site.btaSmall Businesses Exempt from VAT on Intra-Community Supplies Up to Threshold

The National Assembly voted on Wednesday at second reading to amend the Value Added Tax (VAT) Act. The changes regulate the conditions for applying special VAT schemes for small enterprises, both for entities established in Bulgaria and for those established in another EU Member State.

The Assembly approved that small businesses in Bulgaria will be exempt from the obligation to charge VAT up to the registration threshold (EUR 51,130 / BGN 100,000) when making intra-Community supplies.

The small enterprise regime in Bulgaria may be applied by any taxable person established in the country who supplies goods and services with the place of supply in Bulgaria and whose annual turnover in the country does not exceed the national threshold of EUR 51,130 in a calendar year. This will also apply to supplies of goods and services with the place of supply in another Member State.

The new provisions ensure that, when applying the national threshold, no distinction is made between taxable persons established in Bulgaria and those established abroad.

A proposal by MPs Martin Dimitrov and Bozhidar Bozhanov (Continuing the Change – Democratic Bulgaria) to raise the VAT registration threshold from BGN 100,000 (EUR 51,130) to BGN 166,000 (EUR 84,874) from next year was rejected. The threshold remains EUR 51,130 in 2026.