VAT in Bulgaria for Romanians: when you pay, how much, and how you invoice into Romania
de Semra Atalay, Senior Consultant · updated 22 mai 2026
"But what about VAT? Can I invoice my clients in Romania?" — these are among the first serious questions someone genuinely thinking about moving asks. And where the most confusion circulates. Let's clear it up.
In short
A Bulgarian company isn't automatically VAT-registered — you become liable only above a turnover threshold (around €51,000). The standard rate is 20%. And yes, you can invoice clients in Romania from a Bulgarian company, perfectly legally — there's a European mechanism for exactly this. Below, one at a time.
Is my new Bulgarian company automatically VAT-registered?
No. At incorporation, a Bulgarian company usually starts without VAT registration. You become VAT-registered either when you cross a turnover threshold, or if you register voluntarily (sometimes it makes sense — see below). So you don't find yourself with VAT obligations from day one, just because you opened the company.
From what amount do I become liable?
The mandatory registration threshold in Bulgaria is around €51,130 in turnover in a calendar year (re-confirm up to date — it was expressed in euro after Bulgaria switched to the euro in 2026). Cross it and you're obliged to file a registration application with the Bulgarian tax authority (NRA). Below it, you can stay non-registered — or you can register voluntarily.
How much is VAT in Bulgaria?
20% standard rate — the same as in many EU states. There's also a reduced rate of 9% for certain services (for example tourism/accommodation). For comparison, in Romania the standard VAT is now 21% (up from 19% in August 2025). So, by level, they're close — the real difference isn't VAT, but profit and dividend tax.
Can I invoice my clients in Romania? What about VAT?
Yes, you can — and this is one of the most persistent myths ("you can't invoice Romanian clients from a Bulgarian company"). False.
When a VAT-registered Bulgarian company invoices a company in another EU state (including Romania), the reverse charge mechanism for intra-Community supplies comes into play: the invoice is issued with 0% VAT, and the VAT "moves" to the client, who handles it in their own country. For sales to individuals in another EU state the rules are different (other thresholds apply and, as the case may be, the VAT of the client's country) — which is why, if you mainly sell to consumers, the calculation is done separately.
In short, for transactions between EU companies, the system is built precisely so VAT isn't paid twice. It's not a loophole — it's how the single market works.
Do I have to file anything even if I had no activity?
Yes — if you're VAT-registered in Bulgaria, you file the VAT return even for months with no activity (a "nil" return). It's a reporting obligation that doesn't disappear just because in a given month you invoiced nothing.
Is it worth registering for VAT voluntarily?
It depends on who your clients are. If you mainly work with EU companies and buy goods/services with VAT, voluntary registration can let you recover VAT and work cleanly intra-Community. If you mainly sell to individuals, the calculation is different. There's no universal answer — it depends on your model, and this is exactly where advice on your concrete situation makes the difference.