What is the reverse charge?
A mechanism where the recipient of the service, not the supplier, accounts for VAT. For B2B services between different EU countries the place of supply is where the customer is established (Art. 44 of Directive 2006/112/EC) and the tax is due by the customer (Art. 196).
In Bulgarian law this is Art. 21(2) of the VAT Act. The invoice says “reverse charge” and shows your VAT number; there is no VAT line.
Who pays 20% VAT?
Every customer in Bulgaria — company or private individual. Private individuals in other EU countries also pay VAT, because the mechanism applies only between taxable persons. Customers outside the EU owe no Bulgarian VAT.
That is why we show prices this way: the Bulgarian version of the site includes 20% VAT, the English and Italian versions exclude it, with a note on when it applies.
What do you need for an invoice without VAT?
A valid VAT number, which we check in the European Commission's VIES system before issuing the invoice, and your company details. If the number is invalid or missing, we charge 20%.
The check takes a minute and we do it. You only send the number with your order.
An example with the numbers
“Business” website: €1,890 incl. VAT for a Bulgarian company; €1,575 without VAT for a company in Italy with a valid VAT number, which accounts for Italian VAT at its own rate; €1,890 for a private individual in Italy.
The quote configurator does the maths for your case automatically. This is not tax advice — when in doubt, ask your accountant.
