At First Reading: Threshold for Mandatory VAT Registration in Bulgaria to be BGN 100,000 Turnover

Business » FINANCE | July 8, 2022, Friday // 12:40
Bulgaria: At First Reading: Threshold for Mandatory VAT Registration in Bulgaria to be BGN 100,000 Turnover @Flickr

The Parliament changed the threshold for mandatory VAT registration from 50,000 to 100,000 BGN (51,000 EUR) turnover. The amendment was accepted at first reading. The changes introduced by “We Continue the Change”, BSP, “There Is Such a People” and “Democratic Bulgaria” will affect a large number of small and medium-sized enterprises, which, according to the politicians, will become more competitive and reduce their administrative costs.

One of the most important things we can do for small businesses” - this is how MP Martin Dimitrov describes the change.

A mandatory derogation from Brussels is required to raise the VAT registration threshold.

Right now companies with a turnover of over BGN 50,000 must register under the VAT Act.

"We see no reasonable reason why this should be denied to us. As for increasing the threshold to BGN 166,000, which is the ceiling for the entire EU, this will happen as a debate next year. For now, we will withdraw this proposal of ours. For the important reforms, we can work together and achieve them together".

Iskren Mitov from WCC said that this is a victory for small businesses.

"The law that we are considering today is one of those laws that brought together coalition partners, governing and opposition, and today we are all here in the chamber to pass it. Against the background of all the political crises, today is a long-awaited victory for small and medium businesses in Bulgaria. For 20 years now, the threshold for mandatory VAT registration has not been changed".

The bill was unanimously supported by GERB and “Vazrazhdane” - Alexander Ivanov from GERB said:

"I hope that by 2024 we will find efforts, that in Bulgaria the VAT registration to not be in BGN, let's talk then in the single European currency, that such calculations will take place.”

Stoyan Taslakov from "Vazrazhdane" added:

"Given the inflation all these years, we think that BGN 100,000 is a good threshold. It will make it easier for the small companies that carry the Bulgarian economy on their backs."

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