Consulting company “Elan Consulting” offers a comprehensive service for obtaining a license to trade fuels in Bulgaria, covering the process from the initial application to the final approval. In this regard, we often receive questions from our customers about various aspects of the process. For example, “What are the requirements for fuel trading and what documents are needed to obtain a license for wholesale and retail fuel trading?” and “What are the conditions and requirements for a gas station under the Fuels Act and the Fuels Ordinance?” Our specialists are well aware of the procedures and regulations provided by the Ministry of Economy and the Fuels Act, and we can help you with all the necessary steps for inclusion in the Register of Persons Carrying Out Economic Activities Related to Oil and Petroleum Products (ZARIDSNPNP).
Additionally, customers often ask: “What are the requirements for import and storage of fuels and petroleum products in Bulgaria?” and “What are the specific obligations under Art. 118, para. 10 of the Value Added Tax Act (VAT)?” We have experts who can clarify these regulations and assist in the preparation of the necessary documents, as well as in the implementation of the specific requirements of the Fuel Ordinance.
Elan Consulting offers its services not only in Sofia, but also in cities such as Burgas, Pomorie, Karnobat, Sunny Beach, Aytos, Nessebar, Sozopol and Primorsko. Whether it's a newly opened company or an existing business, we can offer expert help and advice on all aspects of the process. Our customers also ask: “What are the procedures and requirements for inclusion in the fuel register maintained by the Ministry of Economy?” We can help you navigate this complex process by providing you with the necessary guidance and assistance for successful registration.
In this article you will learn how to obtain a license for wholesale and retail trade in fuels, as well as for filling and distributing cylinders with liquefied gas, you will find out what are the requirements, the necessary documents, including for import and storage of fuels and petroleum products in Bulgaria, as well as all the legal conditions for carrying out such activity!
Yes, in order to trade in fuels in Bulgaria, it is necessary to obtain a license.
In Bulgaria, commercial activities related to fuels that are subject to licensing are regulated in the Law on Administrative Regulation of Economic Activities Related to Oil and Petroleum Products. According to Art. 2, para. 1 of this Law, the main types of economic activities that require licensing include:
For each of these activities, it is necessary to submit an application for registration with the Ministry of Economy and Industry. (art. 3, para. 1). Registration requires the provision of certain documents and compliance with specific conditions, including the presence of assets or authorized capital, which varies depending on the scale of the activity (Art. 8, para. 1, item 2). 1).
Also, for objects from which trade will be carried out, it is required that they be permanently attached to real estate and meet the requirements for commissioning or tolerable construction (Art. 8, para. 2, item 2, letter “a”). It is also important that the objects comply with the requirements for the installation of measuring and control devices, allowing the accounting of incoming, stored and output products (Art. 8, para. 3, item 2). 5).
In addition, for retail trade in fuels, including for gas stations, there are special requirements, which include the availability of capital and specific technical conditions for the objects (Art. 8, para. 2, item 2, letter “b”).
It is also mandatory to secure the activity by providing a deposit or a bank guarantee, which serves to cover possible obligations to the state (art. 9 and art. 10). The amount of collateral depends on the type and scale of the activity (art. 11).
Registration is terminated in case of incomplete fulfillment of the requirements of the law or at the request of the registered person, and this is documented and entered in the register of the Ministry of Economy and Industry (art. 23).
Therefore, in order to engage in fuel trading in Bulgaria, you need to go through a detailed registration procedure and comply with all legal requirements in order to obtain the necessary license.
When wholesale of fuels in Bulgaria, you must obtain a specific license, which is regulated by the Law on Administrative Regulation of Economic Activities Related to Oil and Petroleum Products. According to Article 2, paragraph 1, item 1, wholesale trade in oil and products of petroleum origin is one of the main economic activities, which is subject to mandatory registration and licensing.
