Accounting Obligations Overview

Every company registered in Bulgaria must maintain proper accounting records in accordance with Bulgarian accounting legislation. This applies regardless of company size, turnover, or whether the company is actively trading. Foreign-owned companies have the same obligations as domestic ones.

Accounting Standards

Bulgarian companies follow one of two accounting frameworks:

• National Accounting Standards (NAS) — used by most small and medium-sized enterprises
• International Financial Reporting Standards (IFRS) — mandatory for publicly traded companies, banks, and insurance companies; optional for others

Most foreign-owned small businesses in Bulgaria use NAS, which are simpler and less costly to implement.

Mandatory Accounting Records

Your company must maintain the following:

• General ledger with all financial transactions
• Journal entries documenting each transaction
• Asset register for fixed assets and depreciation
• Payroll records if you have employees
• VAT ledgers (purchase and sales) if VAT-registered
• Inventory records for companies holding stock
• Bank statements reconciled with accounting records

All records must be kept in Bulgarian and in Bulgarian Leva (BGN).

Annual Financial Statements

Every company must prepare annual financial statements consisting of:

• Balance sheet (statement of financial position)
• Income statement (profit and loss account)
• Notes to the financial statements
• Cash flow statement (for medium and large enterprises)
• Statement of changes in equity (for medium and large enterprises)

Filing Deadlines

Obligation	Deadline
Annual financial statements preparation	March 31
Corporate tax return	June 30
Publication in Trade Register	September 30
Annual activity report to NSI	Filing with tax return

Company Size Categories

Your reporting obligations depend on your company’s size classification:

• Micro-enterprise — balance sheet total below BGN 700,000, net revenue below BGN 1.4 million, fewer than 10 employees
• Small enterprise — balance sheet total below BGN 8 million, net revenue below BGN 16 million, fewer than 50 employees
• Medium enterprise — balance sheet total below BGN 38 million, net revenue below BGN 76 million, fewer than 250 employees

Micro and small enterprises enjoy simplified reporting requirements and are exempt from mandatory audit.

Audit Requirements

An independent financial audit is mandatory for:

• Medium and large enterprises
• Companies exceeding two of three thresholds: BGN 2 million balance sheet total, BGN 4 million net revenue, 50 employees
• All publicly traded companies
• Companies with specific regulatory requirements

Most small foreign-owned companies are exempt from audit, which reduces compliance costs.

Publication Requirements

Annual financial statements must be published in the Trade Register by September 30 of the following year. Failure to publish results in fines:

• BGN 200–3,000 for the company
• BGN 200–1,000 for the responsible manager
• Repeated violations double the fine amounts

Tax Reporting

Beyond financial statements, companies must file:

• Annual corporate tax return — due June 30, declaring taxable profit and tax due
• Monthly VAT returns — if VAT-registered, due by the 14th of the following month
• Monthly social security declarations — if the company has employees
• Statistical forms — annual activity report to the National Statistical Institute

Hiring an Accountant

Bulgarian law does not require companies to hire a licensed accountant, but in practice it is strongly recommended. Accounting must comply with specific Bulgarian standards, and errors can result in tax penalties. Most foreign business owners engage a local accounting firm.

When choosing an accountant, look for:

• Experience with foreign-owned companies
• Familiarity with your industry
• Electronic filing capabilities with the NRA
• Communication in English or your preferred language
• Transparent pricing — monthly fees typically range from BGN 150–500 for small companies

Professional Guidance in Troyan

Staying compliant with Bulgarian accounting and reporting requirements is essential for avoiding penalties and maintaining your company’s good standing. Attorney Biser Dimov in Troyan can recommend trusted accountants experienced with foreign-owned businesses and help you understand your legal obligations. Contact us for advice tailored to your situation.