The year 2026 marks the beginning of a new era for small businesses in Bulgaria. With the adoption of the Euro and the introduction of Directive (EU) 2020/285, the VAT registration rules we have known for decades are now history.
The National Revenue Agency (NRA) is now applying the so-called “Special Scheme for Small Enterprises.” The goal is clear: less bureaucracy and more opportunities for cross-border trade. However, with the new reliefs come new responsibilities for daily turnover monitoring.
The Fundamental Change: From 12 Months to Calendar Year
Until the end of 2025, every business monitored its taxable turnover for the preceding 12 consecutive months. This created uncertainty, as a “floating” window had to be calculated every month.
From January 1, 2026, this changes fundamentally:
- Calendar Monitoring: Turnover is now calculated from January 1 to December 31 of the current year.
- The New Threshold: Mandatory VAT registration occurs upon reaching a taxable turnover of €51,130 (the equivalent of 100,000 BGN, fixed according to European requirements).
- Daily Monitoring: You are required to monitor your turnover daily. The moment a sale is made that exceeds the limit, a 7-day registration period begins.
Important: If, as of January 1, 2026, you established that your turnover for the entire year 2025 exceeded €51,130, you were required to submit a registration application by January 7, 2026. If you have not done so, consult a specialist immediately.
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Small Business Scheme in the Country
If your business operates primarily in Bulgaria, the new scheme allows you to remain outside the VAT system (not charging 20% tax and not filing monthly returns) until you reach the threshold of €51,130.
This is extremely useful for professions with low direct costs, such as those in our list of VAT registration for artists and creative professionals. For them, charging VAT often makes their services more expensive for end clients who are private individuals.
Small Business Scheme in the EU: A Breakthrough for Cross-Border Trade
This is the most revolutionary part of the changes. Before 2026, if a Bulgarian company wanted to use a VAT exemption in another Member State (e.g., Greece or Romania), it often had to register there.
Now, you can apply VAT exemption throughout the EU if you meet two limits simultaneously:
- National Threshold: Your turnover in Bulgaria is under €51,130.
- Pan-European Threshold: Your total sales turnover across the entire European Union does not exceed €100,000 for the current and previous year.
How is it applied technically?
To benefit from this abroad, you must submit a preliminary application to the NRA. Upon approval, you will receive an identification number with the suffix “–EX” (e.g., BG123456789–EX). This number is your “passport” for working in the EU without VAT.
This scheme is ideal for those just starting to grow on platforms outside the country, such as in cases of Reporting income from platforms like YouTube and TikTok.
Who is Excluded from These Reliefs?
Not every business can benefit from the €51,130 threshold.
- Non-EU Persons: If your company’s headquarters are outside the EU (e.g., USA, UK, or Turkey), you are not entitled to this threshold. You must register for VAT before your first taxable supply in Bulgaria.
- Specific Services: Some supplies (e.g., import of certain goods) require registration under other articles of the law.
For those working in the service sector, it is important to distinguish this scheme from registration under Art. 97a, about which you can learn more in our article on Income from Google AdSense: A Complete Guide.
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Why Acting Without an Accountant is Risky in 2026
The introduction of the calendar year and daily monitoring places businesses in a situation of constant reporting. A single error in calculating turnover in Euro or missing the 7-day deadline can lead to:
- Charging VAT on sales already made (which directly hits your profit).
- Administrative fines.
- Loss of the right to the small business scheme in the EU.
Specialists working from home should be especially careful, as their turnover often grows gradually, and it is easy to miss the moment of crossing the €51,130 border. Read more about their accountability in What expenses can be recognized when working from home?.
Conclusion
The new VAT rules in 2026 are a huge step towards business modernization. They give small firms a chance to be competitive throughout Europe. However, the key to success lies in precise daily accounting. Do not wait for the end of the year to check where you stand regarding the thresholds.
Warning: This article is informative and does not replace consultation with a licensed accountant. Legislation may undergo changes during the year.
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