NRA Tax Audit in Bulgaria — Phases, Deadlines and Legal Defense (2026)

Check vs audit — the key distinction

In everyday communication, the terms "check" ("проверка") and "audit" ("ревизия") are often confused, but legally these are two different procedures under DOPK with fundamentally different consequences for the taxpayer.

• Check: informal procedure for gathering information and documents. Does NOT conclude with a binding assessment act — it may end with a protocol, instructions or transition to an audit. Shorter deadlines and fewer procedural safeguards; usually precedes a potential audit.
• Audit: formal procedure under DOPK (Art. 112 et seq.) that concludes with a tax assessment act — an administrative act with legal force. It establishes public obligations (taxes, social security contributions, interest), is subject to strict procedural deadlines and taxpayer rights, and the act is subject to enforcement once it enters into force.

A tip from our practice: engage counsel as early as the check phase. During a check you have two options — voluntary correction of declarations (if a gap is identified) or awaiting a potential audit. The right choice depends on the specific case and requires a legal assessment, because voluntary payment can avoid interest but may also legitimise the NRA's disputable interpretations.

Stages of the audit procedure

The audit procedure goes through eight key stages, each with its own deadlines and procedural actions:

1. Assignment order (ЗВР, "zapoved za vazlagane") — Art. 112 DOPK
2. Factual actions — gathering evidence, requests, explanations
3. Audit report — Art. 117 DOPK
4. Objection to the report — 14-day deadline (Art. 117(5))
5. Issuance of the tax assessment act — Art. 119 DOPK
6. Administrative appeal to ODOP — 14 days (Art. 152)
7. Appeal to the administrative court — 14 days from the ODOP decision
8. Cassation before the Supreme Administrative Court (VAS) — 14 days from the first-instance decision

Each of these stages has an independent significance for the taxpayer's rights. Missing a deadline at an early stage cannot be compensated later, which is why the defense strategy must be built from the very beginning of the procedure.

Assignment order (ЗВР)

The assignment order is the act that initiates the audit procedure. It is issued by the director of the territorial directorate (TD) of the NRA or by an authorised official under Art. 112(1) DOPK.

Mandatory elements of the assignment order

• The person subject to the audit — full details of the taxpayer
• The period under audit — specific tax periods
• Types of taxes and mandatory social security contributions — scope of subject matter
• Deadline for conducting the audit — up to three months from service of the order (Art. 114(1)), extendable by up to a further two months (para. 2), and up to a total of two years in cases of particular factual and legal complexity
• Tax officials assigned to the audit — names and positions
• Date of issuance and signature of the competent authority

Procedural defects in the assignment order

The absence or inconsistency of mandatory elements, issuance by an incompetent authority, improper service, or issuance outside the competence as to time and scope — all constitute procedural violations that may be independent grounds for annulment of the subsequent tax assessment act. That is why analysis of the assignment order in the first days after service is a critical element of the defense.

Factual actions — your rights in the procedure

During factual actions (evidence gathering) the taxpayer has a number of rights expressly enshrined in DOPK:

• Right to legal defense (Art. 25 DOPK) — counsel present at all procedural actions
• Right of access to the case file (Art. 37 DOPK) — review the entire file and obtain copies
• Right to be personally present at all factual actions concerning you
• Right to raise objections and requests — witness examination, expert reports, document submission
• Right to written explanations — instead of oral ones, with time for reflection and consultation
• Right to contest acts of the revenue authority under the established procedure

Important — what you are NOT required to do: admit violations or inaccuracies; sign protocols or declarations that do not reflect reality; provide oral explanations immediately (you may request a written questionnaire and a reasonable deadline).

A tip from our practice: any statement made before an auditor may be used against you. Never provide explanations without prior coordination with counsel. If the auditor insists on an immediate answer — expressly record your request for a written questionnaire in the protocol.

Audit report — 14-day deadline for objection

After the factual actions are completed, the revenue authority prepares an audit report under Art. 117 DOPK. The report contains factual findings, legal conclusions, proposals for the establishment of obligations (taxes, contributions, interest) and annexes. In our practice, reports are usually between 30 and 150 pages, and in complex cases exceed 300 pages.

