Documents issued in connection with sales

            The legislative acts governing the registration and reporting of sales by taxable persons are the Value Added Tax Act (VAT Act), Regulation No. H-18 of 2006 on the registration and reporting of sales in retail outlets via fiscal devices, the requirements for the software used to manage them, and the requirements for persons who make sales via an online shop (Regulation No. H-18 of 13 December 2006, hereinafter referred to as ‘the Regulation’ for brevity), the Personal Income Tax Act (PITA), the Accounting Act, etc.

            Every person, whether registered or unregistered under the Value Added Tax Act, is required to record and report the supplies/sales they have made at a retail outlet by issuing a fiscal receipt from a fiscal device (fiscal receipt) or by issuing a till receipt from an integrated automated retail management system (system receipt), regardless of whether another tax document has been requested and/or by issuing a tax document – an invoice, an invoice note or a report.

            Where the issue of an invoice is not mandatory, it shall be issued at the request of either the supplier or the recipient, and each party is obliged to provide the other party with the necessary assistance for its issue. Where a fiscal or system receipt has been issued, the recipient is obliged to accept it and retain it until they leave the premises.

            Under the Value Added Tax Act, tax documents are:

1. the invoice;

2. invoice note;

3. Minutes.

Tax documents may be issued manually or automatically.

            Issuing tax documents

            Invoices

            Every taxable person — a supplier — is obliged to issue an invoice for the supply of goods or services they have carried out, or upon receipt of an advance payment prior to such supply, except in cases where the supply is documented by a report under Article 117 of the VAT Act.

            A paper invoice must be issued in at least two copies – one for the supplier and one for the recipient. An invoice need not be issued in the following cases:

1. for supplies where the recipient is a natural person who is not liable for tax;

2. for the supply of financial services under Article 46 of the VAT Act;

3. for the supply of insurance servicesunder Article 47 of the Value Added Tax Act;

4. for the sale of airline tickets;

5. in the case of supplies made free of charge;

6. for supplies under the distance sales scheme of goods imported from third countries or territories, or under the non-Union scheme;

7. in respect of supplies made by natural persons not registered under the law, other than sole traders, where the following conditions are met in respect of the supplies they have made:

(a) a document is issued in accordance with the provisions of a specific Act, or

(b) an invoice for amounts paid or a document under Article 9 of the Income Tax Act is issued, or

(c) the issue of a document is not mandatory under the Income Tax Act.

            Where the issue of an invoice is not mandatory, it is issued at the request of either the supplier or the recipient, and each party is obliged to provide the other party with the necessary assistance in issuing it.

            The invoice must include:

1. title of the document;

2. a sequential ten-digit number, consisting solely of Arabic numerals, based on one or more series depending on the taxpayer’s accounting requirements, which uniquely identifies the invoice;

3. date of issue;

4. the supplier’s name and address;

5. the supplier’s identification number under Article 94(2) of the Value Added Tax Act, or the number under Article 84 of the Tax and Social Security Procedure Code – where the supplier is a person not registered under that Act;

6. the name and address of the consignee;

7. the recipient’s identification number under Article 94(2) of the Value Added Tax Act, or the number under Article 84 of the Tax and Social Security Procedure Code – where the recipient is a person not registered under that Act, VAT identification number – where the recipient is registered in another Member State; or another identification number for the person, where such a number is required under the legislation of the country in which the recipient is established;

8. the quantity and type of 100pieces, the type of service;

9. the date on which the taxable event relating to the supply occurred, or the date on which payment was received;

10. the unit price excluding tax and the taxable amount of the supply, as well as any trade discounts and reductions granted, if these are not included in the unit price;

11. the VAT rate, and where the rate is zero – the grounds for its application, as well as the grounds for not charging VAT;

12. the amount of VAT;

13. the amount payable, if it differs from the sum of the tax base and the tax;

14. the circumstances which define the goods as a new means of transport – in the case of an intra-Community supply of new means of transport.

