Bulgaria’s National Assembly is considering proposals to raise the mandatory Value Added Tax (VAT) registration threshold to EUR 85,000, with related draft legislation also supporting the change. The reform aims to reduce compliance burdens for small businesses.
Bulgaria’s National Assembly is considering proposals to raise the mandatory Value Added Tax (VAT) registration threshold to EUR 85,000, up from the current level of around EUR 50,130–51,130.
Members of parliament have submitted two separate proposals on the change. The measures will now proceed to voting in two readings.
A related draft law to amend the Value Added Tax Act also supports increasing the threshold to approximately BGN 166,000 (EUR 85,000), with a planned effective date of 1 January 2027.
According to the accompanying explanations, the higher threshold is intended to reduce administrative and compliance burdens for small and micro-businesses. It is also aimed at allowing smaller enterprises to focus more on business growth rather than VAT reporting obligations.
The proposals state that the reform is expected to encourage entrepreneurship, strengthen Bulgaria’s competitiveness within the European Union, and better align the VAT system with EU standards. While a short-term reduction in tax revenue is expected, the assessment suggests this could be offset by stronger economic activity in the longer term.