Objection deadline

Under Art. 117(5) DOPK the taxpayer has a 14-day deadline to file a written objection; upon a reasoned request, the deadline may be extended by up to one additional month. The extension is granted by the authority that assigned the audit.

What the objection should contain

• Challenging factual findings — with counter-evidence
• Challenging the legal qualification — with reference to law and case law
• Requests for additional actions — expert reports, witnesses, documents
• Written explanations and counter-evidence

The objection phase is pivotal — it is where the main defense thesis is shaped and later developed throughout the procedure. Omitting or superficially drafting the objection significantly weakens positions in subsequent appeals.

Tax assessment act — legal force and enforcement

The tax assessment act under Art. 119 DOPK is an administrative act that establishes the public obligations of the audited person. It is issued on the basis of the report and the objection (if any) by the revenue officials designated in the assignment order.

Legal characteristics

• Establishes liabilities for taxes, social security contributions and interest
• Enters into force 14 days after service, if not appealed
• Subject to preliminary enforcement — the NRA may commence collection before the appeal is finally resolved
• Under DOPK, an appeal does not automatically suspend enforcement, except upon provision of security or a court order to suspend

Service of the act

The tax assessment act is served under Art. 29 et seq. DOPK — in person, by registered mail with acknowledgement of receipt, or electronically via the NRA portal. The 14-day appeal deadline runs from the date of service. Absent proper service, the deadline does not run, which in some cases is a ground for challenge.

A tip from our practice: upon receipt of the act, document the exact date and method of service. This is critical for the appeal deadline.

Appeal to the ODOP Directorate — mandatory stage

Before reaching court, the appeal against a tax assessment act goes through a mandatory administrative stage — before the director of the "Appeals and Tax-Insurance Practice" (ODOP) directorate at the Central Office of the NRA.

Deadline and procedure

• 14-day deadline from service of the tax assessment act (Art. 152(1) DOPK) — preclusive, not extendable
• The appeal is filed through the TD of the NRA that issued the act
• Deciding authority: the director of the competent ODOP directorate
• ODOP must issue a decision within 60 days (Art. 155 DOPK); otherwise implicit confirmation applies and the court appeal deadline begins

Possible outcomes

The ODOP stage is not a formality — it is the last opportunity for review within the NRA and often the outcome can be decided here. The appeal requires detailed legal reasoning addressing every factual and legal finding in the assessment act.

Court appeal — administrative court and VAS

Following an ODOP decision (or implicit confirmation), the court stage begins. Court appeal is two-instance — the administrative court at first instance and the Supreme Administrative Court (VAS) on cassation.

First instance — administrative court

• Jurisdiction: administrative court at the seat of the TD of the NRA
• Deadline: 14 days from service of the ODOP decision (or expiry of the 60-day deadline for implicit confirmation)
• The court reviews the act on both factual and legal grounds

Cassation — Supreme Administrative Court

• Cassation deadline: 14 days from service of the first-instance decision
• Jurisdiction: a five-member panel of the VAS
• Grounds: violation of substantive law, material breach of procedure, unfoundedness
• The VAS decision is final and enters into force immediately

Possible grounds for annulment are substantive (misapplication of tax law, missed exemptions), procedural (violations of DOPK during the audit) or factual (incorrect establishment of circumstances). VAS case law on tax matters is a mandatory reference point in any defense strategy.

Defending your interests — strategy by phase

Effective legal defense in an audit does not begin when the assessment act is received — it is a process built at every phase:

• Check phase: preventive review of documentation, assessment of escalation risk, strategic decision between voluntary correction and waiting.
• Assignment order and factual actions phase: legal analysis of the order for procedural defects, representation before auditors, control over every written statement.
• Report and objection phase: detailed analysis of every finding, collection of counter-evidence, reasoned objection under Art. 117(5), requests for expert reports and witnesses.
• ODOP phase: procedural and substantive objections, request for suspension of enforcement against security.
• Court phase: comprehensive appeal with reference to VAS case law, judicial accounting expert reports, witness examination where necessary.

Practical recommendations: do not provide oral explanations without legal consultation; every written statement goes through counsel; document every contact with the NRA (date, official, content); legal review before every questionnaire response.

Frequently asked questions