Bulgaristan.bg

VAT registration in Bulgaria: when it is required

Incorporating a company and registering for VAT are not the same step: entry in the trade register is one act, VAT registration another, and the two may happen at different times. In some situations registration is compulsory by law; in others it is the business's own choice.

Companies and taxes · Last reviewed: 2026-08-16

Compulsory registration is not only about turnover

Turnover is the best known trigger: once taxable supplies over a defined period exceed the statutory threshold, registration becomes compulsory. But there are grounds that operate regardless of the threshold, and newcomers usually meet those first: receiving services from a supplier in another member state, acquiring goods from within the EU, or falling into the distance selling regime can each create a registration duty on its own.

The threshold is not quoted here as a figure

The VAT registration threshold changes with legislation and was restated at the euro changeover. Verify the current figure and the measurement period on the NRA's official pages, and do the calculation with your accountant.

Why businesses register voluntarily

  • If your customers are mostly VAT-registered businesses, the VAT you charge is not a cost to them, while you recover input VAT on your own expenses.
  • If you are in an investment phase with large purchases — equipment, software, leases — recovering input VAT changes cash flow noticeably.
  • If you supply B2B services inside the EU, a valid VAT number is a practical necessity so the counterparty can report the transaction correctly.
  • Conversely, if you sell to consumers, VAT raises your price directly; early registration can then be a competitive disadvantage.

Intra-EU transactions and VIES

Once registered, the company uses a VAT number prefixed BG and built on the EIK from the trade register. In EU transactions the counterparty's number is checked through the European Commission's VIES validation service. That check is not a formality: for cross-border B2B services the reverse charge often depends on a valid number being in place. If the number does not validate, the supply may be taxed as a domestic one and the difference stays with you.

What changes after registration

  1. Regular filing begins

    A VAT return together with purchase and sales ledgers is filed with the NRA at regular intervals; the duty continues even in periods with no transactions.

  2. EU transactions are reported separately

    Supplies and services to other member states are covered by a separate recapitulative (VIES) statement.

  3. Invoicing rules tighten

    Invoice content, numbering and retention periods are set by law, and reverse-charge invoices must cite the relevant legal ground.

  4. Deregistration is a procedure too

    When the grounds fall away you can apply to be deregistered, but it does not happen automatically and follows its own process.

The accounting load is a real cost

VAT registration means not only tax but also filing and documentation discipline. Weigh that operational cost when deciding on voluntary registration.

This is not legal or financial advice

This page explains the process in general terms and points to the official sources of the competent authorities. For decisions specific to your own situation, consult a lawyer, an accountant or the relevant institution. Rules and amounts change over time.

Frequently asked questions

Am I VAT-registered as soon as I incorporate?

No. Entry in the trade register and VAT registration are separate procedures. Until a compulsory ground arises you may trade unregistered or register voluntarily.

I only serve clients abroad — do I still need to register?

You may. Receiving services from an EU business, or supplying services into the EU, can create a duty regardless of turnover. Clarify your case with NRA sources and your accountant.

How do I check whether a VAT number is valid?

The European Commission's VIES page lets you verify your own number and those of your EU partners free of charge.

Sources

The information on this page is based on the official sources listed below. Legislation changes — open the links and verify the current position.

  1. Национална агенция за приходите (НАП) — ДДС — https://nra.bg/ · 2026-08-16
  2. Закон за данък върху добавената стойност (lex.bg) — https://lex.bg/ · 2026-08-16
  3. VIES — VAT number validation (European Commission) — https://ec.europa.eu/taxation_customs/vies/ · 2026-08-16
  4. European Commission — Taxation and Customs Union: VAT — https://taxation-customs.ec.europa.eu/ · 2026-08-16

Related topics

VAT registration in Bulgaria: when it is required | Bulgaristan.bg