SaaS & Software: Bulgaria vs Cyprus VAT Rules

    How VAT obligations differ for saas & software between Bulgaria and Cyprus.

    CriterionBulgariaCyprus
    Standard rate applied20%19%
    Registration thresholdBGN 100,000 (~€51,000)€15,600 annual turnover
    Filing frequencyMonthlyQuarterly
    Invoicing constraintsStandard EU invoice requirements. Invoices must be in Bulgarian or bilingual. Fiscal receipts required for cash sales.Standard EU invoice requirements. Tax invoices must be issued within 30 days of supply. Self-billing allowed.
    Sector-relevant regimesMandatory fiscal device for cash transactions · Reverse charge for grain and waste trading · Special scheme for tour operatorsSpecial scheme for travel agents · Reduced rate for renovation of private dwellings · IP box regime interacts with VAT planning
    Penalty exposurePenalty of 5% of VAT due per month, minimum BGN 500. Criminal liability for large-scale evasion.10% surcharge on late payments. €50 per day penalty for late filing, capped at €1,000.

    Typical use cases

    B2B SaaS
    Business software sold to companies in other EU member states.
    B2C Apps & Services
    Consumer-facing digital services and mobile applications.
    API & Infrastructure
    Developer tools, APIs, and cloud infrastructure services.
    White-Label Solutions
    Resold or white-labeled software platforms.

    Disclaimer : This tool is provided for informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor for decisions regarding your tax situation.Source : EU VAT Directive 2006/112/EC

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