Row 43. Net zero for fully taxable client. If the EU supplier charged their local VAT, that is NOT reverse charge — treat as overhead with irrecoverable foreign VAT. (ZDDS Art. 82(2))

5.7 Reverse charge — EU goods received (ZDDS Art. 84)

• Reverse charge EU goods received — Physical goods from EU supplier: output DDS self-assessed in Row 13, input DDS in Row 41. (ZDDS Art. 84)

5.8 Reverse charge — non-EU services received (ZDDS Art. 82(2))

• Reverse charge non-EU services received — Services from outside EU with no VAT charged: same treatment as EU reverse charge. Output in Row 14, input in Row 43. (ZDDS Art. 82(2))

5.9 Imports (ZDDS Art. 56)

• Imports — Physical goods imported from non-EU: import DDS assessed by customs on the customs declaration. Input DDS on import in Row 42 if goods are for taxable business use. (ZDDS Art. 56)

5.10 Capital goods adjustments (ZDDS Art. 79)

• Capital goods adjustments — Movable capital goods: 5-year adjustment period. Immovable property: 20-year adjustment period. No specific monetary threshold — asset classification based on accounting standards (useful life > 1 year). If client disposes of or changes use, adjustment may be required. (ZDDS Art. 79)

5.11 3-period excess credit offset (ZDDS Art. 92)

• 3-period excess credit offset — Bulgaria has a unique rule: if input DDS exceeds output DDS, the excess is NOT immediately refundable. It must be offset against output DDS due in the next 3 consecutive periods. Only if excess remains after 3 periods is it refundable. Exception: accelerated refund for businesses with >30% zero-rated supplies. (ZDDS Art. 92)

5.12 Blocked input DDS (ZDDS Art. 70)

• Blocked input DDS categories — The following have restricted or zero recovery: - Passenger vehicles (up to 8+1 seats) and their fuel/maintenance — blocked unless used exclusively for taxable business, taxi/rent-a-car, 6+1 seat exception (Art. 70(1)(4-5)) - Goods/services for entertainment/representation — input DDS IS deductible, but subject to 10% expense tax under ZKPO - Goods for personal use of staff/owners (Art. 70(1)(2)) - Goods/services not used for taxable supplies (Art. 70(1)(1)) (ZDDS Art. 70)

5.13 Sales — local domestic (any rate)

• Sales local domestic — Charge 20% or 9% as applicable. Report in sales ledger and Rows 11/12.

5.14 Sales — cross-border B2C

• Sales cross-border B2C — Services to EU consumers above EUR 10,000 threshold: R-EU-5 (OSS refusal) from eu-vat-directive fires. Below threshold: Bulgarian DDS at applicable rate.

5.15 Purchase/sales ledgers (ZDDS Art. 124-126)

• Purchase/sales ledgers — Both the purchase ledger (dnevnik za pokupkite) and sales ledger (dnevnik za prodazhbite) MUST be submitted with the return. Each invoice must be individually recorded. (ZDDS Art. 124-126)

6.1 Fuel and vehicle costs

• Fuel and vehicle costs — Pattern: OMV, Shell, Лукойл, Petrol, EKO, fuel receipts. Why insufficient: vehicle type and business-use unknown. Passenger car fuel blocked unless 100% business or qualifying vehicle. Default: 0% recovery. Question: "Is this a passenger car (restricted) or a commercial vehicle/qualifying vehicle used 100% for business?"

6.2 Restaurants and entertainment

• Restaurants and entertainment — Pattern: any restaurant, café, bar, catering name. Why insufficient: representation expenses deductible for DDS but trigger 10% expense tax. Business vs personal unknown. Default: block input DDS. Question: "Was this a business representation expense? (Note: if yes, input DDS deductible but 10% expense tax applies under ZKPO.)"

6.3 Ambiguous SaaS billing entities

• Ambiguous SaaS billing entities — Pattern: Google, Microsoft, Adobe, Meta, Slack, Zoom, etc. Why insufficient: same brand bills from IE, US, or local entity. Default: non-EU reverse charge. Question: "Check the invoice for the legal entity name and billing country."

6.4 Round-number incoming transfers from owner-named counterparties

• Round-number incoming transfers from owner-named counterparties — Pattern: large round credit matching client's name. Default: exclude as owner injection. Question: "Is this a customer payment, your own money, or a loan?"

6.5 Incoming transfers from individual names

• Incoming transfers from individual names — Pattern: incoming from private-looking counterparties. Default: domestic B2C sale at 20%. Question: "Was this a sale? Business or consumer? Country?"

6.6 Incoming transfers from foreign counterparties

• Incoming transfers from foreign counterparties — Pattern: foreign IBAN or foreign currency. Default: domestic 20%. Question: "B2B with VAT number, B2C, goods or services, which country?"

