VAT for Freelancers in Bulgaria 2026 — When to Register

Three registration scenarios

1. No VAT (most common)

If your annual turnover is below EUR 51,130 for the current calendar year and you don't provide services to EU VAT-registered businesses, no VAT registration is needed.

You simply invoice without VAT.

2. Art. 97a registration (EU B2B services)

If you provide services to EU businesses (e.g. UK/DE clients), register under Art. 97a ZDDS:

• No threshold — register before the first such invoice
• Issue invoices without Bulgarian VAT (reverse charge)
• File a VIES declaration monthly (by the 14th)
• File a VAT declaration monthly (no input VAT deduction)

This is the most common situation for IT freelancers with EU clients.

3. Standard VAT registration

Mandatory when your taxable turnover exceeds EUR 51,130 for the current calendar year (from 1 January 2026; before that a 12-month rolling threshold applied).

• Full VAT (20%) on Bulgarian services
• Monthly declarations by the 14th
• Input VAT deduction available

Art. 97a in practice

Invoice to a German client (VAT-registered DE company):

1. Issue invoice for €2,000 without VAT
2. Add "reverse charge, Art. 196 EU VAT Directive" note
3. Report in monthly VIES declaration
4. File monthly Art. 97a VAT return (zero VAT due)

Invoice to a German private person (non-VAT):

• For B2C services, the place of supply rules differ
• May need to register for VAT in Germany or use OSS (One Stop Shop)