Bulgaria VAT Guide 2026
Bulgaria applies a standard VAT rate of 20% with a reduced rate of 9% for hotels, tourism, and accommodation services. Exports and intra-EU supplies are 0% rated. Bulgaria is part of the EU VAT area and participates in VIES.
Standard VAT Rate — 20%
The standard VAT rate of 20% applies to most goods and services, including retail, professional services, electronics, vehicles, furniture, and general consumer products.
Reduced Rate — 9% (Tourism & Accommodation)
A reduced rate of 9% applies to hotel accommodation, holiday rentals, campsites, and restaurant services within tourist establishments. This rate was introduced to boost Bulgaria's tourism sector.
Zero-Rated Supplies — 0%
- Exports of goods outside the EU
- Intra-EU supplies to VAT-registered businesses in other Member States
- International transport services
- Supplies to diplomatic missions and international organisations
VAT Exemptions
Certain supplies are exempt without credit: financial services (banking, insurance), educational services, healthcare, and postal services. Rent on residential property is generally exempt.
VAT Registration Threshold
Businesses with taxable turnover exceeding BGN 100,000 in any 12-month period must register for VAT. Voluntary registration is possible below this threshold.
VIES and Intra-EU Trade
As an EU member state, Bulgaria participates in the VIES (VAT Information Exchange System). Intra-EU supplies must be reported in VIES returns. EC sales lists are filed monthly or quarterly depending on volume. Intrastat declarations are required for large traders.
VAT Filing
VAT returns are filed monthly (standard) or quarterly (small businesses). Returns are due by the 14th day of the month following the reporting period. VAT refunds are processed within 30–45 days.
Reverse Charge
The reverse charge mechanism applies to intra-EU acquisitions, certain domestic B2B supplies (e.g., construction services, scrap metal), and imports of services from non-established suppliers.