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.
Starting 1 January 2026, foreign suppliers must register for Bulgarian VAT and charge Bulgarian VAT on supply and install contracts, replacing the previous reverse‑charge mechanism.
They must register before carrying out their first taxable transaction in Bulgaria, effective from 1 January 2026.
It follows the place‑of‑supply rule that taxes the supply where installation occurs, allowing Bulgaria to shift VAT liability from the customer to the foreign supplier.
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