Tax free Shopping, what is it?

Tax-Free Shopping is a service enabling all foreign travellers non-EU citizens to reclaim the VAT charged on their purchases of goods for personal use.

Tax Free Shopping is applied in Bulgaria under ordinance H-12 dated 24.08.2006 regulating the procedure and documents for refund of value added tax charged to and paid by foreign natural persons for goods purchased and exported by them from the territory of the country in their personal luggage for personal use in unchanged type.

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Why VAT is recoverable in EU and what is VAT?

Value Added Tax (VAT) is an indirect tax levied on your foreign business expenses and raising the cost on the average of 20% depending on VAT rate applied in the particular country. Generally, the cost is ultimately borne by the final consumer and there for VAT is neutral to the companies taking part in different stages of economic chain of supply. However the process is not automatic and companies will not incur foreign VAT unless they go through the effort to recover their foreign VAT costs. In the early 90s the European legislation was modified enabling businesses to claim back VAT paid on expenses incurred while doing business in member states. VAT is refunded from the EU under the 8th Directive and the 13th Directive, last changes were made at the end of 2009.

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