VAT in Bulgaria 2026 – a guide for foreign companies
VAT in Bulgaria is relevant for the sale of goods, services, import, warehousing, assembly projects and e-commerce.
As of January 1, 2026, Bulgaria has been in the eurozone, so invoices, declarations, payments, and limits must be processed in the new currency. Euro adoption alone doesn't change the VAT structure, but it does change settlement practices.
This guide covers the topic broadly: VAT rates, registration, declarations, reverse charge, import, OSS, IOSS, VAT refund, VIES, Intrastat, SAF-T and the most common tax risks.
The most important information before you choose your rate
In Bulgaria, the standard VAT rate is 20%, but the rate alone doesn't solve the problem. First, you need to determine whether the transaction is subject to Bulgarian VAT, who pays the tax, and whether a VAT number is required.
| Area | The rule in 2026 | What does this mean in practice? |
|---|---|---|
| Currency | Euro from January 1, 2026 | Declarations, payments, limits, invoices and accounting systems must be analyzed in euros. |
| Standard VAT rate | 20% | The basic rate for most local deliveries of goods, services, imports and ITC. |
| Reduced rate | 9% | Applies only to selected categories. Should not be applied automatically. |
| 0% rate | Selected international transactions | Requires documents confirming the right to preferences. |
| VAT registration | May be required before first transaction | Key for local deliveries, imports, warehousing and assembly. |
| VAT declarations | Monthly settlements | After registration, you need to set up a permanent reporting and payment process. |
| Reverse charge | Available in selected B2B transactions | It may limit the obligation to charge Bulgarian VAT, but does not replace analysis. |
| OSS and IOSS | Procedures for selected B2C sales | They do not replace local registration for warehousing, import or local sale. |
Taxenlight Experience
In practice, VAT abroad is analyzed transactionally: first, the sales model, the goods' location, the importer, the buyer's status, documents, and reporting, and only then the rate. In Bulgaria, this order is particularly important, as a single transaction may affect registration, declaration, VIES, Intrastat, import, OSS, or invoicing.
When does a foreign company have to check VAT in Bulgaria?
VAT liability in Bulgaria most often arises when the transaction has a local element: goods, warehouse, import, assembly, Bulgarian buyer or place of consumption in Bulgaria.
Local delivery of goods
If the goods are located in Bulgaria at the time of sale and the seller is responsible for settling the tax, a local VAT number may be needed before the first delivery.
Warehouse or fulfillment
Own warehouse, logistics operator, fulfillment or marketplace can mean the movement of goods, intra-Community acquisitions, local sales and reporting in Bulgaria.
Import to Bulgaria
The importer, customs documentation, VAT deduction rights, and resale must all be identified. Customs clearance alone doesn't conclude the tax analysis.
Delivery with assembly
Machines, technological lines, installations and components assembled at the customer's premises require a separate check of the place of taxation and reverse charge.
B2B services
In many B2B services, the buyer settles the tax, but exceptions apply to, among others, real estate, events, transport, assembly and the physical place of performance.
B2C Sales
OSS VAT returns can help with consumer sales, but not with every model involving warehousing, importing or local delivery.
VAT rates in Bulgaria in 2026
According to the Bulgarian Tax Administration, the VAT rate in Bulgaria mainly includes the standard rate of 20%, the reduced rate of 9% and the 0% rate for certain transactions.
- 20% is the starting point for most local supplies of goods and services.
- 9% applies to selected categories and requires checking a specific product or service.
- 0% may be important for selected international transactions, but requires documents.
- Reverse charge is not a VAT rate, but a method of settling tax by the buyer.
Taxenlight advises
Don't start your analysis with the question "what rate?". First, determine whether Bulgaria is the correct country of settlement, who should settle the tax, whether registration is required, and what documents confirm the transaction. Only then should you choose 20%, 9%, 0%, exemption, or reverse charge.
VAT registration in Bulgaria – when may it be needed?
