Invoicing foreign clients from Bulgaria

Can you invoice foreign clients from Bulgaria?

Yes. Bulgarian freelancers, consultants and companies can issue invoices to clients in the EU, the United Kingdom, the United States and other countries. The important point is not whether the client is abroad, but whether the invoice is treated correctly for Bulgarian accounting, VAT and tax purposes.

This guide focuses on service providers: IT consultants, software developers, designers, marketing consultants, business consultants and small companies providing professional services from Bulgaria.

EU business clients

If you provide services from Bulgaria to a business client established in another EU country, the invoice is often issued without Bulgarian VAT. In many standard B2B service cases, the customer accounts for VAT in its own country under the reverse charge mechanism.

For EU business clients, you should normally request and verify the client’s VAT number. The client’s legal name, address and VAT number should match the information used on the invoice.

A common invoice wording is: Reverse charge. VAT to be accounted for by the recipient.

If you are VAT registered in Bulgaria, some EU B2B services may also have to be reported in the Bulgarian VAT and VIES declarations.

UK, US and other non-EU business clients

For many standard B2B services supplied to companies outside the EU, such as UK, US, Canadian, Swiss or Australian business clients, Bulgarian VAT is often not charged. The invoice still has to be included in your Bulgarian accounting records and the income is normally taxable in Bulgaria.

Non-EU clients are not reported in VIES. However, you should still keep clear client details, contract or engagement confirmation, issued invoices and payment records.

Do you charge Bulgarian VAT?

Not always. This is where many mistakes happen. The fact that you are based in Bulgaria does not automatically mean that Bulgarian VAT is charged on every foreign invoice.

The VAT treatment depends on the type of client, the country where the client is established, the type of service and your VAT registration status. B2B services, B2C services, digital services and local Bulgarian services can have different rules.

For private individuals abroad, the analysis can be different from B2B invoicing. Do not simply copy the treatment used for business clients.

Do you need VAT registration in Bulgaria?

Possibly. Some freelancers assume that VAT registration is only a turnover issue. That is not safe. Cross-border services can create VAT registration obligations even when no Bulgarian VAT is charged on the invoice.

This is especially relevant when a Bulgarian freelancer or company provides services to EU business clients. In practice, you may have to register, submit monthly VAT returns and file VIES declarations, even though your invoice to the foreign client does not show Bulgarian VAT.

For a more detailed explanation, see our guide on VAT registration in Bulgaria when working with foreign clients.

What should the invoice include?

A foreign-client invoice should be clear enough to explain who provided the service, who received it, what was supplied, when it was supplied and how the VAT treatment was determined.

• Invoice number and date.
• Supplier name, address and Bulgarian identification number.
• Supplier VAT number, if VAT registered.
• Client name, address and VAT number, where applicable.
• Clear description of the service and service period.
• Amount, currency and payment details.
• VAT amount or reason why VAT is not charged.
• Reverse charge wording where applicable.

Good descriptions are specific: Software development services for June 2026 or LinkedIn marketing consulting services under monthly retainer. Avoid vague descriptions such as “services” or “consulting”.

Currency and payments

Invoices to foreign clients are commonly issued in EUR, USD or GBP. That is usually practical, but Bulgarian accounting records must still reflect the transaction correctly. Depending on the invoice date and payment date, exchange rate differences may also appear in the accounting records.

Payments through bank transfer, Wise, PayPal, Stripe or similar platforms should be reconciled against the issued invoice and the actual amount received.

Common mistakes

• Issuing invoices to EU clients before checking VAT registration obligations.
• Not verifying the EU client’s VAT number.
• Using reverse charge wording where it does not apply.
• Treating EU and non-EU clients in the same way.
• Using vague invoice descriptions.
• Forgetting that foreign-client income is normally taxable in Bulgaria.

Need help with foreign-client invoicing?

SofiaTax helps freelancers, consultants and foreign-owned companies in Bulgaria with accounting, VAT registration, VAT returns, VIES declarations and annual tax compliance.

If you are planning to invoice clients in the EU, UK, US or other countries, we can review your setup and help you issue invoices correctly from the beginning.

FAQ

Do I charge Bulgarian VAT when invoicing a foreign client?

Not always. The VAT treatment depends on the client, country, service type and your VAT registration status.

Can Bulgarian freelancers invoice clients in the EU, UK or US?

Yes, but VAT registration, reverse charge wording and reporting obligations should be checked before invoicing starts.

Do I need a VAT number to invoice EU business clients?

In many cross-border B2B service situations, Bulgarian VAT registration may be required even if Bulgarian VAT is not charged on the invoice.

Can I issue invoices in EUR, USD or GBP?

Yes. Foreign-currency invoices are common, but they must be recorded properly for Bulgarian accounting and tax purposes.

Is income from foreign clients taxable in Bulgaria?

Usually yes. If you operate through a Bulgarian company or as a Bulgarian self-employed person, foreign-client income is normally part of your Bulgarian tax records.