Bulgaria VAT Rates 2026

Bulgaria VAT Rates at a Glance

What is VAT Called in Bulgaria?

In Bulgaria, value added tax is officially known as Данък върху добавената стойност (ДДС / DDS). It is administered by the National Revenue Agency (Национална агенция за приходите – НАП).

Like all EU member states, Bulgaria operates VAT under the EU VAT Directive (2006/112/EC), which sets the framework for standard and reduced rates, exemptions, and the reverse charge mechanism across all 27 EU countries. The National Revenue Agency is responsible for VAT registration, returns, enforcement, and issuing VAT rulings.

Reduced VAT Rate in Bulgaria (9%)

Bulgaria applies a reduced VAT rate of 9% to the following categories of goods and services (subject to the specific conditions of Bulgaria VAT law):

• ✓Hotel accommodation
• ✓Books (physical and digital)
• ✓Baby food and hygiene products
• ✓Restaurant and catering services
• ✓Sports events entry

Note: Reduced rate eligibility depends on the specific nature of the supply and how goods or services are classified under Bulgaria VAT law. Always verify classification with a local VAT adviser before applying a reduced rate.

VAT Registration in Bulgaria

Once registered, businesses are issued a Bulgaria VAT number (BG + digits). This number must appear on all invoices and be verified on the EU VIES database before zero-rating intra-EU B2B supplies.

Non-EU businesses are generally required to register for Bulgaria VAT with no registration threshold — the first taxable supply in Bulgaria triggers an immediate registration obligation. Non-established businesses may need to appoint a local fiscal representative depending on the nature and location of their business.

Filing VAT Returns in Bulgaria

VAT returns in Bulgaria must be submitted electronically via the National Revenue Agency portal. Most member states require payment of VAT due simultaneously with the return submission — check whether Bulgaria requires separate payment instructions or if bank debit is automatic.

VAT Invoice Requirements in Bulgaria

To be valid for VAT recovery purposes, Bulgaria VAT invoices must include the following mandatory information (consistent with Article 226 of the EU VAT Directive, plus any additional national requirements):

1. 1Consecutive invoice number
2. 2Date of issue
3. 3Supplier name, address and Bulgarian VAT number (BG + 9 or 10 digits)
4. 4Customer details (name, address, VAT number for B2B)
5. 5Description of goods/services
6. 6Unit price and quantities
7. 7VAT rate and amount
8. 8Total payable in BGN

Simplified invoices (without all fields above) may be issued where the total amount does not exceed €100 excluding VAT, subject to Bulgaria's national rules on simplified invoicing.

Reverse Charge Mechanism in Bulgaria

Bulgaria applies domestic reverse charge to supplies of grain and industrial crops, mobile phones, computers, construction services, and scrap metal between VAT-registered businesses.

Under the reverse charge, the recipient of the supply (rather than the supplier) is responsible for declaring and paying VAT. The recipient self-accounts for VAT on their Bulgaria VAT return — declaring both output VAT (as if they had charged it) and input VAT (which they may recover subject to normal rules). The supplier issues an invoice without VAT with a note such as "Reverse charge — Article 196 EU VAT Directive."

EU OSS and Bulgaria

Bulgarian businesses registered for EU OSS can file a single quarterly return covering all EU consumer sales, filing through the NRA's electronic portal.

Under the EU's One Stop Shop (OSS) scheme introduced in July 2021, businesses selling digital services or goods B2C to customers in Bulgaria (and other EU countries) can register in a single EU member state and file a single quarterly return covering all EU consumer sales. OSS avoids the need to register for VAT separately in each of the 27 EU member states where you have customers. The Bulgaria VAT due on your OSS return is paid in your registration country and forwarded to Bulgaria's National Revenue Agency.

Bulgaria VAT: Background & History

Bulgaria introduced VAT in 1994 as part of its post-communist economic transition, replacing the Soviet-era turnover tax system. Bulgaria joined the EU in 2007 and has maintained a flat 20% standard VAT rate since 1999 — one of the most consistent rate histories in the EU. Bulgaria uses the Bulgarian Lev (BGN), pegged to the Euro at BGN 1.95583 per €1, and is expected to adopt the Euro in the coming years.

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Frequently Asked Questions — Bulgaria VAT

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