Welcome to 2026 – the year of the big change for Bulgarian business. As of January 1st, Bulgaria is officially part of the Eurozone, and for all merchants and accountants, the most challenging stage has begun: the dual circulation period.
Until January 31, 2026, inclusive, both the Bulgarian Lev (BGN) and the Euro (EUR) exist simultaneously as legal tender. This means your customers can choose which currency to pay in, but as a business, you have specific obligations that require extreme precision in cash reporting.
The Golden Rule: Payments in Both Currencies, Change Only in Euro
The most important principle this month is that while a customer can hand you a 20 BGN banknote, you are obliged to give them their change in Euro. The goal is to gradually withdraw Levs from circulation through the retail network.
Exception: Merchants are not obliged to give change in Euro only if they do not have sufficient liquidity at the moment, but this should be an exception rather than a regular practice.
The Rate is Fixed: Do not forget that the exchange happens at the official fixed rate of 1.95583. Any rounding outside the legal rules (up to the second decimal place) is a violation.
Managing the Cash Register (Fiscal Device)
By January 2026, your cash register software should already be reconfigured.
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The Fiscal Receipt: It must show the total amount in Euro. During the transition period, however, fiscal devices must also display the amount in BGN as a reference so the customer knows how much they owe in the old currency.
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Marking the Payment: When a customer pays in BGN, you select the corresponding payment type in the software (e.g., “Cash BGN”), but the system automatically calculates the change in EUR.
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Daily Reports: All reports are now generated in Euro. The accounting of turnovers also happens in the new currency.
Organizing Cash on Hand
To avoid chaos at the end of the working day, it is highly recommended to physically divide your cash drawer:
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Euro Compartment: Keep your EUR liquidity for change and Euro receipts here.
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Lev Compartment: Collect Levs from customers here, which should then be deposited at the bank or handed over to security/collection services to be exchanged.
Pro Tip: Keep a detailed “mixed” cash book during January. Although the official report is in Euro, recording the received Levs will help you during the end-of-day inventory and make it easier for your accountant to record exchange operations.
Rounding and Psychological Pricing
When converting prices from BGN to EUR, totals often result in many digits after the decimal point. The law requires rounding to the nearest Euro cent:
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If the third digit is below 5 – round down (e.g., 1.224 becomes 1.22).
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If the third digit is 5 or above – round up (e.g., 1.225 becomes 1.23).
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Important: Merchants are not allowed to increase prices under the pretext of conversion. The Consumer Protection Commission is strictly monitoring for “unfair practices.”
Accounting Challenges in January
For your accountant, January is the month of “dual bookkeeping.”
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Opening Balances: All balances as of December 31, 2025, must be recalculated into Euro as of January 1, 2026.
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Rounding Differences: It is almost certain that rounding differences of a few cents will appear when converting payroll, supplier liabilities, and inventory. These differences are recorded as current income or expenses.
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VAT Return: In February, you will file your first VAT return for January entirely in Euro.
Безплатна 30-минутна консултация за нови клиенти
Безплатна 30-минутна консултация за нови клиенти
Why Do You Need Professional Help Right Now?
The transition period is critical. A single error in the cash register software or incorrect rounding can lead to administrative sanctions or discrepancies in cash on hand. A professional accountant will:
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Guide you on how to correctly reflect conversion differences.
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Monitor whether your sales software (SUPTO) meets Eurozone requirements.
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Assist with the inventory of cash and stock at the end of January when the Lev officially leaves circulation.
Final Thoughts
January 2026 is a historical moment for the Bulgarian economy. While the transition may seem complex, with good organization and software preparation, it can go smoothly. Be patient with customers who are still using Levs, and ensure your documentation is flawless from day one.
Disclaimer: This article is for informational purposes and does not constitute legal or tax advice. For specific cases related to the transition to the Euro, consult your accountant.
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