This is for founders running or setting up a Bulgarian company who need to know when VAT registration becomes mandatory — including the cross-border traps that hit before any turnover threshold.
The general VAT-registration threshold for a taxable person established in Bulgaria is €51,130 of annual taxable turnover in Bulgaria. From 2026, the test is based on the calendar year. Once the threshold is crossed, the application must generally be filed within seven days.
When must a Bulgarian business register for VAT?
The general VAT-registration threshold for a taxable person established in Bulgaria is €51,130 of annual taxable turnover in Bulgaria. From 2026, the test is based on the calendar year. Once the threshold is crossed, the application must generally be filed within seven days.
The general threshold
| Trigger | Registration position | Action |
|---|---|---|
| Annual Bulgarian taxable turnover exceeds €51,130 | Mandatory full VAT registration | Apply within seven days after crossing the threshold. |
| Below €51,130 | Voluntary registration may be possible | Consider input VAT recovery and B2B customer expectations. |
| Threshold restarts | Calendar-year basis from 1 January 2026 | Monitor turnover monthly, especially in fast-growth businesses. |
The zero-threshold traps
The €51,130 threshold is not the only registration trigger. Many foreign-owned startups must register earlier because they buy or sell cross-border services. These special registrations can arise regardless of turnover.
| Situation | Common legal basis | Why it triggers |
|---|---|---|
| Receiving services from a foreign supplier | Article 97a | A Bulgarian business receives a service for which it accounts for Bulgarian VAT, such as advertising, software or platform services. |
| Supplying B2B services to a VAT-registered customer in another EU state | Article 97a | The customer reverse-charges VAT, but Bulgarian supplier registration and VIES reporting may be required. |
| Intra-Community acquisition of goods | Special acquisition rules | Registration can arise once relevant purchase thresholds or facts are met. |
| Holding goods in another EU country | Local VAT rules in that country | Usually requires local registration; OSS does not solve stock-location registration. |
What does a VAT number change?
| Activity | Typical VAT outcome |
|---|---|
| Domestic Bulgarian B2B/B2C sale | Charge Bulgarian VAT, normally 20% unless a reduced/exempt rule applies. |
| B2B service to EU VAT business | Usually reverse charge; report transaction and check VIES obligations. |
| B2C distance sale of goods across EU | Destination VAT can apply above the EU €10,000 threshold; OSS may simplify reporting. |
| Digital B2C service across EU | Destination VAT rules often apply; OSS may be relevant. |
| Goods stored abroad | Local VAT registration commonly required before stock is held there. |
OSS: when is it useful?
The One Stop Shop (OSS) allows eligible businesses to report VAT due in other EU member states through a single Bulgarian return. It is often relevant for cross-border B2C sales of goods or digital services once the EU-wide €10,000 threshold is exceeded. It does not remove the need for local VAT registration where the business holds stock in another member state.
What are the ongoing deadlines?
| Filing | Usual deadline | Applies to |
|---|---|---|
| Bulgarian VAT return and VAT ledgers | 14th of following month | VAT-registered businesses. |
| VAT payment | 14th of following month | Where VAT is payable. |
| VIES recapitulative statement | Usually with monthly VAT compliance | Relevant intra-EU B2B supplies. |
| OSS return and payment | End of month following quarter | Businesses registered for Union OSS. |
Practical next steps
- Review foreign software, advertising and marketplace invoices before your first purchase.
- Track Bulgarian taxable turnover against the calendar-year threshold.
- Collect EU customer VAT numbers and validate them before invoicing reverse-charge services.
- Map where physical stock is held, including fulfilment-centre stock.
- Ask an accountant to review VAT before pricing, launching ads or selling across borders.
Thinking Bulgaria?
Sovereignty Global handles Bulgarian VAT analysis and registration alongside company formation, accounting and banking — so the VAT position is settled before you invoice or advertise. Explore Tax Strategy and Bulgaria, or Book a Consultation. Related: the Bulgarian EOOD explained and Bulgaria's 5% dividend tax.
Sources
- Bulgarian VAT Act, including Article 97a.
- National Revenue Agency VAT guidance.
- European Commission VAT and OSS guidance. VAT outcomes depend on facts, so confirm before issuing invoices or receiving cross-border services.