The threshold for VAT registration in Bulgaria will up to BGN 100,000 from 01.01.2023

The Council of the EU allowed Bulgaria to exempt from VAT taxable persons with an annual turnover of up to 100 000 BGN

In practice, the Bulgarian VAT Act imposes a large administrative and regulatory burden, especially on micro and small enterprises. Very often, their development and growth is delayed by the investment of funds and efforts for additional accounting and reporting services.

The increase of the minimum threshold for VAT registration from BGN 50,000 to BGN 100,000, which will become a fact from January 1, 2023, will have a positive effect on business, especially in the current economic situation. This will particularly benefit micro and small businesses, and more than 90,000 companies are estimated to be affected. Persons with a taxable turnover of less than BGN 100,000 may remain voluntarily registered for VAT.

This happened after the EU Council authorized a derogation from Art. 287 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax. It is valid until December 31, 2024, after which the threshold is planned to rise up to €85,000.

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