6.7 Large one-off purchases (capital goods tracking)

• Large one-off purchases (capital goods tracking) — Pattern: equipment, laptop, machinery. Why insufficient: no statutory DDS threshold but accounting classification determines adjustment period. Default: deductible; flag for capital goods register. Question: "Confirm useful life > 1 year for capital goods tracking."

6.8 Mixed-use phone, internet, home office

• Mixed-use phone, internet, home office — Pattern: Vivacom, A1, Yettel personal lines; home electricity. Default: 0% if mixed without declared %. Question: "Dedicated business line or mixed-use? Business percentage?"

6.9 Outgoing transfers to individuals

• Outgoing transfers to individuals — Pattern: outgoing to private-looking names. Default: exclude as drawings. Question: "Contractor with invoice, wages, refund, or personal transfer?"

6.10 Cash withdrawals

• Cash withdrawals — Pattern: ATM, теглене, cash withdrawal. Default: exclude as owner drawing. Question: "What was the cash used for?"

6.11 Rent payments

• Rent payments — Pattern: наем, rent, lease. Default: no DDS (residential default). Question: "Commercial or residential? Does landlord charge DDS?"

6.12 Foreign hotel and accommodation

• Foreign hotel and accommodation — Pattern: hotel charged abroad. Default: exclude from input DDS. Question: "Was this a business trip?"

6.13 Credit brought forward and 3-period offset

• Credit brought forward and 3-period offset — Pattern: excess credit from prior periods. Why insufficient: must track the 3-period offset chain. Default: flag for reviewer. Question: "Which period did the excess credit originate? Has it been offset for 3 consecutive periods?"

Section 7 — Excel working paper template (Bulgaria-specific)

The base specification is in vat-workflow-base Section 3. This section provides the Bulgaria-specific overlay.

Sheet "Transactions"

Columns A–L per the base. Column H ("Row code") accepts only valid Bulgaria DDS row codes from Section 1 of this skill. Use blank for excluded transactions.

Sheet "Row Summary"

Row Summary formulas

Output DDS:
| 11 | Output DDS domestic 20% | =SUMIFS(Transactions!F:F, Transactions!H:H, "11") |
| 12 | Output DDS domestic 9% | =SUMIFS(Transactions!F:F, Transactions!H:H, "12") |
| 13 | Output DDS intra-EU goods | =SUMIFS(Transactions!F:F, Transactions!H:H, "13") |
| 14 | Output DDS reverse charge services | =SUMIFS(Transactions!F:F, Transactions!H:H, "14") |
| 20 | Zero-rated exports | =SUMIFS(Transactions!E:E, Transactions!H:H, "20") |
| 21 | Intra-EU supplies goods | =SUMIFS(Transactions!E:E, Transactions!H:H, "21") |
| 22 | Intra-EU services | =SUMIFS(Transactions!E:E, Transactions!H:H, "22") |
| 01 | Total output DDS | =SUM(Row11..Row15) |

Input DDS:
| 40 | Input DDS domestic | =SUMIFS(Transactions!F:F, Transactions!H:H, "40") |
| 41 | Input DDS EU goods | =SUMIFS(Transactions!F:F, Transactions!H:H, "41") |
| 42 | Input DDS imports | =SUMIFS(Transactions!F:F, Transactions!H:H, "42") |
| 43 | Input DDS reverse charge services | =SUMIFS(Transactions!F:F, Transactions!H:H, "43") |
| 31 | Total input DDS | =SUM(Row40..Row43) |

Settlement:
| 50 | Net DDS (Row 01 - Row 31) | =Row01-Row31 |
| 70 | DDS payable (if 50 > 0) | =MAX(0, Row50) |
| 60 | Excess credit (if 50 < 0) | =ABS(MIN(0, Row50)) |

Sheet "Return Form"

Final return-ready figures. Bottom-line: Row 70 (payable) or Row 60/80 (excess credit / refundable after 3-period offset).

Color and formatting conventions

Per the xlsx skill: blue for hardcoded values, black for formulas, green for cross-sheet references, yellow background for any Default? = "Y" row.

Section 8 — Bulgaria bank statement reading guide

Follow the universal exclusion rules in vat-workflow-base Step 6, plus these Bulgaria-specific patterns.

CSV format conventions. UniCredit Bulbank and DSK exports typically use semicolon delimiters with DD.MM.YYYY dates. Revolut Business exports use ISO dates. Common columns: Date, Description, Debit, Credit, Balance. Fibank may use Cyrillic headers.

Bulgarian/Cyrillic variants. Descriptions may be in Bulgarian Cyrillic: наем (rent), заплата (salary), лихва (interest), превод (transfer), теглене (withdrawal). Treat as English equivalent.