            Corrections and additions to invoices are not permitted. Incorrectly drawn up or amended documents shall be cancelled and new ones issued. Where incorrectly drawn up or amended documents have been recorded in the supplier’s or recipient’s accounting records, a report shall also be drawn up for each of the parties to record the cancellation, which shall contain:

1. the grounds for the annulment;

2. the number and date of the document being cancelled;

3. the number and date of the new document issued;

4. the signatures of the persons who drew up the minutes on behalf of each of the parties.

            All copies of the cancelled documents are retained by the issuer, and their recording by the supplier and the recipient is carried out in accordance with the procedure laid down in the Regulations for the Implementation of the Value Added Tax Act.

            Invoice notes

            In the event of a change to the tax base of a supply or the cancellation of a supply for which an invoice has been issued, the supplier is obliged to issue a notice relating to the invoice. The notice must be issued no later than 5 days after the relevant circumstance arises, and where it is issued in respect of a supply for which an invoice has been issued with tax charged on an advance payment received, within 5 days of the date of the refund, set-off or other form of settlement of the advance payment, for the amount refunded, set off or settled in that other manner.

            Where the tax base increases, a debit note is issued; where the tax base decreases or where supplies are cancelled, a credit note is issued.

            In addition to the mandatory details of the invoice described above, the invoice notification must also contain:

1. the number and date of the invoiceto which the notice relates;

2. the grounds for issuing the notice.

            Corrections and additions to invoice notices are not permitted. Incorrectly drawn up or amended documents shall be cancelled and new ones issued. Where incorrectly drawn up or amended documents have been recorded in the supplier’s or recipient’s accounting records, a report shall be drawn up for each party to record the cancellation, containing:

1. the grounds for the annulment;

2. the number and date of the document being cancelled;

3. the number and date of the new document issued;

4. the signatures of the persons who drew up the minutes on behalf of each of the parties.

            All copies of the cancelled documents are retained by the issuer, and they are accounted for by the supplier and the recipient in accordance with the procedure laid down in the Regulations for the Implementation of the Value Added Tax Act.

           Minutes

            A report must be issued in the following cases:

1. in the cases referred to in Article 82(2), (3), (4), (5) and (6) and Article 84 of the VAT Act – by the registered person who is the recipient of the supply;

2. in the cases referred to in Article 57 of the VAT Act – by the registered importer;

3. in the case of supplies under Article 6(3), Article 7(4), Article 9(3), Article 142(1) and Article 144(4) of the VAT Act – by the registered supplier;

4. in the cases referred to in Articles 161 and 163a(2) of the VAT Act – by the registered person who is the recipient of the supply;

5. in the cases referred to in Article 6(4)(4) of the VAT Act – by a registered person who has supplied foodstuffs free of charge.

            The minutes referred to in paragraph 1 must contain:

1. number and date;

2. the name and identification number, as referred to in Article 94(2) of the Value Added Tax Act, of the person who drew up the report;

3. the quantity and type of goods or the type of service;

4. the date on which the taxable event in respect of the supply occurred;

5. the tax base;

6. the VAT rate;

7. the grounds for charging or not charging VAT by the person who drew up the report;

8. the amount of tax;

9. the supplier’s VAT identification number under which the supply was made, where the supplier is registered for VAT purposes in another Member State, and the invoice number and date – where such an invoice has been issued by the date of issue of the report;

10. the identification number, as referred to in Article 84 of the Tax and Social Security Procedure Code, of the supplier of the goods listed in Annex 2, Part Two of the Value Added Tax Act, and the invoice number and date.

            The protocol shall be issued no later than 15 days from the date on which the tax became chargeable. In cases where foodstuffs are supplied free of charge under Article 6(4)(4) of the Value Added Tax Act, the report shall be issued no later than 5 days from the date on which the foodstuffs were supplied.

