The world of copywriting and content creation has undergone a massive shift over the last two years. In 2026, the focus of accounting in this sector shifts to two main pillars: the correct treatment of copyright (royalties) and the legal recognition of expenses for Artificial Intelligence (AI) tools.
The Magic of 40 Percent: Copyright Royalties
Copywriters in Bulgaria enjoy one of the best tax advantages – the right to 40% statutory recognized expenses, provided their activity is structured as the assignment of copyright (usage rights).
- How it works: If you receive 1,000 EUR for a series of articles, your taxable income is only 600 EUR. The 10% tax is paid on this reduced amount.
- The Risk: It is crucial that your contracts are precisely written. If the contract states “consulting services,” the NRA will only recognize 25% expenses. See more on this topic in Social Security and Taxes for Artists.
Accounting for AI Subscriptions: ChatGPT, Claude, Jasper
In 2026, a professional copywriter cannot function without AI. However, subscriptions for these tools are often in Dollars or Euro and come from foreign entities, creating specific VAT obligations.
- If you are an EOOD: These costs are 100% deductible for the business. Ensure your VAT ID is included in the invoice.
- If you are Freelance: Expenses for AI are not listed separately, as they are considered covered by the 40% the state automatically grants you.
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Invoicing Global Platforms (Upwork, Fiverr)
Many copywriters operate through international platforms. As of January 1, 2026, it is important to know:
- VAT Registration: If the platform is in the EU, you must have a registration (at least under Art. 97a or the new SME Scheme).
- Platform Fees: When Upwork deducts a commission, you must account for the gross amount of the sale, not just the net payment that hits your bank account. More information on this can be found in our article Google AdSense Revenue.
Social Security and Thresholds in 2026
As a self-insured person, you must pay your social security contributions monthly in Euro. The minimum insurance income for 2026 has been recalculated based on the country’s new economic indicators. Monitor the deadlines (the 25th of the month) to avoid interest penalties.
Accounting Parameters at a Glance (2026)
Key Caveat: The Small Enterprise Scheme in the EU (number with “-EX”) requires prior registration with the NRA, which takes up to 7 working days. Do not wait for the first payment to submit your documents.
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