In Focus

Change of the threshold for compulsory registration under the Value Added Tax Act

July 25, 2022

Change of the threshold for compulsory registration under the Value Added Tax Act

In State Gazette, issue 58 (extraordinary) of 23 July 2022 a Law on Amendment of  the Value Added Tax Act (VATA) was published. With the amendment of Art. 96 VATA the threshold for compulsory registration has been changed from BGN 50,000 to BGN 100,000. The purpose of this amendment is to reduce the administrative burden on micro- and small enterprises. On the other hand, the increase of the registration threshold would make easier the work of the revenue administration related to the control on compliance.

The amendment becomes effective on the first day of the month following the month of enforcement of the European Council decision for granting Bulgaria the right to introduce a special measure of derogation from Art. 287 of Directive 2006/112/EC, but not before 1 January 2023.

This material is not exhaustive, but rather has general information nature and does not constitute specific advice or consultation. Should you have questions, do not hesitate to contact us at Tel. + 359 2 9433700, Fax + 359 2 9433707, e-mail: office@afa.bg or at the following address: 1504 Sofia, 38, Oborishte Street.

Go to In Brief: All