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When should you register for VAT in Bulgaria?
Prefer watching instead of reading? Watch the video version: When Must You Register for VAT in Bulgaria? 6 Key Situations (2026)
Many business owners believe VAT registration is required only after reaching the standard turnover threshold. However, VAT registration may be required much earlier, depending on your clients, suppliers, and transactions.
First, registration based on turnover.
From 1 January 2026, a business established in Bulgaria generally becomes subject to mandatory VAT registration when its annual taxable turnover exceeds 51,130 euros.
The turnover is monitored for the calendar year, from 1 January to 31 December. Once the threshold is exceeded, the registration application must generally be submitted within seven days.
Second, services provided to EU business clients.
A Bulgarian company or freelancer may need VAT registration under Article 97a before providing certain services to a business established in another EU country.
This commonly applies to consulting, IT services, software development, digital marketing, design, and other professional services.
The obligation may arise before the first invoice, even when the value of the service is very small.
Third, services received from foreign suppliers.
Article 97a registration may also be required when a Bulgarian business receives services from a foreign company.
Examples include:
- Google or Meta advertising.
- Foreign software and subscriptions.
- Hosting and cloud services.
- Consulting and platform fees.
Fourth, purchases of goods from other EU countries.
A business that is not fully VAT registered may need a special VAT registration when its intra-EU acquisitions of goods exceed 10,000 euros during the calendar year.
Fifth, foreign companies storing or selling goods in Bulgaria.
A foreign company may need Bulgarian VAT registration if it imports goods into Bulgaria, transfers its own stock to a Bulgarian warehouse, or sells goods that are already located in Bulgaria.
In many cases, registration may be required from the first relevant transaction, without waiting to reach the normal turnover threshold. Simply renting warehouse space does not automatically create every possible VAT obligation, so the complete movement and sale of the goods must be reviewed.
Sixth, voluntary VAT registration.
A business may also register voluntarily before reaching the mandatory threshold. This may be useful when most clients are VAT-registered businesses or when the company has significant expenses and investments with Bulgarian VAT.
These are some of the most common situations, but they are not a complete list. Other transactions and special VAT rules may also create a Bulgarian VAT registration obligation.
The correct time to register depends not only on your turnover, but also on where your clients, suppliers, and goods are located.
This article provides general information and does not constitute individual tax, accounting or legal advice. VAT treatment depends on the facts of each transaction and should be reviewed separately.