Indirect taxes include value-added tax (VAT).
VAT taxation in Bulgaria follow the European Union model of VAT, which is collected every month of the year for all suppliers of good, except that good with lower rate or zero rate. VAT rate in Bulgaria is 20%, which in the scale of VAT taxation is in the middle. The lowest tax of VAT is 17 % is collected in Luxembourg and the highest is in Hungary – 27 %. When the person is registered there is a possibility of VAT return.
As a part of taxes in Bulgaria are taxes of natural Bulgarian or foreign citizens. These include local fees and local taxes; vignettes; real estate taxes, succession taxes, tourist fee and etc. These taxes are collected by the regional offices of NRA or administrative cash desks; their amount and quantity is specified by the municipality council according to the state legislation and they are paid into local budged. All of these fees and taxes are used for improving local infrastructure or other municipality issues.