Amendments to the Corporate Income Tax and VAT Act in Bulgaria

Effective 1st of January 2021 


Changes to the Corporate Income Tax Act were published in the Bulgarian State Gazette no. 104/8 December 2020 and no. 107 of 18 December 2020.  

The changes were in connection to the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community as at 01.01.2021. Additionally, changes were made with regards to the transposition of Directive (EU) 2020/1756 of Council of the 20th of November 2020 amending Directive 2006/112/EC on the common system of VAT, as regards to the identification of taxable persons in Northern Ireland, that entered into force on the 1st January 2021 as follows: 

Submission of the Annual Tax Return and Annual Statistical Activity Report for 2020 1st March – 30th June 2021 
Payment of corporate tax for 2020  1st March- -30th June 2021  
Announcement of Annual Financial Reports to the Trade Register for 2020 30th September 2021
Announcement of Declaration for non-activity for 2020 to Trade Register  30th June 2021
Payment of the last advance corporate tax for 2021 /quarterly and monthly/ for declaring the change of advance corporate tax for 2021 15th November 2021 
Payment of the last advance payment for corporate tax  1st December 2021 

The permissible excess of corporate tax over the determined advance payments has been increased from 20% to 25%, in which case interest for delay is due. 

For the determination of the monthly and quarterly advance corporate tax payments for 2021, the net sales revenues for 2019 will be considered as a basis. 

Newly established companies are not obliged to declare and pay advance corporate tax in the year of their establishment. The same applies for the following year. 

As of the 1st of January 2021, the regulations concerning VAT are not applicable to UK companies since the UK is considered a third country. 

Regarding taxable entities from Northern Ireland, the intra-community deliveries are applicable as of the 1st of January 2021. Northern Ireland companies must have prefix XI of VAT numbers and the transactions will be reported in VIES declarations. It should be noted that the transactions regarding the performance of services will not be reported in VIES declarations.

For additional information with respect to the above mentioned amendments, please contact : Mr. Ioannis Kesisis, Country Manager of Eurofast Bulgaria via email at:    

Eurofast is a regional business advisory organisation employing local advisers in over 23 cities in South East Europe & Middle East (SEEME). The Organisaton is uniquely positioned as one stop shop for investors and companies looking for professional services in South East Europe & Middle East. 

Ioannis Kesisis
Country manager
Eurofast Sofia