VIES in Bulgaria: general functioning and role in the European VAT system

In the context of company registration in Bulgaria, managing tax obligations requires particular attention, especially when carrying out transactions with other EU countries. Among these, VIES in Bulgaria is one of the key tools to ensure proper management of intra-community transactions.

In Bulgaria, VIES consists of a mandatory monthly statement for VAT-registered entities that carry out B2B transactions with companies established in other EU Member States. Starting from 2026, with the adoption of the euro, all amounts must be reported exclusively in euros.

It is a control system, not a tax payment mechanism, used by tax authorities to verify the correct application of the zero VAT rate and the reverse charge mechanism in intra-community transactions.

The system is part of the broader European framework of tax cooperation, allowing authorities to cross-check data declared in different Member States and ensuring greater transparency in cross-border operations.

VIES in Bulgaria: obligated entities, types of transactions and operational logic

The obligation to submit the VIES statement is managed by the National Revenue Agency (NRA) and applies to VAT-registered taxpayers carrying out intra-community transactions.

Specifically, companies must submit the declaration if they:

• supply goods to other EU Member States
  
• provide B2B services subject to reverse charge
  
• participate in triangular transactions
  

The obligation lies with the Bulgarian supplier, while the EU customer records the transaction in their domestic system. This enables cross-checking between European tax authorities.

Transactions to be reported include intra-community supplies of goods (requiring proof of transport and valid VAT number of the customer) and B2B services such as consulting, IT or marketing services subject to reverse charge.

Correct classification is essential, as some services may be excluded if deemed taxable in Bulgaria under place-of-supply rules.

Companies operating only domestically, performing B2C sales or dealing exclusively with non-EU countries are not subject to VIES reporting.

Read also: KYC in Bulgaria: what businesses need to know

Deadlines, submission methods and euro adoption in 2026

The VIES declaration is filed monthly and must be submitted electronically by the 14th day of the following month, in alignment with VAT returns.

If no intra-community transactions occur during the month, no declaration is required.

From 1 January 2026, all values must be reported in euros. Businesses still operating in Bulgarian lev must apply the fixed exchange rate of 1.95583, paying close attention to rounding.

Errors in conversion or reporting may lead to discrepancies during tax audits, making it necessary to update accounting systems and internal procedures.

EU VAT number validation, common errors and tax risks

Before issuing invoices or including transactions in the declaration, it is essential to verify the validity of the customer’s VAT number through the official EU system.

Failure to verify VAT numbers is one of the main sources of non-compliance. Additionally:

• “GB” VAT numbers are no longer valid for EU transactions
  
• “XI” numbers apply only to specific cases
  

Common issues include incorrect inclusion of B2C transactions, inconsistencies between VAT returns and VIES statements, misclassification and late submissions.

Consequences may include administrative penalties, increased tax audits and loss of the zero-rate VAT benefit. In some cases, transactions may be reclassified as domestic, applying Bulgarian VAT at 20% plus interest.

Read also: EU Pay Transparency Directive in Bulgaria: what will change by 2026

Advanced tax controls and SAF-T impact

With the introduction of SAF-T in 2026, tax controls will become significantly more advanced.

Authorities will have access to detailed accounting data, improving their ability to verify consistency between records, VAT returns and submitted data.

This increases the importance of accurate and integrated tax data management, especially for companies operating internationally.

Managing VIES obligations correctly requires specific expertise and continuous monitoring of tax and accounting processes.

Accountancy Bulgaria, accountancy company in Bulgaria, supports companies in VIES compliance, VAT management and optimisation of cross-border tax processes.