The experienced chartered accountants of VARNAFLATS.EU Ltd. can assist you with accounting services, tax advice and assistance to obtain tax residence of Bulgaria.
One of first and most important question for people looking to establish a company in Bulgaria is: “What are the accountancy fees in Bulgaria?”. You will often get this question answered with: “That depends, we need some more information before we can tell you”. And yes it actually depends on a few basic things: number of personnel, number of invoices and whether your company is VAT registered.
Annual Accounting fees in Bulgaria
Prices for 2024
| Monthly Documents | Before VAT registration | After VAT registration |
|---|---|---|
| Minimalist light | ||
| up to 10 docs | 100 € | 200 € |
| Minimalist | ||
| up to 20 docs | 200 € | 400 € |
| Professional | ||
| up to 50 docs | 300 € | 400 € |
| Business | ||
| up to 100 docs | 500 € | 600 € |
| Enterprise | ||
| up to 150 docs | 700 € | 800 € |
| Bulk | ||
| up to 1000 docs | 1,000 € | 1,400 € |
| up to 5000 docs | 1.400 € | 1,600 € |
| up to 10000 docs | 3,600 € | 4,800€ |
| up to 20000 docs | 4,200 € | 6,000 € |
If you believe that our monthly accounting packages are too broad and they do not fit your business needs, please contact us for an individual offer.
The above Accounting & Bookkeeping service fees apply if you prepay twelve months services. Prepaying twelve months accounting services, you get two months free.
If your company is VAT registered but it is not actively trading, we can assist you with the monthly VAT declaration for only 25 € monthly or 250 € if prepaid for 12 months’ service.
Benefits of using our Bookkeeping & Payroll services
- If you incorporate a Bulgarian company with us, you will get 2 months free accounting services;
- Purchasing our accounting services in Bulgaria, we will assist you to obtain certificates S1 and A1 free of charge;
- Our accounting packages include monthly Balance, Profit & Loss Accounts, Cash Flow Report and Own Capital Report in English;
- You can upgrade or downgrade your monthly accounting plan any time, paying the difference between the two packages;
- If you change your current Bulgarian Accountant with us, you will get 3 months free accounting services in Bulgaria (if prepaid 12 months accounting services);
- Shifting your accounting work to us, we may assist you to change your registered office address for free of charge;
- Prepaying twelve months accounting and bookkeeping services, you get VAT and EORI registration for free;
Frequently Asked Questions
When is VAT registration required?
VAT registration is not required if the turnover is up to BGN 50 000. However, there is a requirement that if a company provides services to VAT-registered customers from another EU Member State, it must be registered for VAT seven days prior to the service, its invoicing, and payment. If the company is not VAT registered, VAT will be charged on the invoice for purchases from the EU. When a Bulgarian company that is VAT registered carries out transactions with VAT-registered companies in another EU Member State, VAT is not charged. For services from third parties (non-EU Member States), VAT is not due. In the case of transactions with third parties with goods, customs must be passed.
What is the procedure for VAT registration?
After submitting an application for VAT registration within seven days, the requested documents from the National Revenue Agency must be submitted, which include a turnover statement 12 months before the current one, bank statements at the time of filing the application, contract for using of the address of registration in the Commercial Register of the company, an accounting service contract, and a power of attorney. After submitting all the documents to the NRA, the person is registered for VAT up to seven days.
What happens after the VAT registration?
All purchase invoices, sales invoices, and bank statements must be sent until 10th of the month. The VAT declaration is submitted by the 14th of the following month.
How VAT can be refunded?
VAT refunds are made three months after the first refund occurs.
Self-insured person in Bulgaria
Any person who is the owner and manager can be insured as a self-insured person on a minimum insurable income of BGN 610,00 in 2020 up to a maximum insurable income of BGN 3000,00. The amount of social security contributions for SSS, SM, and SMPS per month is 27.8% of the selected insurance income. In this case, the person does not receive a salary and, accordingly, the insurances are not recognised as the company’s expense.
