Accounting & tax glossary
Short, plain-language answers to the terms you'll meet running a business in Latvia, Bulgaria or Montenegro — and how Bilenta handles each one.
General
- Double-entry accounting
- A method where every transaction is recorded in two accounts — one debit, one credit — so the books always balance; it's the basis of compliant financial statements.
- Peppol
- A pan-European network and format (BIS Billing 3.0 / UBL 2.1) for exchanging structured electronic invoices between businesses and public bodies across the EU.
- VAT
- Value-added tax, a consumption tax charged at each stage of the supply chain — called ДДС in Bulgaria and PDV in Montenegro.
- Reverse charge
- A VAT rule where the buyer, not the seller, accounts for the VAT — common in cross-border EU business-to-business sales.
- Bank reconciliation
- Matching the entries in your accounting system against your bank statement so the two agree, catching anything missing or duplicated.
Bulgaria
- НАП (NRA)
- Bulgaria's National Revenue Agency, where VAT ledgers, returns and other filings are submitted.
- ДДС
- Bulgarian value-added tax (VAT), reported with purchase and sales ledgers known as дневници.
- МОД
- Bulgaria's minimum insurable income thresholds, set by activity and qualification group and used to calculate social-security contributions.
- ЕГН
- The Bulgarian personal identification number used throughout payroll and tax filings.
- SAF-T
- Standard Audit File for Tax — a standardised data file tax authorities can request; Bulgaria is introducing it in phases from 2026.
- ЗКПО
- Bulgaria's Corporate Income Tax Act, which sets tax-depreciation categories and the book-to-tax differences used in the annual CIT return.
Latvia
- VID EDS
- Latvia's State Revenue Service (VID) Electronic Declaration System — the portal where VAT, payroll and other returns are filed.
- VSAOI
- Latvia's mandatory state social-insurance contributions, deducted and paid through payroll.
Montenegro
- PDV
- Montenegrin value-added tax (VAT).
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