Invoicing During The COVID-19 Outbreak

The COVID-19 outbreak and state of emergency announced in Bulgaria by the National Assembly on 13 March 2020 put most companies in a complex financial situation without warning. While the Bulgarian government has proposed several measures aimed to partially reduce the financial losses incurred by companies because of the outbreak, nothing has yet been done regarding invoicing and VAT payments during this extreme situation. As a result, many suppliers of goods or services face uncertainty whether to invoice their clients for due payments when their clients claim suspension of or release from payments due to force majeure. Below we provide an overview of some of the Bulgarian tax law implications that should be considered when deciding how to proceed with invoicing in the current situation.