Accounting of a Restaurant in Bulgaria

What are the most common violations of tax legislation in restaurants and how to avoid them?

Elan Consulting offers specialized assistance in the field of tax law for restaurants, aiming to minimize the risk of violations. With our professional team of accountants and tax consultants, we can provide our clients with detailed guidance and advice on how to properly manage their business. Our support covers all aspects of tax planning and accounting, including assistance in the correct declaration of income and expenses, as well as training staff on tax requirements and norms. By focusing on transparency and legality, we help restaurants avoid potential problems with tax authorities.

In the restaurant business, compliance with tax legislation is essential. Failure to comply can lead to serious consequences, including fines and administrative penalties. The most common violations in this industry usually include:

1. Non-declaration of part of income:Restaurants often face the problem of not declaring all income, which leads to a discrepancy between real and declared taxable income. This may include incorrectly registering sales or accepting unofficial payments.
2. Use of tax fraud systems:Some establishments may resort to various schemes or software manipulations to reduce their tax liabilities. This includes the use of false invoices or fraud in the acquisition of goods and services.
3. Illegal employment:The employment of unregistered workers “by hand” or the inconsistency of employment contracts is also among the frequent violations.

To avoid these violations, restaurants must follow several key steps: registration and compliance with laws on taxation of business activities, keeping accurate and transparent accounting records, correctly declaring all income and expenses, issuing tax invoices and vouchers in accordance with the requirements of the legislation, timely payment of tax obligations, and training staff on the tax liabilities.

Take into account that tax legislation can be complex and changes periodically. Therefore, it is a good idea to consult a professional accountant or tax consultant to help you comply with all requirements and avoid potential violations.

How to protect ourselves from the inspection of the BSE and the Labor Inspectorate if we manage a restaurant?

Compliance with legal requirements is key to running a successful restaurant, especially when it comes to inspections by the Bulgarian Food Safety Agency (BAFSA) and the Labor Inspectorate. It is important to emphasize that violation of these requirements and attempts to evade checks can lead to serious legal consequences, including fines and termination of the restaurant's activities.

To protect yourself from unwanted checks and comply with the requirements, it is essential to comply with hygiene standards, register your business correctly and declare your income and expenses precisely to the tax administration. Training staff on legislation and food service and safety standards is also important, as is keeping abreast of current changes in legislation. Regular self-checks of your activity can help identify and correct possible discrepancies. In addition, consulting with professionals such as accountants, lawyers or food industry specialists can be beneficial to avoid potential problems.

What software programs will I need if I want to open a restaurant?

When opening a restaurant in Bulgaria, software programs play an important role in the effective management of various aspects of the business. Depending on the specific needs and scale of the restaurant, you can choose different software solutions. Some of the main software programs that are used in the restaurant business include:

1. POS (Point of Sale) system: This is the basic software that is used in the restaurant to process orders and payments. The POS system allows staff to enter customer orders, generate receipts, and track the current availability of goods.
2. Accounting software:To maintain transparency and efficiency in financial management, accounting software is essential. It helps you issue invoices, track income and expenses, manage staff salaries, and report taxes.
3. Personnel management: The personnel management software is useful for planning work schedules, keeping track of leave and sick leave, as well as tracking working hours and salary payments.
4. Reservation system:If you plan to accept reservations for tables in the restaurant, the online reservation system allows you to manage reservations and optimize the capacity of the establishment.
5. Delivery Software:If you offer food delivery services, delivery software helps manage delivery orders, route couriers, and track deliveries.
6. Analytical software: The analysis software provides analytical tools that allow you to track sales trends, customer preferences, menu performance, and other important data. This helps you make informed decisions about business development.

When choosing software, it is important to consider your specific needs and choose the solutions that best adapt to the size and type of your restaurant. Before investing in software programs, it is advisable to make a good assessment of the different opportunities on the market and consult with specialized consultants or representatives of software companies to choose the most appropriate solutions for your business infrastructure.

What are the requirements and documentation under HACCP in Bulgaria to open a catering establishment or restaurant?

On 30 April 2021, a National Food Safety Act was adopted in Bulgaria pursuant to Regulation (EU) No 852/2004 of the European Parliament and of the Council on the nutrition of public catering establishments. These regulations regulate the requirements and documentation under the National Food and Food Safety Program (NAFSA).

The requirements and documentation for opening a catering establishment or restaurant in Bulgaria are subject to a number of standards and rules related to hygiene, food safety and public health. Here are some of the key aspects and requirements:

In order to open a catering establishment or restaurant in Bulgaria, in accordance with the requirements of the HACCP (Hazard Analysis and Critical Control Points), it is necessary to follow specific steps and prepare specific documentation. This covers several key aspects:

1. Development of the HACCP plan:The basis of any catering establishment or restaurant is the development of a HACCP plan that identifies all potential food risks and determines the measures to control them. This plan must be individually adapted to the specific conditions and processes of each establishment.
2. Staff training:All workers involved in the food processing and preparation process must undergo training on the basics of HACCP, hygiene and food safety.
3. Documentation and records:It is necessary to keep detailed records of all procedures and control points defined in the HACCP plan. This includes monitoring critical control points, acting on deviations, as well as regular checks and updates of the plan.
4. Hygiene requirements:According to Regulation (EU) No 852/2004, establishments must comply with strict hygiene standards, including appropriate equipment, maintenance of cleanliness, pest control and proper storage of food products.
5. Building the right infrastructure:Facilities shall be designed and equipped in such a way as to minimise the risks of contamination and to facilitate the maintenance of hygiene.
6. Registration and approval by the relevant authorities:Before opening the establishment, it is necessary to obtain approval from the local health and veterinary authorities, which verify compliance with HACCP standards and other food safety requirements.
7. Continuous monitoring and evaluation:Regular monitoring and evaluation of the HACCP system is mandatory to ensure that all processes are carried out correctly and efficiently.

Compliance with these requirements is critical to ensuring food safety and customer health, as well as avoiding regulatory penalties and potential legal consequences.