To obtain a license for wholesale trade in fuels, you must first submit an application for registration with the Ministry of Economy and Industry, providing the necessary documents, which include a certificate of registration of the company under the Trade Law, evidence of the presence of assets or authorized capital, as well as documents certifying the right to use the objects from which trading will be carried out Article 17 (1) and (2)).
It is also necessary to prove that your company has assets or authorized capital, which vary depending on the scale of your activity. For newly registered traders and companies with net sales revenue of up to BGN 5 million for the previous year, a minimum capital of BGN 50,000 is required. For companies with higher revenues, the requirements are correspondingly higher, and for companies with revenues above BGN 50 million, a capital of BGN 1 million is required (Art. 8, para. 1, item 3). 1).
Wholesale trade in fuels also requires collateral, which can be in the form of a deposit or bank guarantee. The amount of the collateral for newly registered traders and companies with net revenues of up to BGN 5 million is BGN 15,000, and for companies with higher revenues, the collateral is increased, reaching BGN 500,000 for companies with revenues over BGN 50 million (Art. 11, para. 1).
Vessels and tanks for the storage of fuels must have a permanent identification and indication of the total capacity and the commercial name of the product (Article 8, paragraph 3, item 6, letter “f”). This is important to ensure control and accountability of fuel stocks and movements. Objects must be equipped with measuring devices that meet the requirements of the Law on Measurements (Art. 8, para. 3, item 5, letter “e”).
It is also important that the objects from which the trade will be carried out are permanently attached to real estate and meet all the requirements for commissioning or tolerable construction within the meaning of the Law on Spatial Planning (Art. 8, para. 3, item 3, para. 4). The objects must have means of measurement and control that allow accurate accounting of stored and removed products (Art. 8, para. 3, item 3, para. 5).
After submitting the application and the necessary documents, officials of the Ministry of Economy and Industry conduct an inspection and, subject to the fulfillment of all conditions, issue a certificate of registration, which allows you to start wholesale trade in fuels (Art. 18).
In the case of retail sale of fuels in Bulgaria, there are numerous requirements that must be met for obtaining a license, regulated in the Law on Administrative Regulation of Economic Activities Related to Oil and Petroleum Products. First, you must submit an application for registration with the Ministry of Economy and Industry, including identification data of the applicant, a description of activities, data on oil and products of petroleum origin, as well as information about the objects of trade and storage (Article 17, paragraphs 1 and 2).
The special requirements include the presence of contributed authorized capital or assets in the amount of not less than BGN 20,000 for each object (Art. 8, para. 2, item 2, para. 1). The sites must be permanently attached to real estate and meet all construction requirements according to the Spatial Planning Act, as well as have the appropriate technical facilities and installations ensuring the safe operation of fuels.
Petrol stations must be equipped with automated reporting systems that allow real-time monitoring of the availability and sale of fuels (Article 8, paragraph 3, item 5, letter “c”). The means of measurement must comply with the requirements of the Law on Measurements and the by-laws on its implementation.
The activities of the objects must comply with all special regulatory requirements for operation, including the norms and rules of fire safety (Art. 8, para. 3, item 6, letter “e”). In addition, the facilities must have physical security or signal-security equipment to ensure safety (Art. 8, para. 3, item 6, letter “b”). Objects must be marked with the appropriate signs indicating the type of activities carried out in them (Article 8, paragraph 3, item 6, letter “d”).
In addition, the retail trade of fuels requires collateral, which can be in the form of a deposit or a bank guarantee. The amount of the security is BGN 20,000 for each activity under Art. 2, para. 1, item 2 (Art. 11, item 2). 3).
After submitting the application and the necessary documents, officials of the Ministry of Economy and Industry conduct an inspection and, subject to the fulfillment of all conditions, issue a certificate of registration, which allows you to start retail trade in fuels (Art. 18).
