Changes to VAT invoicing rules have been published in the State Gazette and will come into force on 1 January 2013.
The changes are to make the VAT Act comply with EU Directive 2010/45. The most important are:
The Bulgarian invoicing rules shall apply if the place of supply is in Bulgaria. There is an exception to this general rule if the VAT is payable by the supplier and the supplier is established in another member state.
Bulgarian VAT rules also apply when VAT is payable by the recipient and the place of supply is in another member state if the supplier is established or has a fixed base in Bulgaria, and any fixed base it has in the other member state (if any) does not participate in the supply. These rules do not apply to self-invoicing.
The Bulgarian supplier must indicate that the VAT is reverse-charged. It is not necessary to state the legal grounds.
The new rules allow one invoice to be issued for all VAT-able supplies to the same person in the same period. The supplies must be separately specified and the invoice must be issued in the same month as the supply.
VAT invoices for amounts below €100 do not need to state some information that is usually required, such as the VAT rate and the amount due for payment. There is no cap for the amount on credit notes. These rules do not apply to intra-Community supplies or distance sales.
Self-invoicing will be allowed if there is a preliminary agreement between the parties and a procedure for acceptance of the invoice/note by the supplier. It is likely that this change to the VAT Act will be followed by changes to the Regulations for application of VAT Act.
Electronic invoices/credit notes are treated equally with paper invoices/credit notes. Electronic invoices and credit notes may only be issued where the recipient agrees. Electronic invoices are considered issued at the moment they are provided to the recipient.
Persons should be able to guarantee the authenticity of the origin, the integrity of the content and the legibility of the invoices and the credit note. This will be achieved by control that creates a reliable audit trail between the invoice and the supply. Technologies that are allowed to ensure integrity of the content and the readability are the qualified electronic signature and the electronic data interchange (EDI). The above requirements should be fulfilled by both the supplier and the recipient.
All persons should provide on-line access to the tax documentation that they keep electronically both to the Bulgarian revenue authorities and to those of another Member State.
Law: Value Added Taxes Act; Directive 2010/45/EU