How to Sell Services From Bulgaria With 0% VAT – 2025 Guide
This guide explains how you can legally apply 0% VAT when selling services to clients abroad – whether in the EU or outside. Understanding the rules will help you stay compliant and more competitive internationally.
What Does 0% VAT Mean?
If you provide certain services to clients outside Bulgaria, you may not have to charge Bulgarian VAT. This isn’t a loophole – it’s part of the EU VAT system for cross-border services 🌍. The key factor is where your client is located and what type of service you provide.
When Can You Apply 0% VAT?
1. For EU Business Clients:
- Issue an invoice without VAT;
- Include the note: “Reverse charge – Article 21, Bulgarian VAT Act”;
- Verify their VAT number through the VIES system.
2. For Non-EU Clients:
If your customer is established outside the EU, most business services are considered supplied where the client is located.
That means you issue an invoice without VAT and state “Place of supply outside the EU – Article 21”.
Compliance Steps
- ✅ Verify client data in the VIES system (for EU clients);
- ✅ Submit a monthly VIES return to the National Revenue Agency;
- ✅ Keep documentation proving the client’s location and nature of services.
Which Services Qualify?
- IT and software development 💻
- Consulting and accounting
- Marketing and design
- Online training and digital content
Note: Some exceptions apply, such as real estate or event-related services, which may still be taxed in Bulgaria.
Conclusion
Selling services from Bulgaria with 0% VAT is fully legal and highly advantageous for international business.
With proper documentation and compliance, you can operate globally with confidence.
Contact T&G Consulting today for tailored VAT and accounting support that keeps your business compliant and competitive. 🚀
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