The indirect taxation system in Bulgaria is relatively harmonized on an EU level. The indirect taxation rules are generally handled at both EU and national level.
When dealing with indirect taxation issues businesses should pay close attention to the related rulings of The Court of Justice of the European Union (the ECJ). The ECJ has the authority to interpret EU law, part of which is the harmonized indirect taxation legislation.
The ECJ rulings are directly applicable and binding for all member states’ courts and institutions. Therefore, any business within the EU, aiming for tax efficiency, should be aware of the ECJ tax rulings.