In order to open a business for filling cylinders with liquefied gas (LPG) in Bulgaria, it is necessary to meet a number of requirements set out in the Law on Administrative Regulation of Economic Activities Related to Oil and Petroleum Products and the Excise and Tax Warehouses Act (ZADC). First of all, you must register as a trader within the meaning of the Commercial Law, the Law on Cooperatives or under the legislation of another Member State of the European Union or a party to the Agreement on the European Economic Area. In addition, your company must not be in bankruptcy or liquidation proceedings and must not have its registration terminated under Art. 176 of the Value Added Tax Act.
The person representing the company, as well as the majority owners, directors and members of the governing bodies, must not have been convicted of an intentional crime of a general nature and must not have been on the management bodies of a company that has been dissolved due to insolvency in the last two years. In addition, the person or company must not have obligations under Article 87, paragraph 6 of the Tax and Insurance Procedure Code. Your business must have its own capital or assets in the amount of not less than 20,000 BGN. The site in which the activity of filling bottles with LPG will be carried out must be permanently attached to real estate and meet the requirements for commissioning or tolerable construction within the meaning of the Spatial Planning Act.
In addition, the site must meet the requirements for the safe operation of gas installations for liquefied hydrocarbon gases, which is certified ex officio by the State Agency for Metrological and Technical Supervision. It is also necessary to provide means for measuring and controlling the quantities of liquefied gas that meet the requirements of the Law on Measurements. Your business must have a minimum of 1000 own cylinders to store liquefied petroleum gas (LPG).
Also, you must conclude a contract for the filling of LPG bottles with another registered person or with a person who holds a license to manage a tax warehouse within the meaning of the ZADC, in which the filling will be carried out. In addition to the registration under the aforementioned laws, you will have to provide security in the amount of BGN 20,000, which serves for the fulfillment of outstanding obligations arising under the Oil and Petroleum Products Stocks Act, the Atmospheric Air Cleanliness Act, the Excise and Tax Warehouses Act and the Value Added Tax Act.
In order to open a business that is engaged only in the distribution of cylinders of liquefied gas (LPG) in Bulgaria, it is necessary to meet certain requirements, which are regulated in the Law on Administrative Regulation of Economic Activities Related to Oil and Petroleum Products. First of all, you must register as a trader within the meaning of the Commercial Law, the Law on Cooperatives or under the legislation of another Member State of the European Union or a party to the Agreement on the European Economic Area. Your company must not be in bankruptcy or liquidation proceedings and must not have its registration terminated under Art. 176 of the Value Added Tax Act.
The person representing the company, as well as the majority owners, directors and members of the governing bodies, must not have been convicted of an intentional crime of a general nature and must not have been on the management bodies of a company that has been dissolved due to insolvency in the last two years. In addition, the person or company must not have obligations under Article 87, paragraph 6 of the Tax and Insurance Procedure Code. The business must have its own capital or assets in the amount of not less than BGN 20,000. The facilities from which the distribution will be carried out must meet the requirements for the safe operation and storage of cylinders with liquefied petroleum gas (LPG), according to the regulations of the Law on Territorial Planning and the Law on the Cleanliness of Atmospheric Air.
Your business must have a contract with a registered person or with a person who holds a license to manage a tax warehouse within the meaning of the Excise and Tax Warehouses Act (ZADC), from which the LPG bottles will be supplied. It is necessary to provide means of transport that are suitable and certified for the safe transportation of liquefied petroleum gas. This includes technically sound vehicles equipped with fire-fighting means.
In addition, you need to ensure accountability and control over the distribution of liquefied gas cylinders using metering means that meet the requirements of the Law on Measurements. In addition, you must comply with all regulatory requirements related to labor safety and environmental protection in the distribution of LPG cylinders.
The objects and means of transport used for distribution must be registered in the relevant registers maintained by the competent state authorities in order to ensure compliance with all legal requirements. Also, you must provide insurance that covers the risks associated with the distribution of LPG to protect your business and its employees.
The security required by law to trade in fuels is a guarantee provided by persons carrying out economic activities related to petroleum and petroleum products. This security serves for the fulfillment of outstanding receivables arising under the Law on the Administrative Regulation of Economic Activities Related to Oil and Petroleum Products, the Law on Oil Reserves and Petroleum Products, the Law on Cleanliness of Atmospheric Air, the Law on Excise Duties and Tax Warehouses and the Law on Value Added Tax.
