Bulgaria’s VAT reform, effective 1 January 2026, introduces a small‑enterprise regime allowing companies with turnover up to €51,130 domestically and €100,000 EU‑wide to operate VAT‑free across the EU, removes the reverse‑charge for goods assembled or installed in Bulgaria, and expands registration thresholds to include subsidies, packaging, transport and other charges, all expressed in euros following euro adoption.
From 1 Jan 2026, companies with turnover up to €51,130 in Bulgaria and up to €100,000 across the EU can operate VAT‑free across all EU member states.
From 1 Jan 2026, such suppliers must register for Bulgarian VAT; the reverse‑charge mechanism no longer applies.
From 1 Jan 2026, thresholds will include subsidies, packaging, transport and other charges, and all thresholds will be expressed in euros following Bulgaria’s adoption of the euro.
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VatCalc · 7 days ago
Bulgaria has amended its VAT Act to require foreign EU suppliers to register for Bulgarian VAT and charge local VAT on supply and install contracts, effective 1 January 2026. The change replaces the previous reverse‑charge mechanism, aligning with the EU place‑of‑supply rule. Bulgarian customers will receive VAT‑charged invoices, and suppliers must update contracts and invoicing systems accordingly.
KPMG · 9 days ago
Bulgaria has amended its VAT Act to introduce new regimes for goods supplied with installation by EU suppliers and for small enterprises, effective 1 January 2026. The changes remove the reverse‑charge obligation for goods assembled or installed by EU‑based foreign suppliers and establish two special schemes for small businesses to align with the EU VAT Directive.
LinkedIn Article by Paweł Mikuła · 10 days ago
The CJEU ruled that a lawyer providing free legal assistance who receives a fee from the opposing party upon a successful outcome is considered a VAT taxable person. The court held that the lawyer's fee constitutes a supply of services for consideration, subject to VAT under the EU VAT Directive. This decision clarifies that such fees are taxable even when paid by a third party.
VATCalc · 15 days ago
Bulgaria will adopt the euro on 1 January 2026, triggering new VAT thresholds expressed in euros. The National Revenue Agency will enforce price monitoring and dual‑pricing rules to prevent profiteering during the currency transition.
SteelRadar · about 4 hours ago
Turkey’s Parliament extended the period for VAT‑free domestic purchases under the Inward Processing Regime by five years, from 31 December 2025 to 31 December 2030. The change removes the need for exporters to pay VAT upfront on materials procured domestically under Inward Processing Certificates, safeguarding cash flow and export competitiveness. The regulation will take effect after publication in the Official newspaper.
Bloomberg Tax · about 4 hours ago
On January 14, the Lithuanian State Tax Inspectorate released a summary explanation outlining VAT filing requirements for the small business regime. The guidance specifies that returns must be filed electronically via the online portal and due by the 25th of the month following the tax period in which VAT obligations arose or services were supplied in another EU member state. It also confirms that small business regime taxpayers in other EU member states must comply with the same electronic filing requirement.
