What is the VAT rate in Bulgaria in 2026?

Bulgaria's standard VAT rate is 20%. A reduced 9% rate applies to hotel accommodation, books, baby food, and baby diapers, and 0% covers exports and intra-EU supplies.

Do I need to register for VAT in Bulgaria as a foreign business?

Yes. Non-established businesses have no registration threshold in Bulgaria and must register before their first taxable sale. The domestic small-business exemption applies only to Bulgarian-established businesses.

Is SaaS taxable in Bulgaria?

Yes. SaaS and other electronically supplied services are taxed at the 20% standard rate. B2C sales are taxed where the customer is located and are usually reported through the EU One Stop Shop (OSS).

What is the EU distance-selling threshold for Bulgaria?

EUR 10,000 per year across all EU B2C sales of goods and digital services. Above it you charge Bulgarian VAT on sales to Bulgarian consumers and report through OSS.

What are the penalties for late VAT in Bulgaria?

Failure to register on time can draw a fine of BGN 500 to BGN 5,000 plus liability for the VAT that should have been charged. Late or missing returns carry fines of BGN 500 to BGN 10,000. Late payment accrues interest at the Bulgarian National Bank base rate plus 10 percentage points.

Bulgaria VAT Guide for 2026: Rates, Registration & Filing

Bulgaria's standard VAT rate is 20%, with a reduced 9% band. Learn the registration threshold, OSS, and monthly filing requirements.

Last updatedSeptember 22, 2026

Key Takeaways

Bulgaria applies a standard VAT (DDS) rate of 20% to most goods and services, including SaaS and digital products, with reduced and special rates for specific categories. A non-established business must register as soon as it makes taxable supplies, with no threshold; for EU-wide B2C distance sales, VAT is due once sales exceed the EU-wide EUR 10,000 threshold. Most financial and insurance services, healthcare, education, and residential letting are exempt; exports and intra-EU B2B supplies are zero-rated.

Taxability Snapshot

SaaS

Taxable

Digital Goods

Taxable

Sales Tax Rates

Bulgaria applies a standard VAT (DDS) rate of 20% to most goods and services, including SaaS and digital products sold to consumers. Reduced and special rates apply to specific categories:

Rate	Applies to
20% (standard)	most goods and services, SaaS, and digital services
9% (reduced)	hotel and tourist accommodation, books, baby food and hygiene items
0% (zero)	intra-EU supplies, exports, international transport

Electronically supplied services are taxed where the customer is located, so a foreign SaaS seller charges Bulgarian VAT on B2C sales and reports it through the EU One Stop Shop (OSS).

Registration & nexus threshold

Bulgaria uses VAT registration rules rather than US-style economic nexus. A non-established business must register as soon as it makes taxable supplies in Bulgaria, with no threshold [2]. For cross-border B2C sales within the EU, VAT is due in the customer's country once total EU distance sales exceed the EU-wide EUR 10,000 threshold, reportable through the One Stop Shop [2]. Registration steps are in the How to Register section.

Filing frequency & deadlines

Bulgarian VAT returns are filed monthly. The return, sales and purchase ledgers, and payment are all due by the 14th of the following month.

Exemptions

Exempt supplies include most financial and insurance services, healthcare and medical services, education, and the letting of residential property. Exports and intra-EU B2B supplies are zero-rated.

Penalties

Failure to register on time can draw a fine of EUR 255 to EUR 2,556 plus liability for the VAT that should have been charged. Late or missing returns carry fines of EUR 255 to EUR 5,113. Late payment accrues interest at the Bulgarian National Bank base rate plus 10 percentage points. Bulgaria adopted the euro on 1 January 2026; former lev penalty amounts convert at the fixed rate of BGN 1.95583 to EUR 1.

Sources

Verified July 2026 against European Commission and Bulgaria National Revenue Agency guidance.

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