Accounting services and VAT
Accounting is the periodic registration and reporting of the business deals, closed in a certain enterprise, while observing the provisions of Bulgaria’s Accountancy Act, national and international accounting standards. Accounting allows a given company to analyze its financial results from its line of business on the grounds of different indicators, like for example a net profit (a profit for a period). In book-keeping, we keep an account of every balance sheet item. Accounts are systemized in a chart of accounts (COA). In it, book-keeping accounts are arranged in the following structure: a section, a group and a book-keeping account. Every section incorporates homogeneous in terms of economic essence and functional purpose groups of accounts. The sections are designated with a digital code from 1 to 9.
Vesta Consult draws up an individual chart of accounts for every client, as it fully and accurately reflects the needs of his line of business. You can get a general idea about the contents of our accounting services from our Package Services for Companies.
VAT is an indirect tax. By means of it, one taxes sales, as at the final stage, it is paid by the consumers of a commodity. Its tax rate in Bulgaria is 20%. A seller pays it into our national budget, but in reality it is paid by a purchaser, whereas it is incorporated in the price for goods. To a great extent, VAT determines the level of the prices for goods. At the importation of commodities into the European Union, one levies VAT, so that the commodities manufactured in the Community can be on an equal footing with identical imported goods.
VAT registration is a one-time public act. It can be voluntary and compulsory. The National Revenue Agency set up and keeps a special register under the applicable Bulgarian law. By means of an entry into this register, persons get an identification number for the purposes of VAT, as a “BG” sign is placed before it. Voluntary registration is carried out at the discretion of a trader. Compulsory registration is performed on the legal grounds detailed in the applicable Bulgarian law: with a view to performed activity and whenever a person liable for a tax reaches the taxable turnover of 50 000 BGN. After VAT registration, every liable for a tax person files monthly certificates-statements with the National Revenue Agency (NRA).
In order to get registered under Bulgaria’s VAT Law, every person files an application with NRA and encloses a list of accounting documents. Vesta Consult provides full assistance at the preparation and submittal of documents about registration under VAT Law, as well as at the monthly filing of certificates-statements. For more information, you can review our Package services for companies or get into contact with us, using our contact details.