It is a well-known fact to all business owners, company managers, accountants and lawyers in this sector that the threshold for VAT registration in Bulgaria has until now been BGN 50,000. Once exceeded, registration is mandatory - an activity that many small and medium-sized businesses are not keen on, but one that opens many doors.
We at Experta Accounting Agency wish to inform you of an important development: from 1 January 2023, the minimum threshold for VAT registration becomes BGN 100,000.
The NRA announces that the change comes into force with Council Implementing Decision (EU) No 2022/2254 of 14 November 2022, published in the Official Journal of the EU on 17 November 2022.
Another important point: the new threshold will apply until 31 December 2024, after which new rules for the special scheme for small enterprises will come into force.
What if you have already taken steps to register for VAT?
There are no irreversible actions. Persons who over the last 12 months have a taxable turnover below BGN 100,000 as of January 2023 and who wish to cancel their VAT registration may submit a deregistration application to the competent territorial directorate of the NRA.
Registered persons with turnover below BGN 100,000 who do not wish to cancel their registration do not need to submit any applications.
Should you have any questions about accounting for your business or if you are considering starting one, do not hesitate to contact us for professional advice. The team at Experta Accounting Agency works with heart and dedication in support of its clients - both future and existing!