Starting from 1 January 2023, taxable individuals who are based in Bulgaria will have to register for VAT when their taxable turnover reaches BGN 100,000 (EUR 51,130) over a period of 12 consecutive months prior to the current month. This is a significant increase from the previous threshold of BGN 50,000 (EUR 25,565), and is aimed at providing tax relief for small and medium-sized enterprises (SMEs), which face high compliance costs and reduced competitiveness due to additional VAT on their goods and services.
This VAT registration turnover is expected to be raised even further after the Bulgarian VAT Act incorporates EU Directive 2020/285 in 2025. However, this new measure will not affect taxable persons who are not established in Bulgaria and are already subject to VAT registration before making taxable supplies in the country.
