VAT registration threshold 2027 — who can leave VAT and who must register

How the threshold changes

The first version of the bill (23 September 2026) proposed €75,000 from 2027. On 23 October the government, trade unions and employers agreed on the gradual schedule. Parliament will set the final figures.

What stays the same

The threshold is measured over the current calendar year — from 1 January to 31 December. Once your taxable turnover exceeds it, you have 7 days to apply for registration with the NRA. Turnover includes taxable supplies (including intra-Community and zero-rated supplies), as well as exempt supplies of financial and insurance services and of real estate, unless they are incidental to your business. Sales of the company's fixed assets are not included. The procedure is described in VAT registration — when it is mandatory and how it works.

Voluntary registration remains possible at any turnover. It pays off when your customers are VAT-registered businesses or when you make large purchases with VAT.

Who will be able to leave VAT

A company with annual turnover between €51,130 and €60,000 must be registered today. After the change, it will be able to apply for deregistration when its turnover for both the current and the previous calendar year is below the threshold. Deregistration is not automatic — you apply to the NRA.

Before you decide, work out three things:

• Your customers. If you sell to individuals, leaving VAT lets you lower your price or increase your margin. If you sell to VAT-registered businesses, they lose the input VAT credit, but their price before VAT does not change.
• VAT on your assets. On deregistration you owe VAT on goods and assets you still hold and on which you claimed input VAT — stock, equipment, cars. The amount can be significant.
• Your growth. If you will exceed the threshold next year, you will have to register again within a few months.

Example: a freelancer with €55,000 turnover

A software developer sells services only to Bulgarian companies without VAT registration and to individuals. Their turnover for 2026 is €55,000 and the expected turnover for 2027 is €56,000. Today they must be registered and charge 20% VAT. With a €60,000 threshold, they will be able to leave VAT and stop charging it. If they sell to foreign companies, the place-of-supply rules do not change — there, registration under Art. 97a of the VAT Act matters more.

New: registration when selling a new property

The draft introduces a separate ground for registration. Anyone selling a new building, a regulated plot of land or a building right must register for VAT regardless of turnover. The application must be filed at least 7 days before the tax becomes due. The rule also applies to individuals acting as taxable persons — for example, an investor who builds and sells apartments.

If you plan to sell a new property in 2027, build the registration into the deal timeline. Under the draft, the penalties for missing it are higher than today.

Reverse charge for foreign suppliers

Supplies of goods and services by businesses not established in Bulgaria will be taxed through the reverse charge by the recipient, even if the supplier has a Bulgarian VAT registration. If you buy from such suppliers, your bookkeeping must account for VAT in a new way from 2027.

Frequently asked questions

Sources

• Focus — National Tripartite Council on the 2027 tax changes (23 October 2026)
• EY Bulgaria — Draft amendments to the VAT Act: e-invoicing and new VAT reporting
• osigurovki.bg — Tax changes 2027 (updated 28 October 2026)
• economic.bg — Bulgaria's tax changes in 2027

This article is general information, not legal advice. Current as of 2 November 2026.