VAT registration in Bulgaria may be necessary when a company performs taxable activities in Bulgaria and is responsible for settling the tax. The lack of a local registered office does not exclude the obligation to register.
The most common situations
- sale of goods located in Bulgaria,
- sale from a Bulgarian warehouse,
- import and subsequent sale,
- delivery with assembly or installation,
- local B2B deliveries without secure reverse charge,
- B2C sales outside the scope of OSS or IOSS.
What to check formally?
It's not worth postponing formalities until the first invoice arrives. Before you start selling, check:
- official VAT registration rules in Bulgaria,
- VAT registration procedure for non-residents in Bulgaria ,
- whether a non-EU entity needs an accredited tax representative.
From 2026, the thresholds appear in euros, but in the case of local deliveries, imports, warehousing or assembly, the obligation is often determined by the transaction model, not the turnover itself.
Not sure if you need a Bulgarian VAT number?
Go to the registration guide or use Taxenlightservice if you want to verify your sales model and documents right away.
VAT returns in Bulgaria after registration
Once a company obtains a VAT number, it enters the local reporting process. VAT returns in Bulgaria are monthly and are generally submitted by the 14th of the month following the accounting period.
VAT declaration and registers
Declarations are based on sales and purchase records. Data must be consistent with invoices, goods movements, import documents, adjustments, and EU transactions.
Electronic submission
Access to the NRA's electronic services or cooperation with an attorney are necessary. The biggest challenge is usually collecting the data in a timely manner.
VIES, Intrastat and import
If a company uses a Bulgarian VAT number for EU transactions, VIES may be required. For larger goods flows, Intrastat should be checked.
Already have a VAT number in Bulgaria? Get your declarations in order.
A separate guide expands on deadlines, registers, corrections, VIES, Intrastat and settlement documents.
Reverse charge in Bulgaria – when does it help and when does it not?
Reverse charge means that VAT is settled by the buyer, not the seller. It can be significant in B2B transactions with Bulgaria, but it doesn't automatically apply to every sale to a Bulgarian taxpayer.
Most often for B2B services
In many services provided to a Bulgarian VAT payer, the place of taxation is the buyer's country, so it is the buyer who settles the tax.
Be careful with goods
The sale of goods already located in Bulgaria, warehousing, import and assembly may require a different qualification than a classic B2B service.
The invoice also matters
When it comes to invoices, it is worth checking the Bulgarian rules, including VAT invoicing in Bulgaria.
Reverse charge is not a VAT rate
This analysis includes the buyer's status, VAT number, transaction type, place of taxation, and local rules. Before issuing a VAT-free invoice, check whether the reverse charge actually applies to the specific transaction.
Import to Bulgaria and import VAT
Importing involves customs duties, transport documents, import VAT, the right to deduct, and resale. A company should know who the importer is, who holds the customs document, and how the goods will be used after import.
Procedure 42 and further dispatch
If Bulgaria is only the point of entry into the EU and the goods are to be sent onwards to another Member State, you need to check the conditions of procedure 42 and the documents confirming the further movement of goods.
VAT deferral on import
The Bulgarian Customs Administration describes the deferred settlement of import VAT, which is linked to Article 167a of the VAT Act and Code 9PA. This solution requires meeting conditions, including the type of goods, prior VAT registration, no public arrears, and a minimum customs value.
VAT refund from Bulgaria
The refund path depends on whether the company is registered for VAT in Bulgaria, is an EU entity not registered locally, or operates from outside the European Union.
| Company status | The most common path | What to watch out for? |
|---|---|---|
| Registered for VAT in Bulgaria | Refund via local VAT declaration | VAT registers, invoices, import documents and the connection between purchases and taxable activities are key. |
| EU company not registered locally | VAT refund from Bulgaria for EU companies | The deadline is generally September 30. Minimum amounts: €400 for shorter periods and €50 for annual or end-of-year applications. |
| Non-EU company | VAT refund from Bulgaria for non-EU companies | You need to check the documents, the conditions of the procedure and the possible principle of reciprocity. |
VIES, Intrastat, SAF-T and data consistency
Bulgarian VAT isn't just about declarations. For EU transactions, goods flows, and larger structures, additional reporting obligations must be considered.
