Appealing Administrative Violation Acts (АУАН) and Penalty Orders in Bulgaria — ZANN Procedure (2026)

What is an АУАН, what is a penalty order, and why the difference matters

ZANN (the Administrative Violations and Sanctions Act) sets out a two-phase procedure. In the first phase the inspecting authority establishes the violation with an АУАН. In the second phase a different, hierarchically superior authority imposes the sanction with a penalty order.

This two-tier structure creates two separate opportunities for defence:

• Against the АУАН — written objections to the sanctioning authority itself (internal, administrative route).
• Against the penalty order — judicial complaint before the district court, with cassation review before the administrative court.

A common mistake: the obliged person files objections to the АУАН but misses the deadline for appealing the penalty order, assuming that the objection has already provided defence. The two documents and the two deadlines run independently.

Phase 1: АУАН — drafting, service and 7-day objection

The АУАН is a written act drawn up by an officer — an NRA inspector, traffic police officer, Labour Inspectorate, BABH, or another competent authority. It describes the violation, the evidence and the legal provisions infringed.

Mandatory elements (Art. 42 ZANN)

• Name and position of the drafter.
• Date and place of drafting.
• Date and place of the violation.
• Description of the violation and circumstances.
• The legal provisions violated.
• Names and addresses of witnesses.
• Explanations and objections of the offender, if any.
• Property damage caused by the violation (if any).
• Signatures.

The absence of a material element — e.g. an unclear description of the violation, wrong legal qualification or undated violation — is a ground for annulling the subsequent penalty order.

Service and signature

The АУАН is served personally on the offender. Signing does not mean agreement with the findings — it merely confirms receipt. Refusal to sign does not affect validity: the act is deemed served with the signature of two witnesses.

7-day objection deadline (Art. 44(1) ZANN)

Within 7 days of service the offender may file written objections to the authority competent to review the file. The deadline was 3 days until 22 December 2021 and was extended by a ZANN amendment effective from 23 December 2021. The extension materially strengthens defence — it allows real preparation time.

Objections may include:

• Challenging factual findings (I was not there, I did not sign, no violation occurred).
• Legal arguments (wrong qualification, misapplied law).
• Evidence refuting the АУАН (invoices, contracts, witnesses).
• Request to discontinue on limitation grounds (Art. 34 ZANN — 3 months from discovery of the offender or 2 years from the violation).

Important: objections may also be made orally during drafting, but written objections carry greater evidentiary weight. On receipt of the АУАН we recommend a written defence within the 7-day window — if only to lock in the grounds for the future court appeal.

Phase 2: Penalty order — one-month issuance deadline

After receiving the file, the competent authority (director of the territorial NRA directorate, the head of the relevant directorate, the director of the Labour Inspectorate, etc.) reviews it and issues a penalty order.

Issuance deadline (Art. 52(1) ZANN)

The law provides a one-month deadline from receipt of the file, which is instructive — missing it does not automatically void the order. Crucial, however, is the general deadline under Art. 34(3) ZANN: a penalty order cannot be issued after 6 months from drafting the АУАН. Issued after this deadline, the order is null.

Content of the penalty order (Art. 57 ZANN)

The penalty order must contain:

• Description of the violation, date and place.
• Legal provisions violated and qualification.
• Type and amount of the sanction (fine/property sanction).
• Property damage to be restored.
• Instructions on the deadline and procedure for appeal.

Failure to state the appeal deadline is an independent ground for restoring the deadline if the complaint is filed late.

20% discount: the alternative to appeal (Art. 58d ZANN)

Since 23 December 2021, ZANN allows voluntary early payment in exchange for a discount. Under Art. 58d(1), the offender may pay 80% of the fine or property sanction within 14 days of service of the penalty order.

The economics are straightforward: for a EUR 1,000 fine, early payment is EUR 800, a EUR 200 saving. But the choice is strategic:

Important: the discount does not apply to certain categories (e.g. serious road-traffic offences). Before paying, verify that the penalty order explicitly refers to the early-payment option.

Court appeal of the penalty order before the district court (14 days)

When the path of appeal is chosen, the complaint is filed with the district court at the place of the violation (Art. 59(1) ZANN). The deadline is 14 days from service of the penalty order (Art. 59(2)).

