Bulgaria: European Commission approves implementation of VAT exemption on small businesses
The Council Implementing Decision authorizing Bulgaria to introduce a special measure was approved through the issued Decision No. COM (2022) 352 by the EU Council.
The decision allows Bulgaria to enact VAT exemptions for small businesses with yearly income up to EUR 51,130 in derogation from Article 287 of Directive 2006/112/EC on the common system of value-added tax. This results in a drop in VAT revenue collection in Bulgaria of about 1%. However, it will not have a substantial impact on the overall amount of VAT income or the total amount of tax revenue received during the final consumption.
Due to the favourable impact, the Decision is effective as of 13 October 2021 and is applicable through 31 December 2024.
Source: europa.eu