            Where there is a change to the tax base of a supply, or where a supply for which a report has been issued is cancelled, the person shall issue a new report, which must contain:

1. the number and date of the original consignment note issued for the delivery;

2. the grounds for issuing the new protocol;

3. the increase/decrease in the tax base;

4. the increase/reduction in tax.

This report shall be issued no later than 15 days from the date on which the relevant circumstance arose.

            Corrections and additions to the minutes are not permitted. Incorrectly drawn up or amended minutes shall be annulled and new ones issued. Where an incorrectly drawn up record has been entered in the recipient’s accounting records, no record shall be drawn up for its cancellation; instead, the reason for the cancellation shall be stated in the incorrectly drawn up record.

            All copies of the cancelled invoices are kept by the issuer, and they are accounted for in accordance with the procedure laid down in the Regulations for the Implementation of the Value Added Tax Act.

            Issuing sales documents from a cash register

            Issuing a fiscal / system receipt

            Every person is required to record and report their sales of goods or services in and from commercial premises by issuing a fiscal receipt (fiscal slip) from a fiscal device (fiscal device) or a cash register receipt (system receipt) issued by the IASUTD (Integrated Automated System for the Management of Commercial Activities),

When may a fiscal/system receipt not be issued? When payment is made by one of the following methods:

• by depositing cash into a current account, by credit transfer, direct debit or cash transfer;
• through a payment service provider within the meaning of the Payment Services and Payment Systems Act,
• by postal money order, carried out through a postal operator licensed to carry out postal money orders within the meaning of the Postal Services Act. Where payment is made by postal money order, the customer shall be provided with a document, in paper or electronic form, containing at least the information specified in Article 26(1)(1), (4), (7) and (8).

The fiscal/system receipt is issued when the payment is made.

            An exception to this obligation applies to sales of goods or services via a fiscal device designed for installation in self-service machines (FUVA), in which case the fiscal receipt recording the sale is displayed only on the screen, without being issued on paper. The fiscal receipt from a fiscal device or the system receipt from the IASUTD is issued in a single copy to the customer. A copy of every sales document printed or generated electronically is stored on the CLEN (Control Tape on Electronic Media).

Issuing a duplicate of a fiscal/system receipt. Fiscal devices permit the issuance of one duplicate for each fiscal receipt, marked with the word ‘DUPLICATE’ printed on a separate line in double-width characters; the duplicate receipt issued is an ‘OFFICIAL RECEIPT’. The duplicate shall be issued only immediately after the last fiscal receipt it duplicates.

            IASUTD issues one duplicate for each system receipt, on which the word ‘DUPLICATE’ is clearly printed on a separate line in double-width characters. The duplicate is issued immediately after the last system receipt it duplicates. It is permissible for the duplicate to be issued at a later stage; in this case, it must contain information regarding the number and date of the system receipt for which it is issued.

            The data from each fiscal/system receipt for a sale or reversal transaction is automatically transmitted by the fiscal device/integrated automated sales tax system via a remote connection to the National Revenue Agency.

Other requirements for fiscal/system receipts

            A fiscal/system receipt may also be an invoice, credit note or debit note, provided it complies with the requirements of the Value Added Tax Act (VATA).

            The fiscal/system receipt must be legible, comply with the template set out in Annex 1 to the Regulation, and contain the mandatory details specified in Article 26 of the Regulation. One of the mandatory details on the fiscal/system receipt is the two-dimensional (QR) code, which must have the visual appearance and technical characteristics set out in Annex 18a of the Regulation. If a retail outlet uses a cash register connected to the Retail Sales Management Software (SUPTO), the fiscal receipt issued must also contain information on the Unique Sales Number (USN) in accordance with Annex No. 29 to the Regulation.

            In the case of a sale for which an invoice or debit note has been issued, specifying the quantity and type of goods or services, the fiscal receipt may show the total turnover by the relevant tax groups and the tax group code, provided that the number and date of the invoice or debit note against which the payment is made must be stated.   The preceding sentence shall not apply in the cases referred to in Article 27(3)(3) of the Regulation.