VIES
VIES in Bulgaria is important for intra-EU transactions, especially when a Bulgarian VAT number is used.
Intrastat
Intrastat in Bulgaria may apply to VAT-registered entities that exceed the relevant commodity thresholds.
OSS
OSS in Bulgaria helps with selected B2C sales, but not with every model with a local warehouse.
SAF-T
SAF-T in Bulgaria is worth observing due to its larger scale of operations and extensive accounting processes.
The most common VAT errors in Bulgaria
The most expensive problems usually start before the first transaction: with incorrect model qualification, a bad invoice, or the assumption that reverse charge or OSS will solve everything.
Operational risks
- no registration before local delivery,
- sales from the warehouse are settled as regular cross-border sales,
- incorrect application of reverse charge,
- no documents for the 0% rate,
- incorrect importer in customs documents.
Reporting risks
- no monthly declarations after registration,
- omission of VIES or Intrastat,
- inconsistency of data from the marketplace, warehouse and accounting,
- currency errors after Bulgaria's entry into the eurozone,
- the assumption that deferred import VAT works automatically.
Sanctions for delays
The source materials indicate a sanction for failure to submit a VAT return, sales register, purchase register or submitting them after the deadline ranging from EUR 255.65 / BGN 500 to EUR 5,112.92 / BGN 10,000 for legal entities and sole proprietors.
VAT in Bulgaria and the euro from 2026
The European Central Bank has confirmed that Bulgaria will be in the eurozone from 2026, and the official exchange rate is 1 EUR = 1.95583 BGN. For VAT, this means a change in settlement practices, not a change in the logic of the tax itself.
What needs to be checked?
- whether the invoicing system supports Bulgarian settlements in euro,
- whether declarations, registers and payments are prepared in the correct currency,
- whether limits and thresholds are not analyzed according to the old BGN values,
- whether imports, cost invoices and corrections are consistent with accounting.
The euro is not a substitute for VAT analysis
Joining the eurozone doesn't eliminate VAT registration requirements, change OSS or IOSS rules, or make reverse charge automatic. However, it can reveal data errors, especially when a company operates in multiple currencies and EU countries.
When to check VAT in Bulgaria before a transaction?
If even one point fits your model, do not base your settlement solely on the seller's country of residence or the general B2B rule.
- The goods are located in Bulgaria before sale or are sold from a Bulgarian warehouse.
- The company uses a fulfillment, logistics operator or marketplace in Bulgaria.
- The company imports goods into Bulgaria or sells them after import clearance.
- The transaction includes delivery with assembly, installation or technical design in Bulgaria.
- The company sells from Bulgaria to other EU countries or uses a Bulgarian VAT number.
- The buyer is a VAT payer, but it is not certain whether reverse charge applies in this particular transaction.
- B2C sales do not clearly fall under OSS or IOSS.
- Data for invoices, declarations and payments require updating after Bulgaria joins the eurozone.
The best starting point
Prepare a transaction map: where the goods are going from and to, where they are at the time of sale, who is the importer, what VAT number is used, who issues the invoice, who settles the tax and what documents will be needed for the declaration.
VAT in Bulgaria 2026 – key conclusions
VAT depends on the transaction model
What matters is the location of the goods, import, assembly, warehouse, buyer status and place of taxation, not just the country of the company's headquarters.
The stakes are not the first question
First, you need to establish registration, reverse charge, and documentation. Only then can you apply for 20%, 9%, 0%, or exemption.
Registration may be required before sale
For non-residents, the obligation isn't always determined by the threshold. Sometimes, the deciding factor is local delivery, import, warehousing, or assembly.
