VAT in Bulgaria: 20% Standard Rate Guide for 2026

Bulgarian VAT is one of the more straightforward EU VAT regimes, but the monthly return cadence (rather than quarterly default elsewhere) and strict deadlines catch new entrants. Combined with EU intra-Community rules and reverse charge for digital services, there's a lot to track.

This guide covers what every Bulgarian founder needs to know about VAT in 2026.

Registration thresholds

The threshold is rolling — you must register if turnover crossed BGN 100,000 in any 12-month window, including expected supplies in the next 14 days. Register within 14 days of the threshold crossing.

Voluntary registration below the threshold is permitted and beneficial for B2B businesses that want to reclaim input VAT.

What gets charged

Note: Bulgaria has experimented with reduced rates over time. The 9% rate on restaurant services was introduced as a COVID measure and made permanent. Always check current law before relying.

Filing — monthly cadence

Unlike most EU countries with quarterly default, Bulgaria operates monthly VAT returns:

• Period: each calendar month
• Filing: by 14th of the following month
• Payment: same date as filing

Plus annual reporting:

• VAT-registered persons report to NRA (via portal)
• Intrastat if intra-EU goods movements exceed thresholds (BGN 700,000 arrivals / BGN 1,000,000 dispatches in 2024)

Filing is via the NRA portal using qualified electronic signature.

What goes on the return

Bulgarian VAT returns include:

• Standard-rated supplies and output VAT
• Reduced-rated supplies (separately reported)
• Zero-rated and exempt supplies
• Intra-EU acquisitions (with reverse charge)
• Imports of services from non-EU (reverse charge)
• Recoverable input VAT
• Net VAT payable (or refundable)

You also submit purchase and sales journals (VAT ledgers) electronically — line-by-line detail of every invoice issued and received.

Reverse charge — for imports of services

If a Bulgarian VAT-registered business buys services from a non-Bulgarian supplier (US SaaS, UK consultant, EU agency), the supplier doesn't charge Bulgarian VAT. Under the reverse charge, the Bulgarian buyer accounts for both:

• Output VAT (the 20% the supplier would have charged)
• Input VAT (the 20% recovered) — net zero for B2B businesses making taxable supplies

Reverse charge applies to:

• B2B services from outside Bulgaria (almost all SaaS, hosting, consulting)
• Intra-EU acquisitions of goods (under VIES)
• Reverse-charge construction services (specific national rule)

Failure to apply reverse charge correctly is the #1 finding in NRA VAT audits of small businesses.

Intra-EU supplies and VIES

Bulgarian B2B sales to other EU VAT-registered businesses are zero-rated only if the customer's VAT number is valid on VIES at the time of sale. Get this wrong and:

• The supply becomes Bulgarian-domestic for VAT (20% retroactively due)
• NRA can disallow zero-rating in audit
• VAT on the gross amount can exceed the entire profit on the sale

Always validate customer VAT numbers via VIES before zero-rating.

OSS (One Stop Shop)

If you sell to EU consumers (B2C) above the EU-wide €10,000 threshold, you can either:

1. Register for VAT in every EU country you sell into (madness)
2. Register for Union OSS in Bulgaria and remit all EU VAT through a single quarterly return

Most cross-border e-commerce uses OSS. Returns are quarterly via the NRA OSS portal — different cadence from regular Bulgarian VAT.

Intrastat

If your intra-EU goods movements exceed thresholds, you must file monthly Intrastat declarations:

Filed by the 14th of the following month via NRA Intrastat portal. Pure informational return — no payment.

Penalties

Bulgarian VAT penalties are tiered:

• Late registration: BGN 500 – BGN 5,000
• Late filing: BGN 500 – BGN 5,000
• Late payment: interest at the central bank reference rate + 10% per annum (currently approximately 13–14%)
• Inaccurate return: 25%–100% of the underpayment in serious cases
• Failure to apply reverse charge: 100% of the unpaid VAT in serious cases

The compounding daily interest is brutal for cash-flow-tight businesses. Don't miss returns.

Common mistakes

• Quarterly mindset — Bulgaria is monthly, not quarterly
• Missing the 14th deadline by treating it as month-end
• Forgetting reverse charge on US/UK SaaS subscriptions
• Zero-rating EU sales without VIES validation — retroactive VAT exposure
• Confusing the 9% reduced rate scope (restaurants and tourism, not all hospitality)
• Not tracking Intrastat thresholds until exceeded

How AccountsOS handles Bulgarian VAT

AccountsOS is live in Bulgaria (with Bulgarian-language source citations from nra.bg). Finn:

• Tracks rolling 12-month turnover for the BGN 100,000 threshold
• Categorises every transaction by VAT rate (20% / 9% / 0% / exempt)
• Detects reverse-charge purchases from non-Bulgarian suppliers
• Validates customer VAT numbers against VIES at invoice time
• Tracks Intrastat thresholds for goods movements
• Generates monthly VAT returns with sales/purchase ledgers ready for NRA

Try AccountsOS free or read about AccountsOS in Bulgaria.

Related reading

• Corporate Tax in Bulgaria: 10% flat rate
• Setting up an OOD in Bulgaria: the founder's guide