Under the new rules, supplies of goods that are assembled or installed in Bulgaria by foreign suppliers established within the EU will no longer fall under the VAT reverse charge mechanism. Until now, the Bulgarian recipient could account for VAT under reverse charge. From 2026 onwards, this simplification will no longer apply.
For non-EU suppliers, such a reverse charge relief was not available previously and remains unchanged.
Mandatory VAT Registration in Bulgaria
As a consequence of the new regime, EU suppliers performing supplies of goods with installation in Bulgaria will be required to register for VAT in Bulgaria prior to carrying out their first taxable transaction. This marks a significant compliance shift for many businesses that previously relied on reverse charge and did not maintain a local VAT registration.
What Businesses Should Do Now
The upcoming change requires affected companies to:
- Review existing contractual arrangements involving supplies of goods with installation in Bulgaria
- Assess the VAT impact on current and planned transactions
- Coordinate with Bulgarian customers and other counterparties
- Ensure timely VAT registration and compliance processes are in place
Early preparation is essential to avoid disruption, unexpected VAT exposure, or delays in project execution once the new rules take effect.
If you would like to assess how this change may affect your business operations, our VAT specialists are ready to support you.