            In the case of a sale at a discounted or marked-up price, the transaction is recorded in the cash register/IASUTD at the advertised price, after which a ‘percentage or value-based discount or mark-up’ transaction is carried out.

            Where, at the customer’s request, the trader issues a consolidated invoice for purchases made, which are documented by separate fiscal receipts from a fiscal cash register or receipts from an integrated automated sales and tax accounting system, all receipts issued for payments received in respect of the invoice shall be attached to the customer’s copy of the invoice.

            In the case of door-to-door sales, the fiscal receipt is issued by the taxable person and handed over to the delivery person, who is obliged to provide it to the purchaser upon payment, except where payment for the sale is recorded and reported via a mobile fiscal device at the place where the goods or services are supplied.

            When selling or dispensing liquid fuels, the fiscal receipt must contain, in addition to the mandatory details, the following additional information, depending on the type of fuel:

1. the amount of value-added tax on the fuel sold or dispensed;
2. the amount of excise duty on the fuel sold/dispensed;
3. the selling price of the fuel, excluding excise duty and value added tax (net price).

            When registering and reporting road transport operations pursuant to Article 39 of the Road Transport Act (RTA), tickets issued by the FU or the IASUTD shall contain, in addition to the mandatory details under Article 26 of the Regulation, the particulars specified in Article 39(2) of the Road Transport Act.

            When carrying out transactions in foreign currency in cash, non-bank financial institutions and bureaux de change are required to record each transaction by category according to its type:

1. Group ‘A’ – for exchange – the sale of foreign currency where the value of the transaction is equal to the levs received by the bureaux de change;
2. Group ‘B’ – for the exchange of levs for foreign currency – a purchase in which the value of the transaction is equal to the amount of levs received by the buyer.

Important: For every transaction concluded at a currency exchange outlet, currency exchange bureaux must issue a receipt in accordance with the template set out in Annex No. 7 of Regulation No. 4 of 8 August 2003 on the conditions and procedure for entry in the register and the requirements for the operation of currency exchange bureaux, in two copies, one for each of the parties, and a fiscal receipt or, in lieu thereof, an extended fiscal receipt containing all the details of the transaction slip. The currency exchange bureau’s stamp on the transaction slip and the currency cashier’s signature must not obscure the transaction amount.

            Sales documents issued by an online shop

            Persons who sell goods and/or services via an online shop may record and report their sales by issuing a fiscal or system receipt generated electronically, without printing it on paper; they are required to provide it to the customer’s email address and to retain records of its dispatch. An electronic fiscal or system receipt may only be issued for the purpose of recording and reporting sales via an online shop.

            The electronic fiscal/system receipt must conform to the template as set out in Annex 1 to the Regulation, and must contain all the mandatory details specified in Article 26; it is permissible for it not to contain a graphic fiscal logo.

            A person who sells goods or services via an online shop may record and report these sales, instead of using a fiscal or system receipt, by means of a sales registration document that is not issued by a fiscal device or an integrated automated sales tax system (a document under Article 52o of the Regulation, where a remote payment has been made by credit or debit card and provided that:

1. The sales management software(s) meets the requirements set out in Article 52c and
2. For sales made via the online shop, the trader accepts remote payments made by credit or debit card.

            A document recording the sale, which has not been issued by a cash register or an integrated automated sales and tax accounting system (pursuant to Article 52o of the Regulation), must contain the identification details of the person making the sale, the customer order number, the name, quantity and value by type of goods/services supplied, the unit price, the total amount payable and the method of payment, and the reference number of the financial transaction. The trader is obliged to provide the customer with the document thus issued by electronic means (Article 52o(5)).