Internal transfers. Own-account transfers between client's banks. Labelled "вътрешен превод", "own transfer". Always exclude.

Sole trader draws. A self-employed person (ET — едноличен търговец) cannot pay themselves wages — transfers to personal account are drawings. Exclude.

Refunds and reversals. Identify by "възстановяване", "refund", "сторно", "reversal". Book as negative in same row as original.

Foreign currency. Convert to BGN at the BNB (Bulgarian National Bank) fixing rate for the transaction date. Note the rate in the Notes column.

IBAN prefix. BG = Bulgaria. IE, LU, NL, FR, DE = EU. US, GB, AU, CH = non-EU.

9.1 Entity type and trading name

• Entity type and trading name — Inference rule: ET = sole trader; OOD/EOOD = limited company. Fallback: "Are you a sole trader (ET), limited company (OOD/EOOD), or other?"

9.2 DDS registration status

• DDS registration status — Inference rule: if filing a DDS return, they are registered. Fallback: "Are you DDS-registered (mandatory or voluntary)?"

9.3 DDS number

• DDS number — Inference rule: BG-format numbers may appear in EU customer payment descriptions. Fallback: "What is your DDS number? (BG + 9/10 digits)"

9.4 Filing period

• Filing period — Inference rule: first and last transaction dates. Bulgaria is always monthly. Fallback: "Which month does this cover?"

9.5 Industry and sector

• Industry and sector — Inference rule: counterparty mix. Fallback: "What does the business do?"

9.6 Employees

• Employees — Inference rule: DOO/ZO outgoing payments. Fallback: "Do you have employees?"

9.7 Exempt supplies

• Exempt supplies — Inference rule: medical/financial/educational income patterns. Fallback: "Do you make exempt supplies?" If yes and non-de-minimis: R-BG-2 refuses.

9.8 3-period excess credit status

• 3-period excess credit status — Inference rule: not inferable from single period. Fallback: "Do you have excess DDS credit carried forward? From which period?"

9.9 Cross-border customers

• Cross-border customers — Inference rule: foreign IBANs on incoming. Fallback: "Do you have customers outside Bulgaria? EU or non-EU? B2B or B2C?"

9.10 Vehicle ownership

• Vehicle ownership — Inference rule: fuel/vehicle-related debits. Fallback: "Do you own/lease a vehicle for business? Type (passenger car vs commercial)?"

Sources

Primary legislation:

1. Zakon za danak varhu dobavenata stoynost (ZDDS — VAT Act) — Articles 2-12, 28-50, 56, 66, 70, 73, 79, 82, 84, 92, 124-126
2. Pravilnik za prilagane na ZDDS (PPZDDS — Implementing Regulations)

NRA guidance: 3. NRA DDS return form and instructions — https://portal.nra.bg 4. NRA guidance on reverse charge 5. NRA SAF-T implementation guidance

EU directive (loaded via companion skill): 6. Council Directive 2006/112/EC — via eu-vat-directive companion skill 7. Council Implementing Regulation 282/2011

Other: 8. VIES validation — https://ec.europa.eu/taxation_customs/vies/ 9. BNB exchange rates — https://www.bnb.bg

Known gaps

1. The supplier pattern library covers common Bulgarian counterparties but not every local SME.
2. The 3-period offset rule for excess credits requires period-by-period tracking beyond this skill's single-period scope.
3. SAF-T filing requirements (phased from 2026) are not fully detailed.
4. The 9% reduced rate scope should be verified annually.
5. BGN-to-EUR transition (target date) may affect currency handling.

Change log

• v2.0 (April 2026): Full rewrite to Malta v2.0 structure. 10-section layout. Supplier pattern library with Bulgarian banks (UniCredit Bulbank, DSK, Fibank). No inline tier tags. Companion skill references added.
• v1.0 (April 2026): Initial skill with inline tier tags.

Self-check (v2.0)

1. Quick reference at top with row table and conservative defaults: yes.
2. Supplier library as literal lookup tables: yes (14 sub-tables).
3. Worked examples (6): yes.
4. Tier 1 rules compressed without inline tags: yes (15 rules).
5. Tier 2 catalogue compressed: yes (13 items).
6. Excel template specification: yes.
7. Onboarding as fallback only: yes (10 items).
8. All Bulgaria-specific refusals present: yes (R-BG-1 through R-BG-6).
9. Reference material at bottom: yes.
10. No inline [T1]/[T2]/[T3] tags in body text: yes.

End of Bulgaria VAT Return Skill v2.0

This skill is incomplete without BOTH companion files loaded alongside it: vat-workflow-base v0.1 or later AND eu-vat-directive v0.1 or later.

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional before filing or acting upon.

The most up-to-date, verified version of this skill is maintained at openaccountants.com.