E-invoicing updates in Bulgaria

In a significant move to modernize its public procurement processes, Bulgaria has mandated the use of electronic invoicing (e-invoicing) and adherence to the European standard as of October 18, 2018. This amendment to the Public Procurement Act (PPA) marks a pivotal shift towards digitalization in the country's public sector. In other words, B2G e-invoicing rules have been updated; maybe we can expect certain changes for B2B and B2C? The future will show. For B2G, the legislation in place applies to all public levels: central, regional, and local contracting authorities and entities.

To facilitate this transition, the Public Procurement Agency has launched a dedicated portal offering comprehensive compliance guidance. The portal serves as a resource for contracting authorities and economic operators to navigate the new e-invoicing requirements effectively.

As a testament to Bulgaria's commitment to the European Union's digital agenda, from November 1, 2019, all contracting authorities have been obligated to accept and process e-invoices that comply with the European standard on electronic invoicing. This move ensures a harmonized approach to e-invoicing across member states, promoting efficiency and reducing administrative burdens.

Further strengthening the framework, on July 1, 2020, Bulgaria implemented provisions for electronic communication encompassing tender evaluation, contract conclusion, ordering, invoicing, and payment processes. These provisions are part of the broader Law Amending and Supplementing the Public Procurement Act (LASPPA), which aligns national legislation with the EU's eInvoicing Directive.

Central to Bulgaria's e-procurement strategy is the Central Automated Information System Electronic Public Procurement (CAIS EPP). Established by the LASPPA, CAIS EPP operates as the national platform, ensuring a seamless and standardized procurement process. The system underwent a significant update on May 2, 2020, introducing its second version aimed at enhancing communication between public entities and private sector bodies. CAIS EPP is characterized by its three distinct user types, each tailored to meet the specific needs of its stakeholders. The system's management falls under the purview of the Public Procurement Agency, which oversees its operation and ensures its alignment with the eInvoicing Directive.

In Bulgaria, the implementation of e-invoicing is based on bilateral agreements between economic operators and public administrations. This approach allows for flexibility and customization, catering to the unique requirements of each agreement while maintaining compliance with the European standard. The adoption of e-invoicing in Bulgaria signifies a forward-thinking approach to public procurement, setting a precedent for other nations to follow in the pursuit of digital excellence in governance.