Updated last 26.03.2021

Which are the types of payment transactions?

Generally there are two types of payment transactions which occur mainly upon payments to suppliers and sales to customers - cash (in case of cash payments) and bank payments (in case of payments with bank cards or via money transfers).

Any supplier who makes sales from a commercial site is obliged to document the sales made by him by issuing a fiscal voucher, except when the payment is made by depositing cash in a payment account, credit transfer, direct debit or cash transfer made by a payment service provider within the meaning of the Payment Services and Payment Systems Act, or by postal money order made through a licensed postal operator for the performance of postal money orders within the meaning of the Postal Services Act.

Important to know

According to the Law on Limiting Payments in Cash, payments exceeding BGN 10 000 should be made only via bank transfer and deposit to payment account, i.e. this is the maximum threshold for payments in cash. The restriction is also in effect for payments in foreign currencies, where the threshold is the Bulgarian lev equivalent in the respective currency; The law provides for material sanction amounting to 50% of the total amount of the payment made upon first offence and 100% of the total amount upon repeated offence.

Which are the main types of transactions to report a cash transaction?

• Fiscal receipt: Each trader is obliged to report the sales made and settled in cash through the issuance of a fiscal cash receipt from a fiscal device (fiscal receipt) or through the issuance of a cash receipt from an integrated automated trade management system (system receipt). The fiscal device should meet the parameters set out in the VAT Act;

• Copy of a fiscal receipt: For each cash receipt printed a copy should be stored on the electronic carrier control tape (ECCT) and the data from each receipt are transmitted automatically from the fiscal device via remote connection to the National revenue agency (NRA);
• Reversal transaction: In case of a claim, returned goods, decrease of the tax base or operator’s mistake, a reversal transaction is required, which is documented by the issuance of a document from the fiscal device with a number which should contain  the unique number of the sale which is reversed.

How is the reporting of the cash transactions administered?

The documentation of sales through fiscal cash receipts is regulated in Art. 118 of the Value Added Tax Act and Ordinance № N-18/2006 on registration and reporting through fiscal devices of sales in retail outlets, the requirements for software for their management and requirements for persons who make sales through an e-shop.

Each trader is obliged to install and put into operation, registered in the NRA, fiscal devices from the date of commencement of the site, as well as to conclude a contract for maintenance and repair of the fiscal device with a person authorized by the Bulgarian Institute of Metrology and holding a service certificate. On the websites of the National Revenue Agency there are registers of the approved fiscal devices and companies for their servicing.

All fiscal devices should meet the requirements specified in Ordinance N-18, and must have the technical ability to establish a remote connection through which to automatically submit data to the NRA. In this regard, as of July 2, 2019, the requirement for traders to print daily financial statements, monthly and annual financial statements, as well as to keep a book of daily financial statements has been dropped. These regulations do not apply to traders who work with an electronic system with fiscal memory for reporting sales of liquid fuels. All fiscal devices automatically generate a full daily financial report and send data about it to the NRA, in compliance with the requirements specified in Ordinance N-18.

Use of Retail Sales Management Software (SUPTO)

SUPTO is any software used to process information for the sale of goods and / or services in a commercial site, for which there is an obligation to issue a fiscal receipt. The NRA maintains a public register of SUPTO, which meet the requirements of Ordinance N-18. Traders are not allowed to use other sales management software that is not included in the NRA register.

Traders who choose to use SUPTO in their stores have the obligation to notify the NRA within 7 days of installing the software. The NRA shall be notified within the same period in case of change of the already declared data. In a commercial site where the obligor has chosen to use software included in the public electronic list of SUPTO, the software must control all working fiscal devices in this site and they can be used only as a fiscal printer.

More information on the use of SUPTO can be found on the NRA website.

E-shops

A person who makes sales through an e-shop, regardless of whether he uses his own domain, leased domain or the domain of another person providing a platform for online sales and who is obliged to issue a fiscal receipt for the received payments is obliged prior to commencement of the sales of goods/services through the e-shop to submit information to the NRA. The information to be submitted is specified in Annex № 33 of Ordinance N-18. The submission of the information shall be done electronically with QES in the Portal for e-services of the NRA.

You can find more about the obligations of the persons who trade through e-shops on the NRA website.

Important to know
	The sanctions which the traders are subject to for violating the rules on the issuance of fiscal receipt and reporting of cash transactions are stipulated in art. 185, art. 185а, art. 185b, art. 186, art. 186a and art. 187 of the VAT Act.

 

For more information
	For more information regarding the reporting and administration of cash transactions and the related legislative framework see in the attached Ordinance No N-18 on the website of the National Revenue Agency.