The fitness industry in Bulgaria is growing every year, and more and more trainers and wellness professionals are starting their own businesses. With increased income and a growing client base, the question of VAT registration inevitably arises. This article outlines when VAT registration is required, the legal thresholds, and what the registration process entails.
When Is VAT Registration Mandatory for Trainers and Wellness Professionals?
In Bulgaria, any individual or legal entity engaged in independent economic activity that exceeds a specific taxable turnover threshold must register for VAT under the Value Added Tax Act (ZDDS).
Mandatory Registration Threshold:
It is essential to monitor your turnover, especially if you work with corporate clients or run group training sessions, which can increase income rapidly.
Voluntary VAT Registration – When Is It Beneficial?
Even if you haven’t yet reached the mandatory BGN 100,000 threshold, voluntary VAT registration can be a strategic move. It is ideal for professionals working with businesses, institutions, or international clients, where having a VAT number builds trust and legitimacy.
Voluntary registration also allows you to claim input VAT on business expenses like equipment, rent, or marketing. However, it comes with responsibilities such as monthly VAT returns and the need for accurate bookkeeping. It is best suited for those aiming for business growth with consistent income.
Advantages of Voluntary Registration:
- Increases credibility with business clients
- Allows reclaiming VAT on business expenses (equipment, rent, marketing)
- Facilitates working with international clients and companies
Disadvantages:
- Monthly VAT returns are required
- Administrative burden and the need for an accountant
- Less appealing to individual clients who must pay VAT
Free 30-minute consultation for new clients.
What Does the VAT Registration Process Include?
VAT registration requires preparation and coordination. It starts with filling out a standard application form, supported by documents proving your income and activity – such as contracts with clients, bank statements, and turnover summaries. If you are a self-employed individual, personal information like your national ID and correspondence address must also be provided.
Once prepared, the application can be submitted online using a Qualified Electronic Signature (QES) through the NRA portal or in person at the local tax office. If everything is in order, the NRA will issue a registration certificate within 14 days. The VAT number must then be included in all invoices, your website, contracts, and marketing materials.
- Document Preparation:
- Application form (Art. 96 of the VAT Act)
- Documents proving your income
- Tax ID, registration certificate for ET or company
- Submission to NRA:
- Online via NRA portal with QES
- In person at a local NRA office
- Registration Period:
- Within 14 days, if documentation is correct
How to Invoice Clients After VAT Registration?
Once registered, you must issue proper invoices for all services provided, including personal training, online sessions, and consultations. Each invoice must clearly display the service price excluding VAT, the 20% VAT amount, and the total price. This applies to both corporate and individual clients.
To stay compliant and simplify accounting, it’s advisable to use invoicing software that automatically calculates VAT. All invoices must be kept for at least 10 years.
Sample VAT Invoice:
Common Mistakes with VAT Registration for Trainers
- Late registration – leads to fines and retroactive VAT charges
- Incorrect invoicing – missing required fields or wrong VAT rate
- Ignoring cross-border rules – especially for online EU clients
- Lack of accounting oversight – increases risk during audits
What Happens When You Deregister from VAT?
If you fall below the turnover threshold or cease operations, you may apply for VAT deregistration. However, this is also a regulated process requiring proper documentation.
After submitting your request and receiving confirmation from the NRA, you must stop charging VAT. If you’ve claimed input VAT on business assets (e.g. equipment), partial repayment may be necessary. Additionally, you must retain accounting records for at least 10 years.
Special Considerations for Wellness Professionals
Not all wellness services are treated equally for VAT purposes. Only those provided by certified medical professionals that qualify as “medical care” are VAT-exempt. Others—like yoga, nutrition coaching, or life coaching—are generally subject to the standard 20% VAT rate.
If you’re not a licensed healthcare provider, it’s likely that your services will be taxed. It’s recommended to consult a lawyer or accountant to determine your exact VAT obligations.
Conclusion
VAT registration for fitness trainers and wellness professionals is not just a legal formality—it directly impacts pricing, business perception, and client relationships. Being informed, registering on time, and managing your taxes properly can protect you from fines and give you a competitive edge. When in doubt, consult a licensed accountant.
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