When submitting an application for registration, persons are obliged to provide security, with the exception of activities under Art. 2, para. 1, items 2 and 4 of the Act. The security can be established by a deposit in cash or by an unconditional and irrevocable bank guarantee. When providing security in cash, the amount is paid in Bulgarian leva to the account of the Ministry of Economy and Industry. When providing collateral under guarantee, the bank undertakes to pay unconditionally and irrevocably upon first written request from the Minister of Economy and Industry the amount specified in the request up to the amount of the guarantee. The term of validity of the security may not be less than one year and 6 months, calculated from the date of submission of the application for registration.
The amount of the collateral depends on the economic activities carried out and is determined as follows: BGN 15,000 for a newly registered trader and a person with net sales revenue for the previous calendar year up to BGN 5,000,000, BGN 30,000 for a person with net sales revenue between BGN 5,000,000 and BGN 10,000,000, BGN 60,000 per person with net income between BGN 10,000,000 and BGN 20,000,000, BGN 100,000 for a person with income from BGN 20,000,000 to BGN 50,000,000 and BGN 500,000 for a person with income over BGN 50,000,000 For persons who are engaged in filling cylinders with liquefied petroleum gas (LPG), the security is BGN 20,000, and for distributors of these cylinders it is BGN 100,000.
In the event of a change in the circumstances that are relevant for determining the amount of the security, the person is obliged to provide a new security and submit a new application within 7 days before the change occurs. The release of collateral is carried out after the termination of registration and in the absence of outstanding obligations. The request for the release of the collateral is submitted to the Minister of Economy and Industry, who takes action to recover the amount or return the bank guarantee.
In the event of an outstanding payable obligation, the Minister of Economy and Industry shall order the recovery of the collateral, and the actions for recovery shall be determined by regulation. Upon redemption of the security, the person is obliged to provide a new security within 14 days. Individuals may replace the security with an equivalent of another type by submitting an application to the Minister of Economy and Industry. The term of the new security may not be shorter than the remaining term of the previous one.
The procedure and the necessary documents for issuing a license to trade in fuels in Bulgaria are regulated in the Law on Administrative Regulation of Economic Activities Related to Oil and Petroleum Products. Registration is carried out in the Ministry of Economy and Industry, where a register of persons carrying out these economic activities is maintained (Art. 16, para. 1 of the Law).
For each of the activities under Article 2, paragraph 1, item 1-6, a separate registration of the person shall be made, and upon entry in the register, a certificate shall be issued by the Minister of Economy and Industry or by the Deputy Minister authorized by him. The certificate shall contain the number and date of registration, name, registered office and address of the applicant, identification data of the applicant, type of activity, the premises from which the activity will be carried out and the means of transport by which the transport will be carried out (Article 16, paragraphs 3 and 4).
For registration, persons submit an application for each of the activities referred to in Article 2, paragraph 1, item 1-6 according to a template approved by the Minister, which contains identification data of the applicant, description of the activities, data on oil and petroleum products, detailed information on all commercial activities carried out and regimes, as a result of which oil and petroleum products will be acquired origin, the objects of trade and storage, including imports and intra-Community arrivals (INTRA-Community arrivals), address for correspondence and contact person (Article 17, para. 1).
The following documents are attached to the application:
Within 7 working days of receipt of the application, officials carry out verification of the attached documents. If incompleteness or inaccuracies are found, the applicant shall be notified of them and shall have 14 days to remedy them. After the inspection, officials offer the Minister to issue a certificate of entry in the register or a reasoned refusal order (Art. 18).
The Minister of Economy and Industry may refuse registration in the event that the applicant does not meet the conditions for registration or if the deficiencies in the documents are not eliminated within the specified period (Art. 19). The rights arising under the registered registration may not be transferred, except in the case of conversion of a commercial company, provided that the new owner meets the conditions for registration (art. 20).
