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Claim a VAT Refund on Your Bulgarian Property

Since the beginning of the year the Government has implemented a number of changes in the procedures of VAT refunds, all of which have intended to facilitate the process and make it a more effective one.


Every owner who has purchased property in Bulgaria through a legal entity could be entitled to a VAT refund.

Those companies that have been set up before 2008 should first be registered and  they could then start the process.

The VAT refund procedure is simple and below we cover the main questions related to this:

How to start?

In order to claim back the VAT from the purchase, one needs to have  a company registered for VAT in Bulgaria. The documents for the VAT registration are should be prepared by expert accountants and the process takes about a month and a half.
Once one’s legal entity has been registered for VAT,  an accountant who will take care of the monthly preparation of the VAT declaration should be appointed.

VAT refunds?

After the procedure of VAT registration has been completed, one may present an application for a VAT refund to the National Revenue Agency. The documents could be deposited either by the investor personally or by his attorney.

If  the claimant decides  to come in person to Bulgaria and go through the procedure alone, they should bear in mind that more than one visit may be be necessary as different documents are needed to be signed at different stages.

It is very important that the claimants do keep any invoices, proof of payments, receipts etc related to the purchase of their property because this will need to be provided as proof together with the VAT refund application

Every rule has some exceptions, of course. For instance, there are clients who have received one invoice and two receipts for three payments made. In such cases the process becomes more complex,
.
How long does it take?

The period for processing of the client’s application from the day he applies is around one month. Once the request has been approved, the return of the VAT should be complete on the specified account within a period of 3 months.

What are the possibilities?

Once the application has been examined by the National Revenue Agency, the latter could decide on either of the following:
To return the whole amount requested
To return a portion of the amount
To return nothing

What happens when the client de-registers from VAT or closes his company?

In both cases he will be obliged to return the refunded VAT. If an investor would like to transfer the VAT refunded sum to an account abroad, he is liable to some taxes.

In today’s world, the people always need more resources, more food, more fun, and more money.

Emil Krotki reveals, that one starts to think of life and money once they are near their end.

The procedure of applying for a VAT refund is a good opportunity one could wish to take advantage of.

Written By HomePoint Bg