VAT in Bulgaria 2026 – a guide for foreign companies
VAT in Bulgaria is relevant for the sale of goods and services, import, warehousing, assembly and e-commerce.
The guide covers VAT rates, reverse charge, import, OSS and IOSS, SME, SAF-T, VAT refunds, and euro settlements. Taxenlight supports companies with VAT registration abroad and VAT return processing.
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% for specific categories | It may apply to specific accommodations, selected books, and designated baby products, among other things. It should not be automatically applied to other goods or services. |
| SME exemption | Available to eligible companies established in the EU | It requires prior registration in the country of establishment, obtaining a number ending with EX and compliance with the limit of EUR 51,130 in Bulgaria and EUR 100,000 throughout the EU. |
| 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
The standard VAT rate in Bulgaria is 20%. A reduced rate of 9% applies only to categories specified in the regulations, including certain accommodation services, selected books, and designated products intended for babies and young children. A 0% rate may apply to, among other things, exports and certain intra-Community transactions, provided the required conditions are met and the appropriate documentation is provided.
The 9% rate is not a general rate for all food, catering, or tourist services. The exact classification of each delivery should be checked on a case-by-case basis.
- 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.
When might a foreign company need a Bulgarian VAT number?
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 deliveries without the possibility of reverse charge,
- B2C sales outside the scope of OSS or IOSS.
From 2026, a company established in another EU country can, in certain cases, benefit from the cross-border SME exemption. This requires prior notification to the administration of the country of establishment, obtaining a number ending in EX, and not exceeding €51,130 in turnover in Bulgaria or €100,000 in turnover across the EU. Companies established outside the EU cannot benefit from this regime.
What to check formally?
The registration procedure, SME rules, EX number, deadlines, required documents and tax representative are described in detail in the VAT Registration in Bulgaria.
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.
Basic obligations after obtaining a Bulgarian VAT number
Once a Bulgarian VAT number is obtained, the company begins a monthly reporting process, which includes filing VAT returns and sales and purchase records. Detailed calendar deadlines, extensions of deadlines, zero-value declarations, corrections, and additional reporting requirements are described in our VAT Declarations in Bulgaria.
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 and Intrastat
A VIES report may be required for certain intra-EU transactions. Intrastat is a separate statistical obligation and may apply to goods flows that exceed certain thresholds.
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, OSS and SAF-T in Bulgaria
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 has been operational in Bulgaria in stages since January 1, 2026. The first phase covers a specific group of large enterprises meeting the statutory criteria. This should not be interpreted as implying that every foreign company with a Bulgarian VAT number or every entity using an advanced ERP system is automatically subject to this obligation.
The scope of the obligation should be determined on the basis of statutory criteria and the implementation timetable, and not solely on the basis of the size of the accounting system.
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 Commission confirms that Bulgaria adopted the euro on 1 January 2026, and the official conversion 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.
What is VAT called in Bulgaria?
The Bulgarian value-added tax is "данък върху добавената стойност", abbreviated as ДДС (DDS). It is the equivalent of the Polish VAT.
When is the 9% rate applied in Bulgaria?
The 9% rate applies only to categories specified in Bulgarian regulations, including certain accommodation services, selected books, and designated products for babies and toddlers. It is not a general rate for all food, catering, or all tourism services.
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.
Does OSS replace local VAT settlement?
OSS can replace local settlement for certain B2C sales to consumers in Bulgaria if the procedure's conditions are met. It does not replace local settlement for sales from a warehouse in Bulgaria, imports, local B2B deliveries, or transactions outside the scope of OSS.
Can an EU company benefit from the SME exemption in Bulgaria?
A company established in another EU country can, in certain cases, benefit from the cross-border SME exemption in Bulgaria. This requires prior notification, a number ending in EX, and compliance with the limits of €51,130 in Bulgaria and €100,000 across the EU. The exemption is not automatic.
Does SAF-T apply to every foreign company with a VAT number?
No. SAF-T is being implemented in Bulgaria in stages. Starting January 1, 2026, the first phase covered a specific group of large enterprises meeting statutory criteria. A Bulgarian VAT number or the use of an advanced ERP system alone does not constitute an obligation.
Has the euro from 2026 changed VAT rules in Bulgaria?
The euro hasn't changed the place of taxation, VAT rates, OSS and IOSS rules, or reverse charge. However, it has changed settlement practices: invoices, declarations, payments, limits, and accounting data must be adjusted 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.
