Bulgaria Imposes Higher VAT Penalties

In short: Bulgaria's 2024 VAT rules raised penalties for breaching VAT and fiscalization laws. Individuals can be fined up to BGN 4,000 and legal entities up to BGN 40,000 for repeated offenses. The fines also reach cashiers, importers, manufacturers and fiscal device service providers.

Update (October 2026): Bulgaria joined the euro area on 1 January 2026, so BGN amounts now convert to euro at the fixed rate of BGN 1.95583 per euro. Since 1 February 2026, the euro has been Bulgaria's only legal tender (source: European Central Bank).

What are Bulgaria's new VAT and fiscalization penalties?

Bulgaria's new VAT penalties are higher fines for failing to comply with fiscalization and VAT laws and their obligations. They came with new VAT regulations introduced in 2024. The penalties for breaking VAT and fiscalization rules are now as follows:

1. If a person fails to provide a fiscal document or receipt, these penalties apply:

• Individuals will be fined between BGN 200 and BGN 1,000, whereas legal entities face fines ranging from BGN 1,000 to BGN 4,000. 
• Subsequent fines: Individuals are subject to a fine ranging from BGN 400 to BGN 2,000, and legal entities or companies face fines from BGN 2,000 to BGN 8,000.

2. Penalties for other breaches of VAT regulations include fines from BGN 600 to BGN 2,000 for individuals, and from BGN 6,000 to BGN 20,000 for legal entities.

3. For repeated offenses, the fines increase to a range of BGN 1,200 to BGN 4,000 for individuals and BGN 12,000 to BGN 40,000 for legal entities.

4. When obligated individuals fail to issue fiscal receipts, fines range from BGN 200 to BGN 1,000.

5. A fine of BGN 10 applies for not keeping fiscal receipts.

6. Cashiers or employees who do not issue fiscal receipts face fines ranging from BGN 200 to BGN 1,000.

7. Fines also apply to manufacturers, importers, or individuals servicing fiscal devices.

What are the penalties for late VAT registration or late VAT returns in Bulgaria?

Late VAT registration and late VAT returns each carry a fine of at least BGN 500 in Bulgaria. The European Commission's summary of Bulgarian VAT rules lists these ranges:

• No registration or late registration: BGN 500 to BGN 5,000 (Article 178 of the VAT Act).
• Late or missing VAT return: BGN 500 to BGN 10,000 (Article 179).
• Incorrect return that leads to underpaid VAT: a fine equal to the underpaid VAT, and at least BGN 1,000 (Article 182).
• Invoicing failures: a fine equal to the underpaid VAT, but only when the failure leads to VAT being underpaid.

What happens if VAT is charged late in Bulgaria?

The fine depends on how late the VAT is charged. If it is not charged at all, the fine equals the tax due, and is at least BGN 500. For repeat offences, the minimum is BGN 1,000.

• Charged within six months: 5% of the tax, and at least BGN 200 (BGN 400 for repeat offences).
• Charged after six months but within 18 months: 10% of the tax, and at least BGN 400 (BGN 800 for repeat offences).

For example, a business charges BGN 6,000 of VAT four months late. 5% of BGN 6,000 is BGN 300, which is above the BGN 200 minimum, so the fine is BGN 300. If it charged the VAT ten months late, the fine would be 10%, or BGN 600.

Sellers of telecoms, broadcasting and electronic services to consumers face a separate rule. Uncharged or late-charged VAT on these services costs 25% of that VAT, and at least BGN 250 (Article 180b).

The VAT Act sets these amounts in BGN. Since Bulgaria joined the euro, they convert at BGN 1.95583 per euro, so a BGN 500 fine equals about €255.65.

What does this mean for businesses?

The higher fines affect any business that must issue fiscal receipts in Bulgaria, and its staff. Repeat offences double the fines, so one weak point in your tills can become costly.

• Make sure every sale that needs a fiscal receipt gets one, and train cashiers on the rules.
• Check that your fiscal devices work and are serviced by an authorised provider.
• Keep receipts and records so you can show compliance during an inspection.
• Review your tills and invoicing settings after the switch to the euro.

For VAT rates, registration and filing rules, see our Bulgaria VAT manual.

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Related guides

• Amendments to Bulgarian VAT Legislation
• Bulgaria to Lower VAT Registration Threshold from April 2025
• CJEU's “Bad Debts” Judgment Prompts Rethink on VAT Refunds in Bulgaria