Draft VAT reforms would raise the registration threshold, tighten VAT rules on property sales and implement EU ViDA changes from 2027
Bulgaria’s Ministry of Finance has proposed a wide-ranging package of VAT reforms from 1 January 2027, including a higher VAT registration threshold, e-invoicing & e-reporting and VAT in the Digital Age first reforms.
The draft amendments to the VAT Act were published for consultation on 23 September 2026. Most measures would apply from January 2027, with Bulgaria’s new domestic e-invoicing regime following in January 2028.
VAT registration threshold rises to €75,000
The mandatory VAT registration threshold would increase from €51,130 to €75,000.
The Ministry says the higher threshold is intended to reduce the administrative and financial burden on micro, small and start-up businesses. Voluntary VAT registration would remain available.
The change uses the flexibility available to EU Member States under the VAT SME scheme introduced by Directive (EU) 2020/285.
ViDA changes enter Bulgarian VAT law
The draft also starts implementing the EU VAT in the Digital Age (ViDA) reforms.
Changes include the eventual abolition of the call-off stock simplification, extensions to the deemed-supplier rules for electronic interfaces and amendments concerning supplies of gas, electricity, heating and cooling.
Existing call-off stock arrangements would begin to be phased out from 30 June 2028, ahead of their abolition from 30 June 2029.
These changes form part of the wider EU transition towards the ViDA VAT framework, including mandatory digital reporting for intra-EU B2B transactions from July 2030.
New VAT registration rule for property sales
A separate mandatory registration requirement is proposed for taxable persons making certain taxable supplies of new buildings, associated land and regulated building plots.
Businesses caught by the measure would generally have to apply for VAT registration at least seven days before VAT becomes chargeable.
The reform is aimed at arrangements where property developers complete significant taxable sales before their normal turnover-based VAT registration takes effect. The Ministry estimates that the measure could raise an additional €120 million in VAT revenue.
Domestic e-invoicing from 2028
The package also confirms Bulgaria’s proposed mandatory domestic structured e-invoicing regime from 1 January 2028, using the National Revenue Agency platform and EN 16931 invoices.
This includes pre-filled VAT returns and the eventual abolition of existing sales and purchase ledgers.
VATCalc covers the proposed architecture, scope and implementation timetable separately in our Bulgaria e-invoicing guide.
Other Bulgarian VAT changes
The package also proposes:
- abolition of the special deferred import VAT regime for qualifying investment projects;
- changes allowing some businesses registered because of EU-wide turnover to deregister where they make no Bulgarian domestic supplies;
- clarification of triangular transaction invoicing following the CJEU’s decision in C-247/21;
- extension of the VAT margin scheme for certain works of art; and
- revised and generally higher VAT penalties.
Bulgaria would also introduce VAT relief for qualifying defence products financed through the EU SAFE instrument, applying retrospectively from 29 May 2025.
The draft remains subject to consultation until 23 October 2026 before proceeding to the Council of Ministers and National Assembly.
See more in our Bulgarian VAT guide.
