site.btaParliament Rejects on First Reading Continue the Change's Proposed Amendments to Value Added Tax Act

Parliament rejected on first reading on Wednesday a bill to amend and supplement the Value Added Tax Act (VAT Act), submitted by  Ivaylo Shotev and a group of MPs from Continue the Change (CC). Thirty-nine MPs voted in favour of the proposed amendments, six against, while 119 abstained.

The bill provides for raising the VAT registration threshold to EUR 84,874 in order to reduce the administrative and financial burden on small and micro enterprises and encourage entrepreneurship.

Raising the threshold for mandatory VAT registration will benefit thousands of small traders, craftspeople, start-ups and self-employed professionals, CC Deputy Floor Leader Shotev said. This will enable these businesses and workers to invest in improving the services and products they offer, he added.

"We are putting forward this initiative because we do not see such a proposal coming from the Council of Ministers," said CC Chair Assen Vassilev. He called for the bill to be adopted and for the measure to be discussed with the Finance Ministry between the first and second readings, with a view to finding an appropriate VAT registration threshold.

Progressive Bulgaria MP Konstantin Prodanov said that the proposed measure had positive aspects, but its impact on the State budget needed to be assessed. “I accept the argument that this will help small and medium-sized businesses,” he said. Prodanov said that the issue was being discussed with the Finance Ministry as part of the 2027 budget procedure. He said that an analysis was needed of the fiscal impact of gradually raising the threshold.

Progressive Bulgaria MP Milen Trifonov said there was consensus that the VAT registration threshold should be reconsidered. “We expect the Ministry of Finance to submit a package of such legislative measures very soon,” he added.

“We will continue to believe that in a situation where it is claimed that there is a crisis in public finances, there is no room for seeking opportunities to reduce budget revenues,” said GERB-UDF Temenuzhka Petkova.

“This is one of the most meaningful reforms that can be made. We also have such a bill,” said Democratic Bulgaria MP Martin Dimitrov.

Vazrazhdane MP Dimo Drenchev said that his party would support the bill. He said that they also submit such a proposal every year during budget discussions.