Declarations are monthly
After registration, the following process is needed: sales and purchase records, payments, VIES, possibly Intrastat and import documents.
OSS and reverse charge have limits
They only help in specific cases and do not replace local registration for warehousing, import or local deliveries.
The euro requires order in data
From 2026, invoices, declarations, payments, limits, ERP and imports must be linked to the euro.
Not sure if Bulgaria triggers VAT obligations?
Schedule a call and let's go through the transaction model: goods or services, importer, warehouse, reverse charge, OSS, VIES, Intrastat, VAT deduction and post-registration obligations.
VAT in Bulgaria 2026 – questions and answers
How much is VAT in Bulgaria in 2026?
The standard VAT rate in Bulgaria is 20%. A reduced rate of 9% is also applied for selected categories of goods and services, and a 0% rate for certain transactions, most often international ones.
Does a foreign company have to register for VAT in Bulgaria?
Not always. VAT registration in Bulgaria may be required for local deliveries of goods, sales from a warehouse, imports, deliveries with assembly, or transactions that cannot be settled through reverse charge, OSS, or other special procedures.
Does not having an office in Bulgaria mean no VAT obligations?
No. VAT is based on the place of taxation, the location of the goods, the status of the buyer, import, warehouse, and delivery method. A company can have VAT obligations in Bulgaria without a local office or employees.
Is there a VAT registration threshold for non-residents in Bulgaria?
Thresholds may be relevant for specific models, but they should not be considered the sole rule. For local deliveries, imports, sales from a warehouse, or deliveries with assembly, the registration requirement may arise depending on the type of transaction.
When is the deadline for submitting VAT returns in Bulgaria?
VAT returns in Bulgaria are monthly. Generally, they are submitted by the 14th day of the month following the accounting period.
Are VAT returns in Bulgaria filed electronically?
Yes. VAT returns and registers are filed electronically. Foreign companies should arrange access to the NRA's electronic services or collaborate with a representative.
When does reverse charge work in Bulgaria?
Reverse charge may apply to selected B2B transactions, especially services provided to a Bulgarian VAT payer. However, it does not automatically apply to every sale to a Bulgarian company.
Is OSS enough when selling to Bulgaria?
OSS may be sufficient for certain B2C sales to consumers in Bulgaria, provided the procedure's conditions are met. It does not replace local VAT registration for sales from a warehouse in Bulgaria, imports, local B2B deliveries, or transactions outside the scope of OSS.
Does selling from a warehouse in Bulgaria require VAT registration?
Often, it requires at least a registration check. If a company moves its own goods to Bulgaria and sells them from a local warehouse, it may need a Bulgarian VAT number and monthly declarations.
Does importing to Bulgaria require a VAT number?
This may be required, especially if the company acts as an importer and then sells goods in Bulgaria or from Bulgaria to other EU countries. It's necessary to identify the importer, customs documents, the right to deduct, and the subsequent sale.
Is it possible to defer import VAT in Bulgaria?
Bulgaria provides for a mechanism for deferred VAT settlement for the import of certain goods, but this is not automatic. It requires meeting certain conditions and correctly specifying the goods in the customs declaration.
Can you recover VAT from Bulgaria?
Yes. VAT refunds can be made via a Bulgarian VAT return for registered taxpayers, a refund procedure for EU companies not registered locally, or a separate procedure for non-EU companies.
Does Bulgaria use VIES and Intrastat?
Yes. VIES is relevant for intra-EU transactions, and Intrastat may apply to entities registered for VAT in Bulgaria that trade goods with other EU countries and exceed the relevant thresholds.
Will the euro change VAT in Bulgaria from 2026?
The euro does not change the VAT structure, rates, or rules for determining the place of taxation. However, it does change settlement practices: invoices, declarations, payments, limits, and accounting data must be adapted to the euro.
This article is for informational purposes only and does not constitute tax advice. Before making a decision, please review current regulations, official announcements from the Bulgarian government, and the specific transaction situation.
