Council of Ministers submitted a VAT Act amendment to adopt the EU small enterprises scheme, setting new thresholds, simplified procedures, and updated registration rules.
Bulgaria’s Council of Ministers has submitted a draft amendment to the VAT Act to parliament, aiming to implement the European Union’s small enterprises VAT scheme.
Any small enterprise with a total annual turnover of no more than EUR 100 000 (or the equivalent in national currency) in all Member States in the current calendar year and in the previous calendar year is eligible for the VAT exemption in its Member State of establishment (MSEST) and/or in other Member State(s) under the cross-border SME scheme.
The draft revises mandatory VAT registration rules for domestic, EU, and non-EU suppliers. It limits input VAT deductions for purchases linked to supplies under the small enterprises regime and establishes new deadlines for invoicing and corrections when registration occurs after exceeding the threshold.
The proposal also introduces a national turnover threshold of EUR 51,130 and an EU-wide threshold of EUR 100,000, along with options for businesses to pay VAT under a domestic or EU regime, or both.
Simplified procedures are proposed, including no VAT on supplies covered by the scheme and special VAT IDs ending in “-EX” with specific invoicing rules.
Earlier, Bulgaria’s National Revenue Agency (NRA) issued a guidance, on 31 March 2025, regarding revisions to the VAT registration threshold, which took effect on 1 April 2025.
