Bulgaria’s revenue agency: Threshold for registration for VAT lowered as of April 1
Bulgaria’s National Revenue Agency (NAP) has issued a reminder that as of April 1 2025, the threshold for mandatory registration for Value-Added Tax (VAT) drops from 166 000 leva taxable turnover over the past 12 consecutive months to 100 000 leva or more over that period.
The change was voted as part of Bulgaria’s Budget Act 2025, and reverses an amendment approved at the time of the ruling majority when the governing mandate was held by the reformist We Continue the Change – Democratic Bulgaria coalition.
In debate on the Budget Act 2025, WCC-DB opposed the reduction of the threshold for registration for VAT, saying that it would increase the burden on small businesses.
NAP said in a statement on its website on March 31: “It should be borne in mind that the specified threshold is applicable when determining the taxable turnover both for the purposes of mandatory registration under the Act and in cases of deregistration.
“Registered persons with a taxable turnover for a period not longer than the past 12 consecutive months of less than 100 000 as of April 1 2025, who wish to remain registered under the Act, are not required to submit an application for de-registration,” NAP said.
Meanwhile, NAP is continuing its campaign against tax evasion by small businesses, this time by checking thousands of home repair workers to see if they are reporting their income correctly.
“An analysis of the risk of concealment of profits and income in this industry shows that in over 60 per cent of home repairs and improvements, craftsmen do not provide a financial document on receipt of payment for their work,” the agency said.
A significant part of this industry does not declare their income in full or fails to file an annual tax return, it said.
Earlier in March, NAP said that it had identified nearly 10 000 individuals working as beauticians, hairdressers, masseurs, manicurists, tattoo artists, and others, whom they said – according to the agency’s risk analysis – were among the riskiest for tax evasion.
“The risk analysis indicates that a large part of risky individuals commit violations due to ignorance or negligence,” NAP said, adding that it had prepared a brochure providing guidelines can declare and pay their taxes and social security obligations.
(Photo: Interior Ministry)
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