For the time being, small and medium-sized Bulgarian companies trading in other EU countries will not be able to benefit from the VAT relief. It is still unknown how long local businesses will be burdened with more bureaucracy and costs than their competitors in most Member States.
This is clear from a written response from Finance Minister Temenuzhka Petkova to Martin Dimitrov, a member of parliament from the „We Continue the Change – Democratic Bulgaria“ party.
In it, Dimitrov raises the question of why Bulgaria has not yet transposed European Directive (EU) 2020/285, which introduces a new regime for small and medium-sized enterprises (SMEs) and a threshold of BGN 200,000 for VAT registration in cross-border trade. The idea behind the single threshold is that it eliminates the need for VAT registration in each Member State separately, reducing the administrative burden on SMEs, cutting their registration costs, and making it easier for businesses to enter foreign markets.
Already 20 out of 27 EU countries have introduced this option for SMEs into their legislation. Why is Bulgaria lagging behind…?“ asks Dimitrov.
In his written response, the finance minister explains that as early as 2024, there was a draft law amending the Value Added Tax Act (VATA) to introduce the regime in question. It was approved by the Council of Ministers (CM) and even submitted to the National Assembly. However, by a decision of the MC on January 23, in the first days of the Zhelyazkov cabinet, the draft was withdrawn.
At present, the draft amendment is included as a proposal in the Legislative Program of the MC for the period July-December 2025,“ Petkova adds.
It is important to note that the single threshold for registration in cross-border trade differs from the national threshold, which was reduced from BGN 166,000 to BGN 100,000 on April 1 this year, which applies to domestic trade. The national threshold applies only within Bulgaria and is a relief for local businesses, while the single threshold applies to cross-border activities.
Translated with DeepL.
Източник: Economic.bg
