Key takeaways
- Bulgaria will reduce its VAT registration threshold from BGN 166,000 (€85,000) to BGN 100,000 (€51,000) starting April 1, 2025.
- The change aligns with the EU small business scheme, expanding the tax base and promoting compliance.
- More small and medium-sized enterprises (SMEs) will now need to register for VAT.
- Businesses nearing the new threshold should review turnover levels and prepare documentation early.
- The reform aims to increase transparency and align with EU VAT policy.
As part of its newly approved State Budget Bill for 2025, Bulgaria is set to lower its VAT registration threshold from BGN 166,000 (approx €85,000) to BGN 100,000 (approx €51,000). The change, effective from April 1, 2025, marks a significant shift for businesses operating in the country.
Initially proposed as part of a delayed draft bill aligned with the EU small business scheme for cross-border supplies, this adjustment aims to expand the VAT base and bring more businesses into compliance with EU VAT standards.
Companies trading in Bulgaria should review their turnover and prepare for the new threshold, ensuring they’re ready to register for VAT if they exceed BGN 100,000 in taxable turnover from April onwards.
Frequently asked questions
When does the new threshold take effect?
On April 1, 2025, the VAT registration limit drops to BGN 100,000.
What was the previous threshold?
BGN 166,000 (approximately €85,000).
Who will be affected most?
Small and mid-sized enterprises approaching or exceeding the new threshold.
Why is Bulgaria making this change?
To align with EU VAT rules and broaden the taxable base.
What should businesses do now?
Monitor turnover, assess registration needs, and prepare VAT documentation in advance.
How will this impact cross-border suppliers?
Foreign suppliers making taxable sales in Bulgaria must also comply once thresholds are met.
Where can I verify registration rules?
On the Bulgarian National Revenue Agency website or through EU VAT guidelines.
