From 1 January 2023 the threshold for VAT registration is raised to BGN 100 000

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The minimum threshold for companies to be registered for VAT is currently BGN 50 000. From 1 January 2023 it increases to BGN 100 000 , subject to permission from the Council of the European Union. The bill was introduced and passed by 212 votes. This change will affect a large number of small and medium-sized enterprises and self-employed persons. The next step that MPs would take is to increase it to BGN 166 000  from 2024, which is the European Union ceiling, but permission would have to be negotiated from the EU…”

According to MP Martin Dimitrov: “This is a key reform to relieve small and micro businesses, the self-employed and many citizens. For a number of small Bulgarian producers this will give a price advantage and the opportunity to develop small businesses.”

“Considering inflation all these years, we believe that BGN 100 000 is a good threshold. It will make it easier for the small companies that carry the Bulgarian economy on their backs,” Stoyan Taslakov added.

“The law that we are considering today is one of those laws that united coalition partners, ruling and opposition parties and today we are all here in the Chamber to pass it. Amid all the political crises, today is a long-awaited victory for small and medium-sized businesses in Bulgaria. For 20 years the threshold for compulsory VAT registration has not been changed,” said Iskren Mitov.

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