VAT Registration in Bulgaria — When It Is Required and How to Prepare (2026)

Value-Added Tax (VAT) is one of the most important taxes for businesses in Bulgaria. Whether you’re just starting a company or already running a successful business, the question “When should I register for VAT?” will eventually become relevant. A misjudgment can lead to significant fines, while timely registration can result in serious tax advantages.

In this guide, we will take a detailed look at all types of VAT registration in Bulgaria, the current thresholds for 2025–2026, the required documents, the steps involved in the process, and the most common mistakes businesses make.

What is VAT and why is it important?

VAT is an indirect tax levied on the sale of goods and services. In Bulgaria, the standard rate is 20%. There are also reduced rates:

• 9% — for hotel accommodations, restaurant services, and baby products (food and hygiene products for children)
• 0% — for exports of goods outside the EU and intra-Community supplies (ICS) to VAT-registered entities in another EU Member State

VAT registration means that your company collects VAT from its customers and remits it to the government, but at the same time is entitled to deduct the VAT paid on its purchases (known as a tax credit). It is precisely this right to a tax credit that makes VAT registration not only an obligation but also a potential advantage.

Types of VAT Registration in Bulgaria

The Value-Added Tax Act (VATA) provides for several grounds for registration. Here are the most important ones:

1. Mandatory registration (Section 96 of the Value Added Tax Act)

Any taxpayer with a taxable turnover of EUR 51,130 or more within a calendar year is required to file an application for registration.

• Threshold: EUR 51,130 (effective January 1, 2026, following the introduction of the euro)
• Period: Calendar year
• Deadline for submission: Within 7 days of exceeding the threshold
• Who tracks the turnover: The taxpayer—that is, the company itself

EU SME Scheme: If you make supplies to other Member States and your total EU turnover is less than EUR 100,000, you can apply for VAT exemption in other Member States, which eliminates the need to register there.

Important: The threshold is calculated on a rolling basis—the National Revenue Agency (NRA) will not notify you when you reach it. It is entirely your responsibility to keep track of it.

2. Voluntary registration (Section 100 of the VAT Act)

Any taxable person may register for VAT at their own discretion, even if they have not reached the threshold of EUR 51,130.

• Threshold: None — registration is possible regardless of turnover
• Advantage: Entitlement to a tax credit from the very start of operations
• Restriction: For voluntary registration, the minimum registration period is 24 months (unless there are grounds for mandatory deregistration)

3. Registration of intra-Community acquisitions — ICA (Section 99 of the VAT Act)

If your company purchases goods from suppliers in other EU countries and the total value of these purchases exceeds EUR 20,000 for the current calendar year, you are required to register.

• Threshold: EUR 20,000 for the current calendar year
• Applies to: Non-VAT-registered entities that purchase goods from the EU
• Deadline: Within 7 days prior to the date of the taxable event that will cause the threshold to be exceeded

4. Registration for distance sales in the EU (OSS scheme)

The One-Stop Shop (OSS) scheme has been in effect since July 1, 2021. If you sell goods or digital services to end consumers (B2C) in other EU countries and the total value of these sales exceeds EUR 10,000 across all member states combined, you must charge VAT at the rate applicable in the consumer’s country.

• Threshold: 10,000 EUR in total for all Member States
• Option 1: Registering under the OSS in Bulgaria and reporting all sales centrally
• Option 2: Register for VAT in each individual Member State (impractical for most businesses)

5. Registration for the provision of services (Section 97a of the VAT Act)

If you provide or receive services from/to taxable persons in other EU Member States, you may be required to register under Article 97a, even if you have not reached the general threshold of EUR 51,130.

Step by step: the VAT registration process

Step 1: Determine the basis for registration

Review your turnover and business operations. Determine whether registration is mandatory (threshold reached, intra-Community supply of goods, services to/from the EU) or voluntary.

Step 2: Gather the necessary documents

To apply for VAT registration with the National Revenue Agency, you will need:

• Application for Registration — Based on the National Revenue Agency's Form
• Statement of taxable turnover for the past 12 months (for mandatory registration)
• Description of the company's activities
• Copies of contracts with major clients and suppliers (upon request)
• Copies of invoices for the most recent tax period (upon request)
• Title deed or lease agreement for the premises where the business is conducted
• QES (Qualified Electronic Signature) — for electronic submission

Step 3: Submit the application to the National Revenue Agency

The application must be filed with the competent regional office of the National Revenue Agency (NRA) based on the company’s place of registration. It may be filed:

• Online — via the National Revenue Agency portal using a qualified electronic certificate (recommended)
• On paper — at the relevant NRA office

Step 4: Verification by the National Revenue Agency

After the application is submitted, the National Revenue Agency will conduct an inspection within seven days. During the inspection, they may request additional documents or conduct an on-site visit.

