Parliament rejects proposal to change VAT threshold
The Bulgarian Parliament did not pass the bill that provided for an increase in the threshold for mandatory registration under the Value Added Tax Act (VATA). The deputies discussed the proposal, which aimed to alleviate the administrative burden on small and medium-sized businesses in the country.
The main idea of the proponents was to increase the registration threshold to 166,000 levs, which is equivalent to 84,874 euros. According to the authors of the project, the current limit is too low and forces many small firms to spend too much time and money on accounting services instead of developing their business.
During the debates in the plenary hall, various arguments were heard. Some of the members of parliament expressed concerns that such a change could lead to a decrease in state budget revenues. Others emphasized that harmonizing these thresholds with European requirements is an important step to support entrepreneurs.
Ultimately, the majority in parliament voted "against" the change. This means that the threshold for mandatory VAT registration remains unchanged for the time being. The decision affects thousands of Bulgarian firms, which will continue to operate under the existing rules.
Business organizations have already expressed disappointment with the result, noting that they expect future discussions on the topic. It is expected that the issue of tax relief will remain part of the agenda of the economic committees in the National Assembly.