Bulgaria Would Treat Network Energy Supplies as Intra-EU Distance Sales

Summary

• Bulgaria proposes treating specified supplies of gas, electricity, heating and cooling through networks as intra-Community distance sales.
• The change forms part of the ViDA Single VAT Registration measures intended to bring additional cross-border B2C supplies within simplified OSS reporting.
• Energy suppliers should distinguish the proposed distance-sales treatment from existing place-of-supply rules and confirm the final scope and application date in the adopted legislation.

Extended article

Bulgaria’s draft legislation would classify specified cross-border supplies of gas, electricity, heating and cooling through networks as intra-Community distance sales.

The measure forms part of ViDA’s Single VAT Registration reforms. These reforms widen the transactions that may be declared through the One-Stop Shop and are intended to reduce the situations in which a supplier must obtain a VAT registration in the Member State of consumption.

The proposal is relevant to supplies delivered through:

• natural-gas systems;
• electricity networks;
• heating networks; and
• cooling networks.

The classification affects how the cross-border supply is treated and how VAT may be reported. It should not be assumed that every wholesale or B2B energy transaction falls within the new distance-sales category. The customer’s status and the statutory scope remain central.

Council Directive (EU) 2025/516 is designed to reduce multiple VAT registrations and adapt the VAT system to modern cross-border business models. [eur-lex.europa.eu]

External links

• Access the Bulgarian Ministry of Finance consultation page [minfin.bg]
• Read Council Directive (EU) 2025/516 [eur-lex.europa.eu]

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