In the event of a change in circumstances, the person who received registration must submit an application for updating the data within 7 days from the date of the change (art. 21).
Companies that trade in fuels in Bulgaria have specific accounting and tax obligations regulated by the Value Added Tax Act (VAT) and related regulations. The main duties include registration and accounting of deliveries and sales made, issuing cash receipts, remote submission of data to the National Revenue Agency (NRA), as well as providing collateral under certain conditions.
Every person, whether registered under VAT or not, is obliged to register and account for the supplies and sales made by him in a commercial establishment by issuing a fiscal receipt from a fiscal device or by issuing a receipt from an integrated automated system for managing commercial activity. The recipient of the goods or services is obliged to receive and store this note until leaving the object (Art. 118, para. 1 ZDDS).
Fiscal devices and business management systems must have the technical capability to establish a remote connection with the NRA through which to submit data on sales made. The technical requirements, the procedure and the manner of implementation of this connection are determined by an ordinance issued by the Minister of Finance (Art. 118, para. 2 ZDDS).
Fiscal and system notes are paper documents that record the sale or delivery of goods and services in a commercial establishment, regardless of the method of payment. In the case of sales through vending machines or e-shops, the fiscal voucher can be generated and provided in electronic form (Art. 118, para. 3 and para. 3a of the GDPR).
Companies that carry out deliveries and sales of liquid fuels are obliged to transmit data over a remote connection to the NRA, which makes it possible to determine the available quantities of fuels in the storage tanks at the facilities (Art. 118, para. 6 ZDDS). Persons who refuel vehicles, machinery or equipment for their own needs must also register and report these recharges in the same order (Art. 118, para. 8 ZDDDS).
Taxable persons who carry out supplies of liquid fuels are obliged to submit data on the supply and movement of the quantities of fuel supplied or received to the NRA. The data are submitted on the date of the tax event or on the date of occurrence of a change in circumstances electronically with a qualified electronic signature (Art. 118, para. 10 ZDDS).
Under certain conditions, persons making taxable supplies of liquid fuels or intra-community acquisitions must provide collateral in cash, government securities or a bank guarantee to the NRA. This security serves for the fulfillment of outstanding tax obligations related to these supplies (Article 176c of the GDPR). The security shall be at the rate of 20% of the taxable amount of the taxable supplies or acquisitions for the preceding tax period. In the event of a change in the circumstances that are relevant for determining the amount of the security, a new security shall be provided within three days prior to the change (Article 176c, para. 4 ZDDS).
Also, companies must keep documents related to deliveries and sales, as well as the collateral provided, and provide them upon request by the competent authorities. The accounting and tax obligations of companies trading in fuels are significant and require strict compliance with legal requirements in order to avoid penalties and fines.
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Any fuel trader who carries out taxable supplies of liquid fuels with a total value of tax bases exceeding BGN 25,000 must provide security in cash, in government securities or as an unconditional and irrevocable bank guarantee for a period of one year before the competent territorial directorate of the National Revenue Agency. This requirement also applies to intra-Community acquisition of liquid fuels or receipt of liquid fuels released for consumption, with a total value of tax bases exceeding BGN 25,000.
The following categories of persons are exempt from the obligation to provide security: licensed storekeepers within the meaning of the Excise and Tax Warehouses Act, persons carrying out supplies with a special regime under the ZADS, persons who have fulfilled the requirements for submission of information under Art. 118, para. 6 of the ZVAT only for their supplies, registered farmers, budgetary organizations, and persons entered in the register under Art. 176c, para. 15 of the ZDDS.
The notification of entry in the public register under Art. 176c, para. 15 of the ZDDS shall be submitted via the electronic service “Notifications on entry, change of circumstances or deletion from the register under Art. 176c, para. 15 of the GDPR”. This procedure is intended for persons who are exempt from the obligation to provide collateral and facilitates their administrative burden.
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