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State of eInvoicing in Bulgaria
The Public Procurement Act (PPA), as amended by the Law on Amending and Supplementing the Public Procurement Act (LASPPA), legislated the use of e-invoicing and the European standard in Bulgaria as of October 18, 2018. The Public Procurement Agency has created a dedicated portal with detailed guidance on compliance.
According to Art. 115a. (new - State Gazette (SG) 86/18]), in force from November 1, 2019, in the case of payment under public procurement contracts, all contracting entities are obliged to accept and process e-invoicing, this to comply with Directive 2014/55/EU) and implement the European standard on e-invoicing. On July 1, 2020, provisions on electronic means of communication for the evaluation of tenders, conclusion of contracts, orders, invoicing and payment will come into force.
The government's electronic invoice information system (IS EFA) is crucial for B2G e-invoicing. A prototype is available for testing, but full implementation is still pending.
There are several reasons why electronic invoices outperform PDF-based and paper invoices:
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- It improves visibility of invoices and taxes,
- It provides a quick and accurate overview of individual transactions,
- E-invoicing streamlines the invoicing process,
- E-invoicing saves costs in processing and delivering invoices (e.g. printing, postage, etc.),
- Eliminates the need to display invoices on websites,
- It removes barriers for businesses to cross-border communication and electronic invoicing between EU countries.
B2G eInvoicing in Bulgaria
Phased rollout: The first wave of mandatory B2G e-invoicing is expected in Q1 2024 for certain government entities and contracts above €5,000.
Gradual expansion: This mandatory rollout will be expanded in stages, covering more entities and lower thresholds over time. Stay tuned to the Treasury website for specific timelines.
Use of EFA is mandatory: Once fully operational, all government e-invoices must be sent through the IS EFA platform.
B2B eInvoicing in Bulgaria
Voluntary adoption: Although not mandatory, B2B e-invoicing offers numerous benefits such as faster processing, reduced errors and improved cash flow.
Multiple solutions: Businesses can choose from a variety of solutions, including web applications, EDI providers, and specialized software.
Standardized formats: Bulgaria uses the PEPPOL BIS Billing 3.0 format for e-invoicing, ensuring compatibility between different solutions.
Looking Ahead
The e-invoicing landscape in Bulgaria is evolving rapidly. By staying informed about regulations and exploring available solutions, businesses can prepare for the transition and reap the benefits of digital invoicing.
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E-invoicing is becoming increasingly important in both B2B and B2G transactions across Europe. A few years ago, it was mostly voluntary and only those who were aware of the security, convenience and data automation benefits of e-invoicing took advantage of it. Today, if you are a company registered in Bulgaria or have Bulgarian business partners, you need to comply with B2B e-invoicing regulations both in Bulgaria and in your country of registration.
If you need to fulfill the e-invoicing requirements not only in Bulgaria, but also other countries, make sure you choose an international e-invoicing provider. At SPS Commerce, we elevate more than 150 companies around the globe with secure and compliant electronic invoicing solution.
