Bulgaria VAT Threshold Rise & DAC8/DAC9 Changes

After officially adopting the euro as its national currency, Bulgaria is moving towards further harmonization with EU-wide rules and regulations. Recently, the Bulgarian National Assembly accepted for consideration three draft laws proposing amendments to the national VAT Law. In addition to aligning national rules with those adopted on the EU level, the proposed amendments also seek to raise the mandatory VAT registration threshold.

Key Proposed Amendments 

The Bulgarian National Assembly agreed to consider two draft Laws which propose amendments to Bulgaria’s tax legislation in line with EU Directives 2023/2226/EU (DAC8) and 2025/872/EU (DAC9). Once adopted and transposed into national legislation, these amendments will introduce a set of measures to expand and strengthen automatic exchange of information (AEOI) rules in line with updated international tax transparency standards.

The main change is the extension of reporting requirements to include information returns on crypto-asset users in Bulgaria and other EU member states, as well as additional tax-related data concerning multinational enterprise groups and large domestic groups that fall under the OECD Pillar Two global minimum tax framework. Additionally, the Common Reporting Standard (CRS) will expand its scope to cover electronic money and central bank digital currencies, reflecting the growing use of digital financial instruments.

Besides these DAC8 and DAC9 rules, the proposed amendments also seek to increase the VAT registration threshold from EUR 51,130 to EUR 85,000. If adopted, the new VAT threshold will take effect on January 1, 2027. In addition to reducing the number of businesses required to register for VAT, many small and medium businesses may find it easier to comply with accounting, reporting, and invoicing requirements. Until then, the current threshold remains in place.

Conclusion

While aligning national rules with EU legislation on DAC8 and DAC9 may be seen as a formality, the proposed increase to the VAT registration threshold represents a meaningful step toward reducing administrative and compliance burdens for Bulgarian businesses. That said, taxable persons liable for VAT in Bulgaria should await final confirmation of the enacted legislation before making any business-related decisions.

Source: National Assembly of the Republic of Bulgaria - 52-602-01-10, National Assembly of the Republic of Bulgaria - 52-654-01-2, National Assembly of the Republic of Bulgaria - 52-654-01-14