VAT Registration in Bulgaria — Thresholds, Rates & Procedure (2026)

The VAT system in Bulgaria

Bulgaria applies the VAT system in accordance with Council Directive 2006/112/EC. The standard rate is 20 %, and the reduced rate is 9 % for certain goods and services. All persons carrying out independent economic activity are subject to registration upon reaching a certain taxable turnover threshold.

VAT is administered by the National Revenue Agency (NRA). Returns are filed monthly by electronic means.

Mandatory VAT registration

This is a significant change from previous years when the threshold was monitored over the last 12 consecutive months. From 2026, the system shifts to one based on the calendar year.

When does the obligation arise?

• The obligation to file an application arises within 7 days of the date on which the turnover exceeds the EUR 51,130 threshold.
• VAT is charged from the day after exceeding the threshold.
• The NRA issues a VAT number within 7 business days of filing the application.

How is taxable turnover determined?

Taxable turnover includes the value of all taxable supplies made, including those at zero rate. It does not include supplies of financial and insurance services (unless ancillary), supplies of fixed assets used in the business, and intra-Community acquisitions.

Voluntary VAT registration

Any taxable person may register for VAT voluntarily, regardless of turnover. Voluntary registration is recommended in the following cases:

• Working with EU counterparties — to apply the reverse charge mechanism and properly report intra-Community supplies.
• Significant VAT expenses — if the company makes large investments or purchases, VAT registration allows for input tax credit deduction.
• Exports — for exports outside the EU, supplies are zero-rated, but the company can deduct input VAT on purchases.
• Image — VAT registration can increase credibility when working with larger corporate clients.

Voluntary registration does not trigger VAT liability for past periods. The company is bound by the registration for a minimum of 24 months, after which it may request deregistration.

Other grounds for registration

• Intra-Community acquisition (ICA) — for ICA exceeding BGN 20,000 (EUR equivalent) for the current calendar year.
• Distance sales — for sales of goods to individuals in other EU member states under the OSS (One-Stop Shop) scheme.
• Reverse charge — when receiving services from a supplier established in another member state, where the recipient is a taxable person in Bulgaria.
• Supply of services under Art. 21(2) of the VATA — when providing services to taxable persons in other EU member states.

VAT rates (2026)

VAT returns and reporting

VAT-registered persons file the following documents:

• Monthly VAT return — filed by the 14th day of the month following the tax period. Filing is mandatory electronically.
• Purchase and sales ledgers — filed together with the return.
• VIES declaration — filed when making intra-Community supplies or receiving services from/to persons in other EU member states.

Failure to file a VAT return on time is subject to a penalty of EUR 250 to EUR 5,000.

VAT refunds

When input tax credit (VAT on purchases) exceeds output VAT (on sales), a right to a refund arises:

Standard procedure

• The overpaid VAT is offset against VAT due for the next 2 months (carry-forward).
• If after 2 months there is still a balance, it is refunded within 30 days of filing the return for the third month.

Accelerated procedure

• Applicable for companies where 30 % or more of taxable turnover is zero-rated (exports, ICS).
• Refund within 30 days of filing the return, without a carry-forward period.

The statute of limitations for claiming a refund is 5 years from the date of the taxable event.

VAT on real estate transactions

EU SME scheme from 2026

From 1 January 2026, a new EU SME scheme (Directive 2020/285) takes effect, allowing small enterprises to benefit from VAT exemption in other EU member states:

• National threshold — EUR 51,130 for Bulgaria (taxable turnover for the calendar year).
• EU threshold — EUR 100,000 total turnover across the entire EU.
• Persons meeting both thresholds receive a special identification number with the suffix "-EX".
• The scheme allows making exempt supplies in other EU member states without the need for local VAT registration.

The scheme is particularly useful for freelancers and small companies providing services in several EU member states.

Intrastat thresholds (2026)

The Intrastat system is used for statistical reporting of trade in goods between EU member states. For 2026, the thresholds for Bulgaria are:

Companies whose intra-Community trade exceeds these thresholds are required to file monthly Intrastat declarations.

Frequently asked questions