A newly registered Bulgarian company is not automatically a VAT payer. It enters the system when its turnover crosses the threshold, when it buys certain services or goods from abroad, or when it chooses to register voluntarily. Missing a trigger is one of the most common — and most expensive — compliance mistakes for young companies, because VAT that should have been charged can still be claimed, with interest and fines.
The turnover threshold
From 2026 the threshold is EUR 51,130 of taxable turnover in the calendar year, counted from 1 January. Once a company crosses it, it must apply for registration within seven days, and VAT applies to its supplies from that point. Turnover includes most sales of goods and services in Bulgaria; exempt supplies, such as most residential rents, are left out.
Triggers that do not depend on turnover
- Services from abroad: a company that receives services from a foreign supplier that are taxable in Bulgaria — software subscriptions, advertising, consulting — must register, even with no sales of its own. Many start-ups trip on this through ordinary online subscriptions.
- Goods from other EU countries: purchases above an annual limit make registration compulsory.
- Selling to consumers in other EU countries: above EUR 10,000 a year EU-wide, VAT is due in the customer's country, usually through the EU One-Stop Shop.
- Foreign businesses: a company established abroad that supplies taxable goods or services in Bulgaria may have to register here; businesses from outside the EU usually do so through an accredited representative.
Should you register voluntarily?
Voluntary registration is possible at any time. It lets the company deduct the VAT it pays on its costs — useful when its clients are businesses that can deduct VAT themselves, or when set-up costs are high. The drawbacks are the monthly administration and, for sales to consumers, 20% added to the price. A short calculation of expected costs and client types usually settles the question.
What changes after registration
Invoices
VAT invoices must be issued within five days of the supply and contain the required details, including both parties' VAT numbers where applicable.
Monthly return
A VAT return with sales and purchase ledgers is filed, and any VAT due is paid, by the 14th of the following month — even in months with no activity.
EU reporting
Supplies to VAT-registered customers in other EU countries are also reported in a monthly recapitulative statement.
Records
Invoices, ledgers and contracts are kept so that input VAT can be defended in an audit.
Questions clients ask
Our company was just registered. Do we need a VAT number straight away?
Not usually. Unless one of the triggers above applies — most often paid services from foreign suppliers — the company can stay outside VAT until its turnover approaches the threshold. We check your expected suppliers and clients when the company is formed.
We crossed the threshold in March. What happens to the sales before that?
VAT applies from registration onwards; earlier sales stay outside VAT. The risk lies in applying late: VAT on sales made after the deadline can be assessed even if it was never charged to the customer.
Can a company deregister if turnover falls?
Yes, under conditions set in the VAT Act, but deregistration can require VAT to be paid back on assets for which VAT was deducted. It is worth planning rather than doing automatically.
This guide is general information about Bulgarian law as it stood on the date of publication. It is not legal advice for your specific case.