Step 5: Issuance of a registration certificate

If everything is in order, the National Revenue Agency will issue a registration certificate within 7 days of the application being submitted. From the date of registration, you are required to:

• You charge VAT on your taxable supplies
• You issue tax invoices
• You must file a monthly VAT return (by the 14th of the following month)
• Keep records of purchases and sales

Advantages and disadvantages of early voluntary registration

Advantages

• Tax credit from day one — you can deduct VAT on all business purchases (office equipment, rent, raw materials, services)
• A better image — A VAT number conveys stability and professionalism to partners and customers
• Working with large companies — many corporate clients prefer or require suppliers that are registered for VAT
• Trade in the EU — VAT registration is practically essential for effective intra-Community trade
• Avoiding penalties — if revenue is growing rapidly, early registration eliminates the risk of missing the mandatory deadline

Disadvantages

• Administrative burden — monthly reporting, maintaining logs, stricter documentation
• Increased accounting costs — VAT-registered companies require more accounting work
• Higher prices for end consumers — if your customers are individuals (B2C), adding 20% VAT could make your services more expensive
• Minimum term — if you register voluntarily, you cannot deregister before 24 months have elapsed
• Cash flow pressure — you must pay VAT to the government by the 14th of the following month, even if the customer hasn't paid you yet

Practical advice: If your main customers are businesses (B2B) and you make significant purchases subject to VAT, voluntary registration is usually beneficial. If you primarily serve individuals and do not make large purchases, think carefully. Consult with us for a specific analysis of your situation.

Deadlines and Penalties

Meeting the deadlines for VAT registration is critical. Here’s what you need to know:

Penalties for non-compliance

• Fine for failing to submit an application on time: from EUR 250 to EUR 2,500
• For repeat violations: from EUR 500 to EUR 5,000
• Assessment of VAT due: The National Revenue Agency may assess VAT for the period during which you were required to be registered, along with late payment interest
• Denial of a tax credit: You are not entitled to deduct VAT for the period prior to your actual registration

The upper limit on penalties and the VAT charged with interest make missing the deadline significantly more expensive than registering on time.

The Most Common Mistakes in VAT Registration

1. Failure to track turnover — many companies do not track their current 12-month turnover and only become aware of the liability months later.
2. Confusion between the calendar year and 12 consecutive months — the threshold is calculated for each “rolling” 12-month period, not for the calendar year.
3. Inclusion of non-taxable turnover — not all revenue is included in taxable turnover for the purposes of the threshold.
4. Lack of preparation — submitting an application without all the required documents leads to delays and a potential rejection.
5. Lack of awareness of specific grounds — companies trading in the EU fail to comply with the obligation to register under the VAT Act or Article 97a.
6. Delay in voluntary registration — loss of the tax credit for initial investments that have already been made.
7. Failure to provide proof of a business location — The National Revenue Agency may deny registration if you cannot prove that business activities are actually being conducted at the specified address.

ConsultPlus has been preparing and filing VAT registrations for companies in Plovdiv and Sofia for over 30 years. We know what documents the National Revenue Agency (NRA) requires, the reasons for rejection, and how to avoid them. See our accounting services →

Frequently Asked Questions

Q: What is the current threshold for mandatory VAT registration in Bulgaria?
A: As of January 1, 2026, the threshold is EUR 51,130 in taxable turnover within a calendar year. The registration application must be submitted within 7 days of exceeding the threshold.

Q: Can I voluntarily register for VAT if I have zero turnover?
A: Yes. Voluntary registration is possible at any time, regardless of turnover. This can be advantageous if you are planning significant initial investments and wish to claim a VAT deduction on them.

Q: How long does the entire VAT registration process take?
A: If the documents are submitted correctly, it usually takes between 7 and 14 days. The National Revenue Agency (NRA) has a 7-day deadline for conducting an audit and issuing a decision. In practice, an additional audit may be required, which extends the timeframe.

Q: What happens if I miss the deadline for mandatory registration?
A: The fine ranges from EUR 250 to 2,500 (from EUR 500 to 5,000 for repeat offenses). In addition, the National Revenue Agency (NRA) will assess the VAT due for the period of the delay, along with late payment interest. You are not entitled to a tax credit for this period.

Q: Do I need to register for VAT if I only sell online to customers in the EU?
A: If your sales to end consumers (B2C) in other EU countries exceed a total of 10,000 EUR, you must charge VAT at the rate applicable in the respective country. You can use the OSS (One-Stop Shop) scheme to declare and pay VAT centrally in Bulgaria, instead of registering in each individual country.

Do you need help with your company’s VAT registration? The ConsultPlus team has handled thousands of VAT registrations in Plovdiv and Sofia over the past 30 years. We’ll help you determine the correct basis, prepare the documents, and submit the application to the National Revenue Agency without delay. We offer a free initial consultation—call us at +359 897 953365 or send us a message.