Filing procedure

The complaint is filed through the sanctioning authority that issued the penalty order, not directly with the court. The authority has a 7-day deadline (Art. 60(2) ZANN) to forward the file to the district court together with a written opinion.

Content of the complaint

• Names, address and other identifying data.
• Number and date of the penalty order being appealed.
• Facts and grounds of illegality.
• Relief sought (annulment, modification, termination).
• Evidence requests (witnesses, documents, expert examination).
• Signature.

Review by the court (Art. 63 ZANN)

The district court sits as a single judge and may:

• Annul the penalty order (full annulment — the appeal is well-founded).
• Modify the penalty order (e.g. reduce the sanction).
• Uphold the penalty order (the appeal is unfounded).
• Terminate proceedings (limitation, death of the offender, missing material element).

State duty: in ZANN proceedings there is no state duty on the offender’s complaint — judicial review of administrative sanctions is free for the appellant. Legal costs (attorney) are borne by the filer, but on a successful appeal they are awarded against the sanctioning authority (Art. 63(3) ZANN).

Cassation before the administrative court (14 days)

The district court decision is subject to cassation appeal before the regional administrative court (Art. 63v ZANN). The deadline is 14 days from notification of the decision.

Cassation proceedings follow the Administrative Procedure Code (APC, Chapter 12) and have a limited scope:

• Cassation grounds are limited to material breach of procedural rules, incorrect application of substantive law, or lack of reasoning.
• The administrative court does not consider new evidence — it only examines whether the first-instance decision is correct.
• The court sits in a three-judge panel.
• Administrative court decisions are final — no further appeal is available.

In practice, cassation is the last opportunity for judicial defence. Reaching the Supreme Administrative Court in these cases is exceptional (annulment under Art. 239 APC for material breaches).

Common grounds for annulling a penalty order

District and administrative court practice reveals several recurring grounds for annulment:

1. Missing or erroneous material element of the АУАН/penalty order. Missing date of violation, wrong legal qualification, incorrect name of the offender — all cause annulment.
2. Expired limitation. 3 months from discovery of the offender, 2 years from the violation (Art. 34 ZANN), or the absolute 4.5 years under Interpretative Decision 1/2015 of the Supreme Court of Cassation – Supreme Administrative Court. Applied by the court ex officio.
3. Breach of procedural rules. АУАН not served, offender’s witnesses not heard, no opportunity to provide explanations.
4. Wrong qualification. The authority applies an inapplicable provision (cites a repealed article or one that does not match the conduct).
5. Lack of fault. Some violations require intent or negligence; absence of the subjective element grounds annulment.
6. Minor case (Art. 28 ZANN). For violations of minor gravity the authority must issue only a warning, not a sanction. Omitting this is a ground for annulment or modification.
7. Incorrect sanction calibration. For sanctions with a minimum and maximum, the authority must reason the chosen amount; imposing the maximum without reasoning is a defect.

Defence strategy — when and how to appeal

The choice between paying and appealing depends on several factors:

When appealing is rational

• The sanction exceeds EUR 500–1,000.
• The violation is disputed on facts or law.
• You have documentary evidence that refutes the findings.
• Limitation has expired or will soon expire.
• The АУАН/penalty order has formal defects.
• Secondary effects — e.g. a repeat offence triggers harsher sanctions, annulment prevents future problems.

When paying with discount is rational

• The sanction is small (up to EUR 500).
• The violation is obvious — no disputed facts.
• The cost of defence (attorney, time) exceeds the 20% saving.
• You want to close the case quickly.

Practical tips

• On the day of receipt of the АУАН — photocopy every page and all attachments.
• Preserve the envelope or service receipt — the date is critical for all subsequent deadlines.
• Consult before signing the АУАН if the facts are disputed. Refusal to sign does not prejudice the offender.
• Do not make informal admissions of guilt — any statement to the inspector may be quoted in the protocol.
• Check the limitation status before deciding strategy.

The ZANN text is available at lex.bg. For specific limitation in tax and administrative-penal proceedings, see our article on limitation before the NRA.

Frequently asked questions