E-invoicing in Bulgaria (2023 Updates)

Electronic invoicing, also known as e-invoicing, is a method of invoicing that allows businesses to exchange invoices electronically, usually in a structured digital format. Bulgaria is likely to become one of the next EU Member States to implement continuous transaction controls (CTCs) mechanisms such as the clearance model, following in the footsteps of successful projects in Italy, France, and Poland.

Currently, Bulgaria uses the post-audit model and only requires those involved in B2G transactions to receive and process invoices, along with some VAT reporting controls.

E-invoicing timeline

• 2009: Companies can voluntarily begin to issue e-invoices

• 2018: E-invoicing is regulated by the Law on Amendments and Supplements to the Public Procurement Act (LASPPA)

• 2019: Due to the transposition of Directive 2014/55/EU, all public organizations in Bulgaria must be able to receive and process electronic invoices according to the European Standard on e-invoicing (EN-16931).

• 4 July 2022: Launch of a 24-month project to use Standard Audit File for Tax (SAF-T) forms

Bulgaria utilizes a post-audit e-invoicing system where both B2G and B2B e-invoicing are voluntary. It merely requires the consent of the client and is to be stored for 6 years. There are speculations that Bulgaria will implement a clearance model, but that has yet to be confirmed.

Requirements for e-invoices

Since e-invoicing is voluntary in Bulgaria, the system is based on bilateral agreements between economic operators and public administrations. An invoice must be sent within 5 days of a taxable supply, and it must be paid within 5 days of the invoice receipt.

E-invoice components

• Date of issue.

• The word "invoice".

• Unique sequential number identifying the invoice.

• If a reverse charge supply: VAT identification number of the person to whom the supply was made and an indication of a reverse charge applies.

• Supplier's full name, address & VAT number.

• Customer's full name, address & VAT number (for supply other than reverse charge supply).

• Description of quantity & type of goods supplied or type & extent of services rendered.

• Date of transaction or payment (if different from invoice date).

• The VAT rate applied & amount payable.

• Unit price of goods or services, exclusive of tax, discounts, or rebates (unless included in the unit price).

3 ways to validate the integrity and authenticity of a Bulgarian invoice

1. E-signature - requires a buyer's validation upon receipt

2. Electronic Data Interchange (EDI)

3. Any other Business Controls Audit Trail

Central Automated Information System for Electronic Public Procurement (CAIS EPP)

The Central Automated Information System for Electronic Public Procurement (CAIS EPP) is developed as a national platform for electronic public procurement, and the Law for Amending and Supplementing the Public Procurement Act (LASPPA) guarantees that the EU's e-invoicing Directive's requirements are implemented.

The portal is split into 3 user groups:

1. Economic operator

2. Contracting entity

3. Individual

According to the LASPPA, all users must pay attention to changes in their profiles. In order to make this easier, the CAIS EPP notifies users in the Buyer's Profile on the status of outbound or incoming invoices.

Digital Reporting Requirements

Bulgaria has several obligations for VAT reporting. As per Article 125 of the VAT Act (2006), taxpayers must submit monthly sales and purchase registers with their VAT returns. In 2018, this project was fully digitalized, and they must now be sent electronically.

How DDD Invoices can help your business

Want to connect to CAIS EPP in Bulgaria but don't know how? Here are the benefits of choosing DDD Invoices as your access point:

• Unlock the ability to send and receive e-documents around the world, without worrying about local e-invoicing compliance issues. Through our API, we automatically fill in your invoice data and send the invoice to the proper authorities, letting you focus on your core business processes and we manage the bureaucracy.

• Seamlessly integrate into your current invoicing system, ERP, or CRM in as little as one day. Enjoy an error-free and automated invoicing process through our secure and reliable service.

FAQs for e-invoicing in Bulgaria