Example:
For a month:
| Revenue | BGN 5000,00 |
| Expenses | BGN 0,00 |
| Profit | BGN 5000,00 |
| Tax profit of 10% paid for the calendar year until 31.03 of the next year | BGN 500,00 |
| Insurances for the month on the minimum insurance threshold of BGN 560,00 | BGN 155,68 |
| Dividend tax of 5% | BGN 225,00 |
| Total taxes and insurances due for a month | BGN 655,68 |
Salary
When a person chooses to be insured through a labour contract, each occupation and position in a different economic activity has a minimum salary threshold. In this case, the gross salary is deducted at the expense of the worker, then the DOD is deducted from the salary, and the rest is transferred to the employee. At the same time, insurances at the expense of the employer are also due. Salary in Bulgaria can be paid in cash every month as the worker signs up on a salary payroll and a payslip that states that he has received his salary in cash. When the salary is transferred via bank, a signature is not required as it is visible from the bank account statement.
Example:
| Gross salary | BGN 1000,00 |
| Insurances at the expense of the employee – 13,78% | BGN 137,80 |
| Income tax levied | BGN 862,20 |
| Income tax – 10% | BGN 86,22 |
| Total deductions at the expense of the employee | BGN 224,02 |
| Amount to be paid to the employee | BGN 775,98 |
| Insurances at the expense of the employer – 18,92% | BGN 189,20 |
| Total amount of insurances due monthly | BGN 413,22 |
| Amount recognised as company expense monthly | BGN 1189,20 |
For a month:
| Revenue | BGN 5000,00 |
| Expenses | BGN 1189,20 |
| Profit | BGN 3810,80 |
| Tax profit of 10% paid for the calendar year until 31.03 of the next year | BGN 381,08 |
| Dividend tax of 5% | BGN 171,49 |
| Total taxes and insurances due for a month | BGN 794,30 |
The selection from the two options depends on the realized turnover.
It must be kept in mind that the maximum insurable income is BGN 3000,00, which means that in the case of a salary over this amount, the insurances are due to BGN 3000,00, and only income tax is due on the whole amount.
Example:
| Gross salary | BGN 10000,00 |
| Insurances at the expense of the employee – 13,78% х BGN 2600,00 | BGN 413,40 |
| Income tax levied | BGN 9586,60 |
| Income tax – 10% | BGN 958,66 |
| Total deductions at the expense of the employee | BGN 1372,06 |
| Amount to be paid to the employee | BGN 8627,94 |
| Insurances at the expense of the employer on the salary – 18,92% х BGN 2600,00 | BGN 567,60 |
| Total amount of insurances due monthly | BGN 1939,66 |
| Amount recognised as company expense monthly | BGN 10567,60 |
Appointment and termination of employment
The number and the date of conclusion of the contract, the gross salary, the occupation, and the economic activity of the company are announced to the NRA. The starting date must be at least one day before the start date. Nothing can be done retrospectively in the labour contracts. The labour relations are terminated at most seven days afterwards.
Payment of social security contributions
All contributions are due by the 25th of the following month.
Profit tax and dividends
After the end of the calendar year, by 31st March of the following year, an annual tax return, an annual financial statement for statistics, and profit tax of 10% must be paid. It is offset by the realized profit, and the remaining amount can be distributed as a dividend to the owner by paying 5% of the distributed amount. The rest is transferred to the owner’s personal bank account. If revenue is EUR 90,000 per year and no costs, tax will be 10%, EUR 9,000, due until March 31st of the following year. After tax deduction, the remaining amount of EUR 81,000 may be distributed as a dividend at a desired time and a 5% dividend tax, EUR 4050, must be paid. If the company has costs, they are deducted from the revenue, and then the corresponding taxes are charged – 10% profit tax and 5% dividend tax.
After submitting an annual tax return to the NRA and an annual report to the NSI by March 31st of the following year, the annual financial statement is published in the Commercial Register by June 30th, for which BGN 42,00 is paid.
Companies that have no activity during the calendar year do not submit an annual tax return to the NRA but submit a declaration of inactivity to the NSI and the Commercial Register by March 31st of the following year for which no fee is due.
Our clients’ portfolio
Our accounting firm mainly assists small and medium sized companies based in the their home countries or in Sofia and Varna regions in Bulgaria and doing business in the following fields:
- IT services
- International trade (export and import)
- Transport
- Manufacturing
- Real Estate and Construction
- Tourism and catering
- Car rental service
- Agriculture
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