VAT registration for freelancers in Bulgaria: threshold, deadline and what follows
· 7 min read · The Danak team
If you work in a liberal profession or run a sole-practitioner business, you may at some point reach the threshold for compulsory VAT registration. This threshold is not tracked by calendar year but as a rolling 12-month period, and the deadline for registration is strict. Here is what you need to know about registration, how turnover is calculated, and what changes afterwards.
What is the VAT registration threshold for 2026
The obligation to register for VAT arises when your taxable turnover in Bulgaria exceeds €51,130 over the last 12 consecutive months. This is the national threshold under Art. 96(1) of the VAT Act (ЗДДС), valid from 1 January 2026.
The boundary is exactly €51,130 — when you exceed it, the obligation to register arises. The amount is in euros and is not recalculated into leva.
How taxable turnover is determined
Taxable turnover is the sum of the tax bases of:
- taxable supplies, including those at zero rate;
- supplies of financial services under Art. 46 of the VAT Act (ЗДДС);
- supplies of insurance services under Art. 47 of the VAT Act (ЗДДС).
Turnover is determined for the last 12 consecutive months before the current month. This is the key detail: it is not about the calendar year but about a rolling 12-month period. After the end of each calendar month, you check whether the total turnover for the last 12 months (excluding the current one) exceeds the threshold.
For example, at the end of October 2026, you add up turnover from November 2025 to October 2026 inclusive. At the end of November 2026 — from December 2025 to November 2026, and so on.
Two cases in which turnover must be tracked
Besides the regular check after each month, the law requires you to track turnover daily for a period not longer than two consecutive months, including the current one. This means that if your business is growing rapidly and you reach the threshold within one or two months, the obligation arises immediately — you do not wait for the end of the month.
For example, if in the middle of the current month the total turnover from the previous month and the current one exceeds €51,130, the obligation to register arises on that date.
Within what deadline must the application for registration be filed
Once you reach the threshold, you have seven days to file an application for VAT registration with the National Revenue Agency (НАП).
- When the 12-month threshold is reached: the seven-day period starts running from the end of the month in which turnover was exceeded.
- In the case of rapid growth (two months): the seven-day period starts from the very date on which you reached the threshold.
You may file the application in person at the National Revenue Agency (НАП) or electronically. You attach a statement of taxable turnover by month.
Important: even if you file the application late, your registration date is the day following the day on which the threshold was exceeded. The delay does not cancel the obligation to charge VAT from that moment and leads to a penalty.
What are the penalties for a missed deadline
If you do not file the application on time, the National Revenue Agency (НАП) may impose a fine of between €255.65 and €2,556.46 under Art. 178 of the VAT Act (ЗДДС). In addition, if the revenue authorities establish that you have not fulfilled your obligation, they will register you ex officio and will specify the date on which you should have been registered. This means you will owe VAT from that moment, even if you did not charge it, and you will have to settle the accounts.
What happens after registration
Once the National Revenue Agency (НАП) issues a registration decision, your status changes: you are now a VAT-registered person and this brings new obligations.
Charging VAT
From the date of registration, you start charging VAT on the supplies you make. The standard rate is 20%. This means that on each invoice you add 20% tax, which you then pay to the National Revenue Agency (НАП) (reduced by the input tax you are entitled to deduct).
Returns and ledgers
The tax period for VAT is one month and coincides with the calendar month. Every month you file:
- VAT return (справка-декларация) — by the 14th of the following month;
- Sales ledger (дневник за продажбите) — a register of the invoices you have issued;
- Purchase ledger (дневник за покупките) — a register of the invoices you have received (if you have any);
- VIES declaration — if you make intra-Community supplies.
All documents are filed electronically with the National Revenue Agency (НАП). There is no provision for extending the filing deadline. A late return leads to a fine of between €255.65 and €5,112.92 under Art. 179(1) of the VAT Act (ЗДДС).
Your first tax period covers the time from the date of service of the registration decision to the end of the month.
Payment of tax
VAT is paid by the same deadline as the return is filed — by the 14th of the following month. If the VAT you have charged (on sales) is greater than the input tax you have claimed (on purchases), you pay the difference. If the credit is greater, the difference carries forward to the next period or you may request a refund.
Common mistake: tracking by calendar year
The most common mistake is to think that the €51,130 threshold is tracked within the calendar year — from January to December. In fact, it is tracked for every 12-month period.
For example, if from March 2025 to February 2026 inclusive your turnover exceeds €51,130, the obligation to register arises at the end of February 2026, even though your turnover for calendar-year 2025 was lower. Conversely, if your total turnover for the calendar year is high but it is distributed such that no 12-month period exceeds €51,130, no obligation arises.
It is therefore important to track turnover after each month — by adding up the last 12 months and checking whether the total exceeds the threshold.
How Danak helps with tracking turnover
<a href="app:calculator">Danak</a> tracks your turnover automatically for VAT registration and alerts you when you approach or exceed the threshold. After registration, the application prepares the VAT return, sales ledger and VIES declaration in the format required by the National Revenue Agency (НАП).
If you are already registered
If you are already a VAT-registered person, even if your turnover falls below the threshold, the obligation to charge VAT and file returns remains. You may request deregistration, but this is done under certain conditions and procedures, which are not the subject of this article.
What to do now
If you have recently started your business, check your turnover for the last 12 months once a month. If you are approaching the threshold or think you may exceed it within one or two months, keep a more detailed record and track the dates on your invoices.
When you reach the threshold, gather documentation of your turnover and file the application with the National Revenue Agency (НАП) within the seven-day deadline. If you are not sure how to calculate taxable turnover or whether a particular supply is included in it, consult an accountant.
After registration, working with VAT becomes a routine task: every month you prepare the return, the ledgers and pay the tax by the 14th. Automated tracking of invoices and turnover makes the process considerably easier.
Frequently asked questions
What is the threshold for compulsory VAT registration in 2026?
The threshold is €51,130 of taxable turnover over the last 12 consecutive months. When you exceed it, you have seven days to file an application for registration with the National Revenue Agency (НАП).
How is turnover tracked for VAT registration?
Turnover is tracked as a rolling 12-month period. After the end of each month, you add up turnover for the last 12 months and check whether it exceeds €51,130. In addition, you track whether turnover for a period not longer than two months, including the current one, exceeds the threshold.
What changes after VAT registration?
After registration, you start charging 20% VAT on your supplies, you file a monthly return and ledgers by the 14th of the following month, and you pay the tax by the same deadline. Your first tax period covers the time from the registration date to the end of the month.
What are the penalties if I do not register for VAT on time?
The fine for failure to register is between €255.65 and €2,556.46 under Art. 178 of the VAT Act (ЗДДС). In addition, the National Revenue Agency (НАП) may register you ex officio and you will owe VAT from the date on which you should have registered, even if you did not charge it.
Is the threshold tracked by calendar year?
No. The threshold is tracked over the last 12 consecutive months, not the calendar year. You may reach the threshold in the middle of the year if turnover for the preceding 12 months exceeds €51,130.