From 1 January 2026, Bulgaria has taken an important step forward by introducing a long‑awaited special VAT regime for small enterprises, fully harmonized with EU Directive (EU) 2020/285 and the accompanying administrative cooperation rules under Regulation (EU) No 904/2010.
This alignment finally opens the door for small businesses—both Bulgarian and EU‑based—to operate under a simplified, modernized, and business‑friendly VAT framework.
This new regime creates significant advantages: streamlined compliance, reduced administrative burden, and clearer opportunities for small enterprises to expand their cross‑border activities within the EU.
At Ilieva, Voutcheva & Co. Law Firm, we stand ready to ensure that your business leverages these benefits from day one. Our tax advisory team provides end‑to‑end support—assessing eligibility, guiding the registration process under the Bulgarian VAT Act, and advising on the optimal application of the special regime.
Empower your business to benefit fully from the new European‑aligned VAT framework. Our experts will help you make the transition smooth, compliant, and strategically advantageous.
The present article is for information purposes only. It is not a (binding) legal advice. For a thorough understanding of the subjects covered and prior acting on any issue discussed we kindly recommend Readers consult Ilieva, Voutcheva & Co. Law Firm attorneys at law.
