How to Issue Invoices Correctly?
An invoice is often prepared at the end of a sale, but the important decisions come earlier. The supplier must identify the actual supply, the relevant date, the customer’s status and the correct VAT treatment. If one of these elements is wrong, a document that looks professional may still be legally or tax-wise incorrect.
To issue invoices correctly in Bulgaria, make the document agree with the contract, delivery evidence, payment information and accounting entries.
Start with the taxable event, not the payment request
As a general rule, an invoice must be issued no later than five days after the taxable event. For goods, this is usually the delivery date. For services, it is commonly the date when the agreed work is completed or accepted.
If an advance is received before the supply, the five-day period normally runs from the receipt date. Do not automatically use the payment date as the supply date.
For an intra-Community supply of goods, the invoice is generally issued by the fifteenth day of the month following the taxable event.
Build the invoice around the mandatory information
There is no single mandatory visual template. Businesses may use accounting software or their own layout, but the required information must be clear.
- The name of the document.
- A sequential ten-digit number using Arabic numerals.
- The date of issue.
- The supplier’s full legal name, address and identification number.
- The supplier’s VAT number, where applicable.
- The customer’s full legal name, address and identification details.
- The customer’s VAT number when relevant to the VAT treatment.
- A specific description of the goods or services.
- The date of supply or advance payment when different from the issue date.
- The taxable amount, VAT and total amount.
- The legal reason for not charging Bulgarian VAT, where applicable.
Use the customer’s registered legal name. Avoid vague descriptions such as “services” or “goods”. Identify the project, period or deliverable.
Decide the VAT treatment before generating the document
Bulgarian VAT registration does not mean that Bulgarian VAT is charged on every invoice. The treatment depends on the supply, customer status, place of supply and movement of goods.
For many B2B services supplied to a VAT-registered business in another EU member state, Bulgarian VAT is not charged. The customer usually accounts for the tax under reverse charge, and the invoice states the correct wording and legal basis. Check exceptions for services connected with property, events and other specially regulated activities.
An intra-Community supply of goods may be invoiced without Bulgarian VAT when the conditions are met. The supplier needs both a valid customer VAT number and reliable evidence that the goods left Bulgaria for another EU member state.
Verify EU customers through VIES
Check the customer’s VAT number in VIES before issuing the invoice. Keep the validation date and reference number when one is provided.
Compare the name and address with the contract. An invalid result may mean that the number is missing, not activated for intra-EU trade or not yet updated in the national database. Request confirmation before invoicing.
Four common situations that need different checks
| Situation | Main check | Typical mistake |
|---|---|---|
| Domestic sale in Bulgaria | Supply date, parties and VAT status | Using the payment date as the supply date |
| Service to an EU business | VIES, place of supply and exceptions | Applying reverse charge without verification |
| Goods delivered to another EU country | VAT number and transport evidence | Relying only on the VAT number |
| Advance payment | Receipt date and invoicing deadline | Waiting for final completion |
Correct errors without editing the original invoice
Do not overwrite or manually edit an issued invoice. Bulgarian VAT rules do not allow corrections or additions. The incorrect document must be cancelled and replaced.
If it has entered the supplier’s or customer’s records, a cancellation protocol is generally required. The audit trail should identify the cancelled and replacement documents.
If a correct transaction changes later, use a debit note for an increase and a credit note for a decrease or cancellation. The note is normally issued within five days of the change.
Do not confuse a proforma with a VAT invoice
A proforma is a preliminary commercial document. It can request payment or confirm an order, but it is not a VAT invoice and does not support input VAT deduction.
When an advance is received or the taxable event occurs, issue the official invoice within the applicable deadline. Keep proformas in a separate numbering sequence.
Adjust invoicing procedures for the euro
Bulgaria adopted the euro on 1 January 2026. Current accounting documentation and records are maintained in euro under the applicable rules, so invoicing and accounting systems must be configured correctly.
Historical invoices are not rewritten because the currency changed. For documents in another currency, review conversion and reporting for the transaction date.
A final control before the invoice is sent
- The number is unique, sequential and has not been reused.
- The issue date and supply date are correct.
- The supplier and customer details match official records.
- The description reflects the actual supply.
- The VAT treatment and legal basis have been reviewed.
- VIES checks and transport evidence are retained where needed.
- The invoice agrees with the contract, payment and supporting documents.
Businesses that invoice different customer types or operate across borders should not rely on one automatic VAT setting. A tax and accounting review by T&G Consulting can help confirm the treatment before the invoice is issued and included in statutory records.
A compliant invoice links the commercial agreement, real supply, VAT position and accounting record. When these elements align, the business is better prepared for customer questions and tax reviews.
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This article provides general information only and does not constitute tax, accounting, or legal advice. Each company situation should be reviewed individually before decisions are made.