Upcoming Changes to Bulgaria’s VAT Registration Threshold and Non-EU Business Rules

Type: Legislation

Bulgaria plans to raise the annual VAT registration threshold from BGN 100,000 to BGN 166,000, effective 1 January 2025, aligning with the EU SME VAT threshold. This change will exempt approximately 200,000 companies in Bulgaria from mandatory VAT registration. Depending on how many companies de-register, the state anticipates a revenue loss of 85-130 million leva. Additionally, non-EU businesses registering under the non-Union OSS/IOSS in Brussels will no longer be required to appoint a fiscal representative. Bulgaria’s VAT rate remains at 20%.

Effective date: 20 December 2024

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