License to trade in cigarettes and alcohol in Bulgaria

Elan Consulting provides its clients with professional services and consultations in the field of accounting and taxation. If you are considering starting a trade in alcohol and cigarettes in Bulgaria in 2024, you may be asking yourself: “How much does a license for alcohol and cigarettes cost?”, “Do I need a license to sell alcohol?”, “How much does a license for cigarettes cost?” or “What are the requirements for the sale of alcohol?”.

These questions are important for anyone who wants to engage in this type of trading. The first step is to understand the procedure and the documents that are needed. For example, what documents you need to submit for a cigarette license and who issues a license to sell alcohol. In this article, we will also consider questions such as “How is the registration of a cigarette license carried out?” and “What do you need to do to get permission to sell alcohol?”

Elan Consulting can help you with all aspects of this process, from submitting applications to navigating the requirements of the Customs Agency. If the requirements are not met and the necessary license is not obtained, there is a risk of serious fines for selling cigarettes without a license.

Our company is available for consultation and assistance both in Sofia and in Burgas, Pomorie, Karnobat, Sunny Beach, Aytos, Nessebar, Sozopol, Primorsko and the whole of Bulgaria. With our expert team, you will be able to get accurate information and professional help to successfully start and develop your business. Find out all the details about issuing licenses and avoid penalties by trusting our experience and knowledge.

If you have other questions like “Who issues a license to sell alcohol?” or “What are the requirements for selling cigarettes?”, please feel free to contact us. Elan Consulting is here to help you navigate the complex regulatory environment and ensure the successful operation of your business.

When do we need a license to trade cigarettes?

A license to trade in cigarettes is required when you plan to sell, store or offer tobacco products in Bulgaria. The sale of cigarettes can be carried out only by persons who have received permission to trade tobacco products from the director of the territorial directorate at the location of the commercial warehouse or object (Art. 90a, para. 1 of the Law on Excise Duties and Tax Warehouses).

Tobacco products, according to Bulgarian legislation, include cigarettes, cigars, cigars and other tobacco-containing products that are intended for smoking, sniffing, sucking or chewing (Art. 2, para. 1, item 1 of the Excise Duties and Tax Warehouses Act). In order to obtain a license to trade in cigarettes, you must submit a written request to the director of the territorial directorate or to the nearest customs office, accompanied by the necessary documents determined by the regulations for the application of the law (Art. 90c, paras. 1 and 2 of the Excise and Tax Warehouses Act).

The procedure for issuing a permit includes an on-site inspection and examination of the submitted documents. The Director of the Territorial Directorate must give a ruling within 14 days from the date of receipt of the request (Art. 90d, para. 1). If the documents do not meet the requirements or the information provided is insufficient, the applicant has a period of 14 days to correct the irregularities or provide additional information (Article 90d, paragraphs 2 and 3).

With regard to the trade in alcohol, a trade license is not required, but registration of the object for sale in the municipality as a public object within the meaning of the Health Act (Art. 90a, para. 1 of the Excise and Tax Warehouses Act) is required. According to the Law on Wine and Spirits, trade in alcoholic products is subject to control and must meet certain requirements, such as providing inscriptions in Bulgarian and compliance with specific storage and sale conditions (Article 2, paragraph 1, item 1 of the Law on Wine and Spirits).

Fines for selling cigarettes without a license are serious and include administrative penalties, including fines and confiscation of the goods. Persons who do not comply with the requirements of the law are subject to checks and penalties by the customs authorities and other competent authorities (Art. 90g, para. 1 of the Excise Duties and Tax Warehouses Act).

What are the fines for selling cigarettes without a license?

Selling cigarettes without a license is a serious violation that is subject to significant fines and property penalties. According to Art. 108a of the Excise and Tax Warehouses Act, anyone who stores, offers or sells tobacco products in commercial warehouses or establishments without the relevant permit is punished with a fine of 1000 to 3000 BGN and a property penalty in the amount of 2000 to 5000 BGN. In case of repeated violation, the fine increases and varies between 2000 and 5000 BGN, and the property penalty — from 4000 to 8000 BGN.

The law also states that these sanctions do not apply to persons who store, offer or sell tobacco products from means of transport for which the necessary information has been provided in accordance with Art. 90b, paras. 3 and 4 (Art. 108a, para. 3). This exception applies to persons authorised to trade in tobacco products who have informed the customs authorities of the means of transport used for this activity.

It is forbidden to sell, store and offer tobacco products by traders who do not have permission to sell tobacco products, as well as outside the places specified in Art. 90b (Art. 100a, para. 1). Also, the offer and sale of tobacco products by individuals who are not sole traders is prohibited (Art. 100a, para. 2).

These regulations aim to ensure that tobacco products are sold only by licensed traders and at designated locations, which is an important measure for the control and regulation of the tobacco market in Bulgaria. Violations of these requirements lead to serious sanctions, which are designed to discourage illegal trade in tobacco products and to protect the public interest.

Who issues a license to trade alcohol in Bulgaria?

A license to trade alcohol in Bulgaria is not required. Instead of a license, alcohol trading requires registration of the object as a public purpose object, according to the Health Act. Objects of public use include places such as hotels, motels, restaurants, bars and others, which are listed in §1, item 9 of the additional provisions of the Health Act.

Another case in which a license is required is when, in addition to spirits, groceries are sold in the establishment, including packaged foodstuffs within the meaning of the Food Act.

Registration of the object of public use must be made in the relevant regional health inspectorate at the location of the object. This must be done no later than the day of commencement of the activity, indicating the address of the object, the types of activities to be carried out, as well as the name and permanent address of the person exercising the activity, and if he is a trader — also the EIC (Art. 36, para. 1 of the Health Act).

In addition, for the production of alcohol, a license is required under the Excise and Tax Warehouses Act. The production of ethyl alcohol and distillates, spirits and wine is subject to strict regulatory control and licensing. According to the Law on Excise Duties and Tax Warehouses, a license for managing a tax warehouse is issued by the Customs Agency (Art. 43 et seq. of the ZADC).

To obtain such a license, a person must submit an application to the Director of the Territorial Directorate of the Customs Agency, the application must be accompanied by all necessary documents proving compliance with the legal requirements (Art. 57 of the ZADC).