At the end of November 2009 the Bulgarian Parliament passed a number of amendments to the principal tax laws. The most important changes in the field of VAT are:
Deduction of input VAT. The period granted for the deduction of input VAT is extended from 3 months to 12 months.  The extended period should apply already for input VAT arising after 1 October 2009.
VAT recovery. As of 1 January 2010, the period for recovery of VAT will be decreased to two months. The VAT should be refunded to registered persons within 30 days (currently 45 days) after the filing of the VAT return. In case of delay the tax authorities will be obliged to pay default interest.
Reverse charge. Foreign taxable persons registered for VAT in Bulgaria will not be obliged to account for local VAT if they are not established in Bulgaria if the supply of services is subject to reverse charge by the Bulgarian customer.  If a taxable person carries out both an economic activity and an activity which falls outside the scope of VAT, it should be regarded as a taxable person liable to apply reverse charge for services received regardless of the activity for which they will be used.
VAT representative. Foreign taxable persons established in an EU Member State or countries that have concluded agreements for mutual assistance with Bulgaria may register for VAT purposes in the country without appointing a VAT representative.
Communication with the tax authorities. All VAT registered persons must indicate an e-mail for correspondence with the tax authorities until 31 March 2010. Non-compliance with this obligation for more than 3 months can lead to VAT deregistration.
New place of supply rules for services. The general rule for taxation of services in business to business transactions will be based on the destination principle. The recipient company will therefore normally be the generally liable for self-charging VAT. he presence of a fixed establishment of a taxable person should be considered in determining the place of supply only in cases where that establishment is involved in a transaction.