Parliament approved at first reading amendments to the Value Added Tax Act, submitted by the Council of Ministers, providing for a gradual increase in the VAT registration threshold over the next three years. A total of 122 MPs from Progressive Bulgaria voted in favour. The opposition voted against, with 49 votes from GERB-UDF, the Movement for Rights and Freedoms (MRF), five MPs from Democratic Bulgaria (DB), two from Continue the Change (CC), and the parliamentary group of Vazrazhdane. Eighteen MPs abstained, including seven from CC and 11 from DB.
The government-sponsored bill envisages a gradual increase in the VAT registration threshold to EUR 60,000 in 2027, EUR 70,000 in 2028 and EUR 75,000 in 2029. Small businesses whose turnover does not exceed the threshold will retain the option of voluntarily applying the standard VAT regime. The amendments also introduce mandatory electronic invoicing and real-time reporting for domestic supplies from 2028. The change is intended to align national requirements with the European VAT in the Digital Age (ViDA) framework, under which EU Member States are required to introduce mandatory electronic invoicing for cross-border supplies into their national legislation from July 1, 2030.
Deputy Finance Minister Lyudmila Petkova said that electronic invoicing aims to enable real-time VAT tracking, reduce the administrative burden on businesses, combat VAT fraud, address inaccuracies in reporting, increase budget revenue and facilitate digital monitoring of transactions. VAT-registered businesses will be required to issue electronic invoices for domestic supplies through a national portal maintained by the National Revenue Agency, the deputy minister explained.
Regarding the increase in the VAT registration threshold, Petkova said that the objective is to reduce the administrative and financial burden on microenterprises, small businesses and start-ups, while creating better conditions for entrepreneurship. She added that the government had not proposed the maximum threshold of EUR 85,000 permitted under EU rules because it had taken into account the specific characteristics of Bulgaria’s national economy.
Two separate bills submitted by Martin Dimitrov of Democratic Bulgaria and Dimo Drenchev of Vazrazhdane proposed raising the mandatory VAT registration threshold to EUR 85,000, but were rejected in the plenary hall.
Dimitrov said that this would exempt approximately 400 small businesses from this tax burden.
Assen Vassilev of Continue the Change recalled that the VAT registration threshold had already stood at EUR 85,000 between January and March 2025, before subsequently being lowered.

Gradual Increase of VAT Registration Threshold Passes on First Reading in Parliament THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-11-12 03:26:28

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