ДДС — Bulgarian VAT regimes (20 / 9 / 0%)

ДДС (данък върху добавената стойност — Bulgarian VAT, literally "value added tax") is governed by the Закон за данък върху добавената стойност (ЗДДС — VAT Act). The standard rate of 20% has been in place since 1999, one of the most stable and legible in Europe. A single reduced rate remains permanent: 9% on hotel accommodation. The temporary 9% on restaurants and books ended on 1 January 2025.

History — from 1994 to the Bulgarian flat tax

Bulgaria introduced ДДС in 1994, during the post-communist transition, at 18%, then raised it to 20% in 1999. The rate has never moved since — a rare point of stability in Europe, consistent with Bulgaria's flat tax policy (personal and corporate income tax at 10%, among the lowest in the EU).

EU accession in 2007 required overhauling the ЗДДС to transpose Directive 2006/112/EC. The 9% reduced rate appeared in 2011 to support tourism (accommodation). COVID measures (2020-2022) temporarily extended the 9% to restaurants and books, but this extension expired on 31 December 2024: since 1 January 2025, only accommodation stays at 9%.

1994       | Introduction of ДДС (VAT) in post-communist Bulgaria,
           | initial standard rate 18%.
           |
1999       | Raised to 20% — the standard rate has stayed at 20% ever
           | since, one of the most stable in Europe.
           |
2007-01-01 | EU accession. The Закон за данък върху добавената стойност
           | (ЗДДС) is overhauled to transpose Directive 2006/112/EC.
           |
2011       | Introduction of a 9% reduced rate for hotel accommodation
           | (tourism), permanent since.
           |
2020-2022  | COVID measures: temporary 9% reduced rate extended to
           | restaurants, books and certain goods — prolonged to
           | 31 December 2024.
           |
2025-01-01 | End of the temporary 9% on restaurants and books: back to 20%.
           | Only the 9% hotel rate stays permanent. Registration threshold
           | lowered to BGN 100,000 (April 2025).
           |
2026-01-01 | Euro adoption. ЗДДС amounts converted BGN → EUR at the fixed
           | rate EUR 1 = BGN 1.95583; registration threshold EUR 51,130
           | per calendar year.

Governance — NRA + Ministry of Finance

The Национална агенция за приходите (NRA, revenue agency), under the Министерство на финансите (Ministry of Finance), administers ДДС. The NRA e-services portal centralises registration, the monthly return (справка-декларация form) and the purchase/sales ledgers (дневник за покупките / дневник за продажбите). Identification uses a qualified certificate (КЕП) tied to the ЕИК / EIK.

Rate changes fall to the Народно събрание (National Assembly), on government proposal, and are published in the Държавен вестник. VAT control rests on ledger reconciliation, the intra-EU VIES return and — since 2026 — large enterprises' SAF-T files.

Technical schema — rates, codes, filing

The codes used in EN 16931 e-invoicing rely on the UNCL5305 (Tax Category Code) classification. The Bulgarian mapping:

Code 20 (S)  | Standard 20% — goods and services by default
Code 9  (S)  | Reduced 9% — hotel accommodation (настаняване в хотели)
Code 0  (Z)  | Zero — exports outside the EU, intra-EU B2B supplies
             | (чл. 28 and чл. 7 ЗДДС)
Code AE      | Reverse charge — intra-EU B2B services, domestic reverse
             | charge (waste, grains — приложение № 2 ЗДДС)
Code E       | Exemption — health, education, financial services
             | (чл. 38 ff. ЗДДС)

• Standard 20% — UBL category S, default on goods and services.
• Reduced 9% — category S with 9% rate; restricted to hotel accommodation (чл. 66, ал. 2 ЗДДС).
• Zero 0% — exports (чл. 28 ЗДДС) and intra-EU B2B supplies (чл. 7 ЗДДС), category Z; mandatory mention and a VIES-validated buyer VAT number.
• Reverse charge — intra-EU B2B services (category AE), mention "обратно начисляване" + reference to art. 196 of Directive 2006/112/EC.
• Domestic reverse charge — Annex № 2 ЗДДС (waste, certain grains and oilseeds).

Bulgarian VAT vs EU neighbours

Bulgaria has the lowest standard rate in its immediate region (20%), with a particularly simple rate structure: a single reduced rate, limited to accommodation. This simplicity, combined with the 10% flat tax, is part of the country's stated tax attractiveness.

Adoption — thresholds, OSS, reverse charge

• Registration threshold EUR 51,130 of taxable turnover per calendar year since 2026 (equivalent to BGN 100,000). Below it, no mandatory collection or deduction.
• OSS / IOSS — Bulgaria applies the One Stop Shop and Import One Stop Shop regimes since 1 July 2021 via the NRA (transposing Directive 2017/2455/EU).
• Domestic reverse charge — sectors listed in Annex № 2 ЗДДС (ferrous waste, certain grains/oilseeds).
• Exemptions — health, education, financial services and insurance (чл. 38 ff. ЗДДС).

Common pitfalls

• Restaurants: 20%, not 9% since 2025. Many ERPs keep the expired COVID 9% by default. A frequent error for chains and hotels with an integrated restaurant.
• 9% restricted to accommodation alone. A hotel stay is at 9%, but ancillary services (minibar, separately billed spa) may fall under 20%. Watch the split.
• EUR currency from 2026. A ДДС invoice issued in BGN for an operation after 1 January 2026 must be converted at the fixed rate EUR 1 = BGN 1.95583. See the Lev → Euro page.
• 0% intra-EU without VIES validation. A 0% intra-EU B2B supply requires a buyer VAT number valid in VIES; otherwise the NRA reclassifies at the domestic rate.
• Wrong exemption reference. The 0% on export must cite чл. 28 ЗДДС; intra-EU чл. 7 ЗДДС. A generic "art. 138 directive" mention without the associated Bulgarian text can be challenged at audit.

Cross-links

• Bulgaria hub — full view
• ЕИК / EIK — 9-digit identifier
• SAF-T 2026 — accounting reporting
• Lev → Euro — 2026 monetary transition
• No B2B mandate
• NRA — Национална агенция за приходите
• lex.bg — Закон за данък върху добавената стойност (ЗДДС)