            A person who sells goods or services for which they accept payment by postal money order, carried out through a postal operator licensed to provide postal money order services within the meaning of the Postal Services Act, shall, with effect from 1 June 2021, provide the customer with a document, either in paper or electronic form, containing at least the following information: their name, identification number and correspondence address;  the name, quantity and value by type of goods/services purchased, the total amount of the sale and the method of payment.

         Receipt from a receipt book

            Sales involving the issuing of a receipt from a receipt book for goods or services are permitted under the Regulation to be documented in the following cases:

1. disconnection of the supply voltage;
2. carrying out an inspection of the cash register by the Bulgarian Institute of Metrology (BIM);
3. whilst the fuel unit is being repaired for the duration specified in the logbook;
4. where the FU/IASUTD has been blocked due to a disruption in the remote connection with the National Revenue Agency, for no more than 48 hours from the time of the block;
5. where the Electronic System with Fiscal Memory (ESFM) has crashed due to a loss of connection between the level-measuring system and the central recording device, with the exception of sales of liquid fuels in tax group ‘B’;
6. in the event of a malfunction of the cash register due to a temporary failure of the sales management software at the retail outlet, until the fault has been rectified; the period during which the software is malfunctioning shall be certified by the person referred to in Article 3 and the person responsible for maintaining the software;
7. a disaster within the meaning of the Disaster Protection Act.
8. in the event of a theft of a cash register at the premises where the theft took place, as recorded by the relevant authorities, for a period not exceeding 7 days.

A receipt from a receipt book is issued in duplicate and contains the details specified in Article 26(1)(1)–(9) and the cashier’s signature. Receipts with duplicate or missing numbers are not permitted.

This documentation procedure does not apply when working with FUVAAS.

           Persons exempt from the obligation to use cash registers

            A person carrying out the following activities is not required to record their sales made at a retail outlet using a cash register or an integrated automated sales and accounting system:

1. sales in or from retail outlets specialising exclusively in newspapers and magazines; 
2. sales of own and unprocessed agricultural produce by natural persons who are not traders within the meaning of the Commercial Act, with the exception of sales on licensed commodity exchanges, auction houses or markets;
3. the sale of tickets, passes and season tickets for passenger transport, where their issue is mandatory under legislation; parking tickets in paid parking zones; and tickets, slips, token and other evidence of participation in games of chance, which contain a face value permanently imprinted at the time of printing and security features, and which are securities. The requirement for a face value permanently imprinted at the time of printing does not apply to blank passenger transport tickets issued on carbonless paper in at least two copies — one for the customer and one for the trader;
4. sales of airline tickets;
5. the sale of goods and the provision of services relating to the conduct of religious, social, educational and healthcare activities by the Bulgarian Orthodox Church and other registered religious denominations under the Religious Denominations Act;
6. activities carried out by landlords who are natural persons and who are not traders within the meaning of the Commercial Act, including those who let out storage premises;
7. the practice of a craft within the meaning of the Crafts Act, with the exception of car mechanics and car repair services, and provided that the persons concerned are craftspeople – disability, long-service or old-age pensioners who provide the services through their own labour and are not traders within the meaning of the Commercial Act;
8. the activities of self-employed professionals;
9. sales in or from retail outlets situated in settlements with fewer than 300 residents and located in high-altitude and remote areas, with the exception of holiday resorts;
10. sales made by foreign legal entities and individuals who are not registered under the Value Added Tax Act during short-term international events (exhibitions, fairs and other similar events), with the exception of events of an entertainment nature;
11. sales in/from retail outlets located in areas where a stable mobile network connection is not guaranteed due to a lack of coverage.

            The following are not required to issue fiscal receipts from a fiscal device or receipts from an integrated automated sales and tax accounting system:

1. the State, and state and local authorities, in respect of all activities carried out by them in their capacity as state or local authorities;
2. banks, when carrying out banking or foreign exchange transactions;
3. payment service providers, financial institutions when carrying out foreign-currency transactions on a non-cash basis, and pension insurance companies.