Registration under Art. 97a of the VAT Act – Accounting Assistance for Successful Business

What is registration under Art. 97a of the VAT Act – Facebook, Google, Stripe!?

Registration under Art. 97a of the VAT Act is a vital step for any company that provides or receives certain services within the European Union (EU) or outside it. This registration ensures that your business complies with legal requirements and enables you to operate seamlessly in an international environment. If you are unsure whether your company needs registration, the team at ABC Consult Accounting Firm will assist you with professional advice and comprehensive support.

Why is registration under Art. 97a important?

As part of Bulgaria’s VAT legislation, registration under Art. 97a plays a key role for companies working with international clients or suppliers. This includes:

Providing services to taxable persons within the European Union.
Receiving services from suppliers outside the EU.
Receiving taxable services with a place of supply within the territory of Bulgaria.

Registration is mandatory, and failure to comply with the requirements can lead to sanctions, which could be a serious financial blow to your company.

When is registration under Art. 97a necessary?

To understand if your company needs registration under Art. 97a, it is important to determine the following:

Do you perform services for clients in the EU?
If you provide services to taxable persons in another EU member state, registration under Art. 97a is mandatory.
Do you receive services from suppliers outside Bulgaria?
When receiving services from foreign suppliers where the place of supply is in Bulgaria, your company must be registered.
Do you perform services outside the EU?
If you offer services to taxable persons outside the EU, registration under Art. 97a is not required. This is one of the few exceptions to this rule.

Professional advice on registration

Registration under Art. 97a is not just an administrative step, but a means of ensuring tax transparency. Even small firms working with international partners can be affected. For example, if you receive a consulting service from a company established outside the EU, you as the recipient are obliged to declare the service in your ledgers. To avoid sanctions and operate according to the law, ensure that your accounting team understands the specifics of the law. If you are unsure, contact ABC Consult Accounting Firm for a detailed consultation. This will ensure that your business remains protected.

Main requirements and documents

What do you need for registration?

The procedure for registration under Art. 97a can be complex, especially for new companies. To facilitate the process, here are the main requirements:

Completion of an application for registration with the National Revenue Agency (NRA).
Turnover statement
Data on services performed and received that fall within the scope of the law, and others.

Our team at ABC Consult Accounting Firm can prepare and submit all necessary documents on your behalf, saving you time and effort.

Advantages of registration under Art. 97a

Registration under Art. 97a is not only an obligation but also an opportunity for your business development. Here are some of the benefits:

Expansion of business opportunities:
Easy and legal provision of services to international clients – working with

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Compliance with legislation:
Avoidance of fines and sanctions related to non-compliance with VAT rules.
Increased transparency:
Your business will be perceived as a reliable partner at an international level.
Enhancing international reputation:
Registration under Art. 97a not only protects against fines but also makes you a reliable partner for international clients. Companies in the EU often require proof of tax compliance, and registration demonstrates your legal and financial stability. Furthermore, your foreign clients will have greater confidence that they are working with a firm that complies with all local and international legal requirements. This can be a decisive factor in closing deals and attracting new partners. With our help, you can derive maximum benefit from the registration.

With our support, you will go through all the steps without stress.

How do purchase and sales ledgers work?

After registration under Art. 97a, you will need to maintain records through purchase and sales ledgers. This includes:

Purchase ledger:
For reference – ABC Consult.
Sales ledger:
Reflects services provided to clients in the EU, according to Art. 21, Para. 2 of the VAT Act, and more.

Accuracy in reporting:
Following registration under Art. 97a, accurate reporting in the purchase and sales ledgers is of key importance. Every issued or received document must be correctly entered to avoid sanctions. For example, for services performed for clients in the EU, it is important to correctly reflect the data according to legal requirements. Irregularities or incomplete entries can lead to audits and administrative problems. ABC Consult Accounting Firm offers not only assistance with registration but also professional management of your accounting registers, ensuring peace of mind for your business. Trust the experts who know every detail of the law.

How to terminate the registration?

If your company no longer performs activities requiring registration under Art. 97a, you can submit an application for deregistration. This is possible when there are no current supplies or received services that fall under the scope of the law.

Services for which registration is not required

Services for clients outside the EU.
Supplies that are not taxable according to the law.
Sales up to the threshold for mandatory VAT registration for sales within the territory of Bulgaria.

Why choose ABC Consult Accounting Firm?

Our mission is to ensure smooth and trouble-free management of your tax obligations. With us, you receive:

Professionalism and experience:
Years of successful work with small and large companies.
Individual approach:
Personalized solutions according to your business needs.
Comprehensive support:
From registration to ongoing reporting – we are by your side.