Bulgaria tax changes 2027: what the draft laws propose

Bulgaria's Ministry of Finance published draft laws with tax changes for 2027 on 23 September 2026, and the public consultation on the government consultation portal runs until 23 October 2026. After the consultation, the Council of Ministers decides whether to approve the drafts and submit them to the National Assembly. The changes become law only after a vote in parliament and publication in the State Gazette (Държавен вестник); until then, the amounts and dates below may change.

Tax changes 2027: which laws the drafts would amend and from when

The package covers seven laws: most changes are planned from 1 January 2027, and mandatory e-invoicing from 1 January 2028. They are the VAT Act (ЗДДС), the Corporate Income Tax Act (ЗКПО), the Personal Income Tax Act (ЗДДФЛ), the Local Taxes and Fees Act (ЗМДТ), the Accountancy Act (ЗСч), the Excise Duties and Tax Warehouses Act (ЗАДС) and the Gambling Act. Below, "Art." refers to the law as amended and "§" to the draft bill itself.

The proposed VAT registration threshold: €75,000

The draft raises the mandatory VAT registration threshold from €51,130 to €75,000 of annual domestic turnover from 1 January 2027 (§ 24 of the draft, Art. 96, para. 1 of the VAT Act). Today the €51,130 threshold is measured per calendar year (Art. 168v, para. 1), and the registration application is due within 7 days of exceeding it (Art. 96, para. 6, item 1). The same €75,000 also becomes the threshold of the domestic small business scheme (Art. 168d, para. 2, § 63 of the draft).

Example. A consultant expects €60,000 of turnover in 2027. Under the current threshold, they apply for registration within 7 days of their year-to-date turnover passing €51,130. If the draft is adopted, registration is not mandatory for them until their 2027 turnover exceeds €75,000. Voluntary registration remains possible (Art. 100, para. 1 of the VAT Act).

The draft also adds a new Art. 97g: anyone selling new buildings or regulated land plots applies for VAT registration regardless of turnover, no later than 7 days before the VAT on the supply becomes chargeable (§ 26 of the draft).

E-invoicing in the draft: mandatory from 1 January 2028

From 1 January 2028, VAT-registered suppliers established in Bulgaria will issue structured electronic invoices for domestic supplies, if the draft is adopted (new Art. 113, para. 16 and § 105, item 1 of the draft). It applies, including to advance payments, when the recipient is established in Bulgaria and is a taxable person, a non-taxable legal entity or a state or local authority. Sales to non-taxable individuals are not covered, except that an invoice issued on request to an individual in Bulgaria is structured too (Art. 113, para. 19). Non-registered suppliers will issue such invoices only to state and local authorities (Art. 113, para. 17).

• 01Format: the European standard under Directive 2014/55/EU (EN 16931), with a goods or services code and the supplier's bank account (Art. 120a, paras. 1 and 2).
• 02Compliance code: the invoice counts as issued when the NRA system generates a unique compliance code (Art. 120a, para. 3). It is issued in the NRA system or in other software that sends the data in real time (Art. 112, para. 5 and Art. 120g). The recipient's consent is not required (Art. 120d).
• 03Ledgers: purchase and sales ledgers are abolished (Art. 124, paras. 1-6 repealed), and the NRA provides a pre-filled draft VAT return by the 2nd of the following month (Art. 125, paras. 3 and 18).
• 04Transition: a tax event on or before 31 December 2027 invoiced after 1 January 2028 needs a structured invoice (§ 102, para. 2).
• 05Penalty: from 1 July 2028, for a structured invoice not issued, a fine equal to the VAT not charged, but at least €750, for individuals who are not traders, and a financial penalty (имуществена санкция) equal to the VAT not charged, but at least €1,500, for legal entities and sole traders (Art. 182a, § 85 and § 105, item 2).

A Minister of Finance ordinance will set the technical requirements within 6 months of the law's publication (§ 104).

For a detailed explanation of the e-invoicing draft, with a worked example and a preparation checklist for 2027, see Mandatory e-invoicing in Bulgaria from 2028.

