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Accounting and auditing in Sliven are governed primarily by national Bulgarian law and by European rules where applicable. The core legal framework includes laws that set accounting and reporting requirements, rules for statutory independent audits, and tax legislation that affects how accounts are prepared and examined. In practice, companies and other entities that operate in Sliven follow the same national rules as elsewhere in Bulgaria, while dealing locally with the Sliven regional offices of national authorities for filings, tax procedures and administrative contacts. Professional accountants and auditors must be properly qualified and registered with the appropriate national professional bodies and comply with ethical, confidentiality and professional liability requirements.
- Interpretation of legal obligations - determining what your legal obligations are for bookkeeping, reporting, VAT, corporate tax and mandatory audits.
- Representation in tax audits and disputes - when the National Revenue Agency or other authorities open an audit or issue assessments, a lawyer can protect your rights and represent you in meetings and appeals.
- Audit related disputes - dealing with allegations of deficient audit work, disagreements with appointed auditors, or claims of professional negligence.
- Corporate transactions - mergers, acquisitions, capital increases, reorganizations and liquidations often raise accounting and audit issues that require legal structuring and documentation.
- Fraud and internal investigations - where suspected fraud, embezzlement or misstatement is found, a lawyer can coordinate legal steps, preservation of evidence and cooperation with auditors or prosecutors.
- Regulatory compliance and administrative sanctions - advice on avoiding or responding to fines, sanctions and administrative procedures for accounting or reporting violations.
- Contracts and engagement terms - drafting and reviewing engagement letters with accountants and auditors, including scope of services, fees and liability clauses.
- Cross-border issues and transfer pricing - handling accounting and audit issues in cross-border transactions or multinational group reporting.
Below are the key legal areas and rules that are most relevant to accounting and auditing in Sliven. These are national rules that are applied locally.
- Accounting rules - Bulgaria has statutory accounting rules that set bookkeeping practices, chart of accounts, the content of financial statements and disclosure requirements. Some entities must follow National Financial Reporting Standards and certain entities report under International Financial Reporting Standards where required.
- Independent financial audit - statutory audits are required for certain companies and public interest entities. Auditors must be licensed and follow the professional and ethical standards prescribed by law and by their professional body.
- Commercial and corporate law - company formation, corporate governance, shareholder approvals of accounts and the obligations of directors are regulated by commercial and corporate laws and affect accounting and reporting duties.
- Tax law - Corporate Income Tax, Value Added Tax and other tax laws determine taxable bases and reporting requirements. Tax audits and assessments are conducted by the National Revenue Agency and regional offices, including the Sliven regional directorate.
- Tax and social insurance procedure - procedural rules set audit rights, deadlines for responses, appeal routes and administrative penalties for noncompliance.
- Professional regulation - auditors and certified accountants are regulated by national professional bodies which handle registration, continuing education and disciplinary matters.
- Data protection - accounting records often contain personal data and must be handled in accordance with the General Data Protection Regulation and Bulgarian data protection rules.
- Record retention and filing - law requires keeping accounting and tax records for statutory periods and filing annual statements with the Trade Register and other authorities - specific timeframes and formats are set by legislation and administrative rules.
Whether you need a statutory audit depends on legal form, size and other factors such as whether your company is a public interest entity. National law sets thresholds and criteria for mandatory audits. If you are unsure, check with a licensed auditor or a lawyer who can review your company data and tell you if an audit is required.
If the National Revenue Agency (NRA) initiates an audit you should preserve all relevant books and documents, cooperate within legal limits and consider legal representation. A lawyer can help manage communications, protect procedural rights, request clarifications, and prepare appeals against assessments.
Retention periods vary by document type and legal rule. Tax authorities usually require records to be retained for multiple years. As a practical rule, keep accounting and tax records for several years after the year they relate to and confirm precise retention periods with a lawyer or your accountant to avoid unintended destruction before statutory timeframes expire.
Yes, auditors and accountants can face professional liability for negligent work, omissions or fraud. Professional bodies may impose disciplinary measures and affected parties can bring civil claims for damages. In serious cases criminal liability may be possible. Engagement letters and professional indemnity insurance are important protections for both clients and professionals.
Look for proper qualifications and registration with the relevant national professional body, experience in your industry, clear scope of services in the engagement letter, professional indemnity insurance and references from other clients. Confirm whether the provider will prepare reports in Bulgarian and will handle filings with local authorities if needed.
Penalties can include administrative fines, interest on unpaid taxes, additional tax assessments, disallowance of expenses and, in severe cases, criminal charges for deliberate misrepresentation. Penalties depend on the nature and seriousness of the violation and whether it was intentional or accidental.
Accounting policies should be applied consistently. Changes are allowed in certain circumstances but must be justified, disclosed in financial statements and applied in accordance with the applicable accounting rules. Consult your auditor or lawyer before making material policy changes.
Yes. Electronic records and e-invoices are commonly used, but they must meet legal requirements for authenticity, integrity, accessibility and storage. Electronic signatures, archiving rules and data protection obligations apply. Verify that your systems comply with legal and tax authority expectations.
Preserve evidence and limit access to original records. Notify senior management and seek immediate legal and forensic accounting advice. Depending on the facts you may need to report to authorities. A lawyer can help coordinate an internal investigation and advise on legal reporting obligations.
Cross-border operations raise specific VAT, transfer pricing and documentation obligations. You may need to register for VAT in other jurisdictions, prepare transfer pricing documentation and ensure that intercompany transactions meet arm's length principles. A lawyer with tax expertise or a specialized tax advisor can guide you through compliance and documentation requirements.
Below are national and local bodies, professional organizations and authorities that can be helpful when you need legal or accounting guidance in Sliven.
- National Revenue Agency - regional directorate and local tax offices in Sliven
- Registry Agency - Trade Register and company filings
- Ministry of Finance - legislative guidance and accounting rules
- Audit Oversight Agency - oversight of statutory auditors and audit quality
- Chamber of Independent Auditors in Bulgaria - professional body for auditors
- Institute of Certified Public Accountants / other certified accountant associations - professional accounting organizations
- Commission for Personal Data Protection - data privacy rules and guidance
- Regional Court and administrative bodies in Sliven - for litigation and administrative appeals
- Local certified auditors and accounting firms operating in Sliven - for practical services and consultations
- Gather your documents - collect recent financial statements, tax filings, accounting records, audit reports, engagement letters and any notices from authorities so that a lawyer or auditor can review them efficiently.
- Get an initial consultation - contact a lawyer with experience in accounting and tax law or a qualified auditor. Ask about their experience with companies like yours and their approach to disputes and audits.
- Prepare questions - bring specific questions and identify outcomes you want to achieve, for example minimizing exposure in a tax audit, defending against an assessment or fixing bookkeeping weaknesses.
- Review engagement terms - request a written engagement letter that defines the scope, fees, deliverables and confidentiality and liability terms before work begins.
- Act promptly - many administrative procedures have strict deadlines. Early legal involvement improves the chances of a favorable outcome and helps avoid procedural missteps.
If you need step-by-step help, start by arranging a meeting with a lawyer or auditor who practices in Sliven and can review your case in light of the current Bulgarian rules and local administrative procedures.
