Bulgaria Amends VAT Act from 1 January 2026
Bulgaria has enacted amendments to its Value Added Tax Act, published in State Gazette No. 115 of 30 December 2025. The changes were adopted by the National Assembly on 17 December 2025 and enter into force on 1 January 2026.
Reverse Charge Rule Removed for Installation Supplies
One of the key changes is the repeal of Article 82(2)(2) of the VAT Act. This provision had assigned VAT liability to the recipient for certain supplies of goods installed or assembled in Bulgaria by suppliers established in another EU Member State.
Following the repeal, EU suppliers making taxable supplies of goods with installation or assembly in Bulgaria may need to account for Bulgarian VAT directly, unless another reverse-charge or special regime applies.
New Registration Rules for Foreign Suppliers
The amendments also replace Article 96 with new registration rules. EU-established taxable persons that do not apply Bulgaria’s EU small enterprise regime must register for Bulgarian VAT before the date on which VAT becomes chargeable on their first taxable supply with a place of supply in Bulgaria, unless the supply is covered by the Union scheme or VAT is due by the recipient.
Non-EU taxable persons are subject to a similar registration obligation before their first taxable supply in Bulgaria, unless a special scheme applies or VAT is due by the recipient.
EU Small Enterprise Regime Introduced
The law introduces a new chapter on special regimes for small enterprises. It implements the EU small enterprise framework and allows eligible taxable persons established in Bulgaria or another EU Member State to apply a VAT exemption regime where turnover thresholds are met.
The national annual turnover threshold is set at EUR 51,130, while the EU-wide threshold is EUR 100,000. Businesses applying the regime will not charge VAT on supplies covered by it and will use identification numbers ending in “-EX”.
Input VAT and Compliance Changes
The amendments restrict input VAT deduction for goods and services used for supplies covered by the small enterprise regimes. They also introduce new invoicing, reporting, registration and deregistration rules linked to those regimes.
Additional changes address virtual access to events, fiscal receipts issued by self-service machines, de minimis aid rules, and accounting-related amendments.
Entry into Force
The amendments enter into force on 1 January 2026.
Source: Bulgaria, State Gazette No. 115 of 30 December 2025, Law Amending and Supplementing the Value Added Tax Act.