Corporate income tax: asset threshold, losses and food vouchers

The Corporate Income Tax Act draft raises the value threshold for a depreciable tax asset from €357.90 to €1,000 from 1 January 2027 (Art. 50, para. 1, item 2 and Art. 51, para. 1, item 1, letter g, §§ 1 and 2 of the draft). Today a tax asset is a depreciable asset worth at least the lower of two amounts: the materiality threshold in the accounting policy and €357.90.

Tax losses will be carried forward for 10 years instead of 5, but each year no more than 70% of the positive tax result can be offset (Art. 70, para. 1 and Art. 71, para. 1). Under the draft, the cap would also apply to losses from before 31 December 2026 (§ 48).

Example. A company has €50,000 of unused tax losses and €40,000 of profit for 2027 before the offset. Under the current rules it offsets €40,000 and owes no corporate tax. Under the draft it offsets €28,000 (70%), taxable profit is €12,000, tax at the 10% rate is €1,200 (Art. 20 of the Corporate Income Tax Act), and the remaining €22,000 carries forward.

Under the draft, electronic food vouchers rise to up to €200 a month per employee, from €102.26 today (Art. 209a, para. 1, § 14 of the draft). Their value will, however, carry a 7% final tax that the employer withholds and pays (new Art. 38, para. 16, Art. 46, para. 2, item 2 and Art. 65, para. 16 of the Personal Income Tax Act, § 51 of the corporate tax draft). By the calculation in the explanatory memorandum (мотиви), vouchers of €200 carry €14 of tax and the employee receives €186.

Personal income tax: child relief and child development relief

The Personal Income Tax Act draft writes into the law a child relief of €5,000 for one child, €8,000 for two and €11,000 for three or more children, deducted from the annual tax bases from 1 January 2027 (Art. 22v, para. 1). For a child with a disability of 50% or more, the relief becomes €10,000 (Art. 22g, para. 1). The explanatory memorandum notes that from 2021 to 2026 these amounts were set yearly by the State Budget Act.

Under the draft, employees could also claim the relief monthly through the employer after a one-time written declaration: the monthly tax base is reduced by €416.67 for one child, €666.67 for two and €916.67 for three or more children (new Art. 22g1).

The new child development relief is up to €2,000 for one child, €4,000 for two and €6,000 for three or more children (new Art. 22zh, para. 1). It applies to goods and services for the health, education and sports activities of a minor child, paid during the year and bought from an unrelated seller in the EU or EEA.

Local taxes: a higher tax assessment of property

The Local Taxes and Fees Act draft raises the base values used to calculate the tax assessment of buildings and land in stages for 2027, 2028 and 2029 (Annex 2 to the Act, § 9 of the draft). The explanatory memorandum puts the increase at 30% for 2027 and a further 35 percentage points for each of 2028 and 2029: against today's values, the draft's base values are 1.3 times higher for 2027, 1.65 times for 2028 and 2 times for 2029 (the coefficients in § 10). A higher assessment raises the property tax, the tax on acquisition of property and the inheritance tax. Where the municipality bases the household waste fee on the tax assessment, the fee uses an adjusted assessment divided by the same coefficients (§ 10).

Under the draft, for 2027 only, the 5% discount goes to owners who pay the full tax by 31 May 2027 (§ 11), instead of by 30 April under the current Art. 28, para. 2 of the Act.

What is not in the package

The 2027 minimum wage and maximum insurable income are not set by these draft laws. The minimum wage for each calendar year is set by a Council of Ministers decree (Art. 244, para. 1, item 1 of the Labour Code), and the maximum monthly insurable income by the State Social Security Budget Act (Art. 6, para. 2, item 1 of the Social Security Code).

The drafts leave the headline rates unchanged: the 20% standard VAT rate (Art. 66, para. 1 of the VAT Act), 10% corporate tax (Art. 20 of the Corporate Income Tax Act) and 10% tax on individuals' total annual tax base (Art. 48, para. 1 of the Personal Income Tax Act).

What to do while the drafts are under discussion

1. If your 2027 turnover may fall between €51,130 and €75,000, track the current threshold until the new law is published.
2. Compare the materiality threshold in your accounting policy with the proposed €1,000.
3. Submit comments by 23 October 2026 through the portal or by email to the addresses in each consultation.

In smetni.app

Declarations (the purchase and sales ledgers, the VAT return, the deadline calendar and SAF-T) are in the Business and Enterprise plans of smetni.app: see the declarations guide and plans and pricing.