VAT registration in Bulgaria in 2026 depends mainly on your annual turnover, the type of transactions you perform, and whether you are established in Bulgaria or abroad. The rules have just tightened, so understanding when you must register and how the process works is crucial if you want to avoid penalties and unpleasant surprises.
When VAT registration is mandatory
In 2026, most businesses must register for VAT once their taxable turnover reaches a specific annual threshold, but there are also situations where registration is required even below that limit.
- The general mandatory threshold is now the equivalent of EUR 51,130 turnover per calendar year, calculated over all relevant taxable and some exempt supplies in Bulgaria.
- Turnover is monitored on a calendar-year basis, not on a rolling 12‑month period, so you need to track sales from 1 January each year.
- Once your turnover exceeds the threshold, you have 7 days to submit a VAT registration application; VAT becomes chargeable on the first taxable supply after you are deemed registered.
- Certain activities trigger mandatory VAT registration regardless of turnover, such as intra‑EU acquisitions above specific limits or regular trading in real estate and some financial services.
Special rules for property and specific transactions
Recent amendments significantly affect people and companies dealing with real estate and other “borderline” activities.
- VAT‑exempt real estate sales (such as old apartments) are now generally included in the turnover calculation for the threshold, unless they qualify as ancillary or incidental to your normal activity.
- Individuals who regularly buy and sell properties may become “taxable persons” and have to register if they exceed the threshold, even if their sales are partly VAT‑exempt.
- Sales of long‑term business assets (e.g., an office building used in the business) are excluded from the turnover for VAT registration, but systematic trading in property is not.
Foreign and cross‑border businesses
If you are a foreign business supplying goods or services in Bulgaria, your VAT position may differ from a locally established company.
- From 1 January 2026, foreign suppliers who deliver goods with installation or assembly in Bulgaria generally have to register for Bulgarian VAT before their first transaction, as the reverse‑charge mechanism no longer applies to these contracts.
- Non‑resident businesses making taxable supplies in Bulgaria that are not fully covered by reverse charge must register even if their turnover is below the local threshold.
- Distance‑selling and other cross‑border B2C services may fall under EU OSS rules, but in some cases local Bulgarian registration is still required depending on the nature of supplies.
Voluntary VAT registration: when it helps
Even if you are below the threshold, voluntary registration can be beneficial for some businesses.
- If you have significant input VAT on costs (equipment, rent, professional services), voluntary registration allows you to deduct that VAT, reducing your overall expenses.
- Operating as a VAT‑registered entity can improve credibility with corporate clients, especially those that are themselves VAT‑registered and can reclaim VAT on your invoices.
How to register for VAT the right way
The actual process is relatively structured, but mistakes and delays are common if the rules are misunderstood.
- VAT registration is done by filing an application with the National Revenue Agency (NRA), usually electronically, providing company identification data, activity description, and turnover evidence.
- The NRA reviews your documents and may request contracts, invoices, or bank statements to verify that you meet the criteria (mandatory or voluntary); after approval, you receive a Bulgarian VAT number and must start issuing invoices in compliance with the VAT Act.
- Once registered, you must submit periodic VAT returns and keep proper records; late registration, late filing, or incorrect application of VAT can lead to back‑dated VAT liabilities and penalties.
