April 2021 / Bulgaria

The government has proposed a bill introducing amendments to the Value Added Tax (VAT) Act. If the proposal is approved, the threshold for mandatory VAT registration will be increased to BGN 166,000 (approximately EUR 85,000) as from 1 January 2022. The current threshold has been set at BGN 50,000 (approximately EUR 26,000).

The full text of the proposal, issued on 28 April 2021, is available here (in Bulgarian only).

As a next step, the parliament will vote on the proposal. Further developments will be reported when they occur.

On 2 April 2021, Bulgaria officially introduced amendments to the regulations for application of the Value Added Tax (VAT) Act. The main amendments concern the following topics:

• introduction of details of the application of new EU VAT rules for e-commerce coming into force in 2021; and
• implementation of Council Directive (EU) 2020/1756 of 20 November 2020 amending Directive 2006/112/EC on the common system of value added tax as regards the identification of taxable persons in Northern Ireland.

On 2 April 2021, Bulgaria published changes to the regulations for the application of excise duties and the Tax Warehouses Act in the State Gazette. The main amendments concern the following topics:

• clarifications on the issuing of electronic registered excise tax documents; and
• documentation requirements for licensed warehouse keepers storing goods released for consumption in other EU Member States.

The full text of the amendments is available here (in the Bulgarian language only).