When Do You Need to Register for VAT in Bulgaria? (2026)

VAT Registration in Bulgaria: When Do You Need It?

VAT is one of the topics where we see the most confusion. Some founders think they must register for VAT on the first day. Others think they never need it as long as the turnover is small. Both can be wrong. In Bulgaria the answer depends on two things: how much you sell, and to whom and from where you buy and sell. In this article we explain the main rules in 2026 and the situations where VAT registration comes earlier than people expect.

The basic rule: the €51,130 threshold

From 1 January 2026 a Bulgarian company must register for VAT when its taxable turnover goes over €51,130. The turnover is counted per calendar year, from 1 January to 31 December. This is new. Until the end of 2025 the rule was the last 12 months, so if you read older articles online, the information there can be out of date.
The rule also looks at the previous year. If your company went over €51,130 last year, you should already be registered this year.
The part that surprises people most is the deadline. When you go over the threshold, you have only 7 days to apply for registration. And the company counts as VAT registered from the day after the threshold was passed, not from the day the tax office confirms it. In practice this means that the invoices after that day should already include VAT. If you only notice two months later, you have a problem to fix, and sometimes it costs money.
This is why it's important that your accountant follows your turnover during the year, especially when you are getting close. It's not something to check once in December.

When you need VAT earlier

Here is where the turnover is not the only question. Many of our clients sell services to companies in other EU countries, or buy services from them, and this changes the picture.
If your company provides services to a business in another EU country, in most cases you invoice without Bulgarian VAT and the client pays the VAT in their own country. But for this, your company needs a Bulgarian VAT number, even if your turnover is far below €51,130. This is a special registration, and it's very common for consultants, IT companies and agencies.
The same is true the other way. If you pay for services from EU companies, for example software, advertising or freelancers, your company may also need to register, so the VAT can be accounted for in Bulgaria.
If you buy goods from other EU countries and the total goes over €10,226 in a year, registration is also needed.
If you sell goods online to private customers in other EU countries, there is a separate threshold of €10,000 for all EU sales together. Above this, you charge VAT of the customer's country, usually through the EU One Stop Shop system.
We can't cover every case in one article, because it really depends on what exactly you sell and where your clients are. But if your business works with other EU countries, assume that VAT is a question for the first month, not for later.

Voluntary registration

You can also register for VAT voluntarily, at any time and with any turnover. Some companies do this because their clients are businesses that can get the VAT back anyway, so for them the price doesn't really change. And a VAT number can make a small company look more established, and you can deduct the VAT on your own costs.
On the other side, VAT registration means more work. Every month there is a VAT return, even in a month with no sales, and getting out of the registration is not always quick. If your clients are mostly private people who can't get the VAT back, registering early can just make your prices 20% higher for them. So it is a real decision and not just a formality.

After you are registered

A VAT registered company files a VAT return every month. The deadline is the 14th of the following month, and any VAT to pay is due by the same date. Together with the return there are sales and purchase ledgers, and if you work with EU clients, also a report about these transactions.
The VAT rate is 20% for most things. There is a 9% reduced rate for some goods and services, for example hotel stays and books, and 0% for exports and sales of goods to EU businesses.
All of this is normally done by your accountant. What you need to do is to send the invoices and documents on time, every month. From our experience, most VAT problems are not mistakes in the law, they come from documents that arrive too late.

A note about the new small business scheme

From 2026 Bulgaria also has the EU scheme for small businesses. In simple words, a small EU company can, under some conditions, sell in other EU countries without registering for VAT there, if its total EU turnover stays under €100,000. It has its own rules and registrations, so it's worth looking at only if you sell to private customers in several countries.

In short

The general rule is simple: register when your turnover in the calendar year passes €51,130, and do it within 7 days. But if your company sells services to EU businesses, buys services from abroad or sells goods across the EU, you will probably need a VAT number much earlier. Look at this together with your accountant before you send your first invoice, not after.
VAT is only one of the regular obligations of a Bulgarian company. You can see the full picture of deadlines in our compliance calendar. And if you are not sure if VAT applies to your business, write us and tell us what you sell and where your clients are. We will check it for you.