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Tripartite council backs 2027 tax changes, including a higher VAT registration threshold

1 min read

Calculator, pen, blank tax forms and euro coins on an office desk Financial
Calculator, pen, blank tax forms and euro coins on an office desk

Employers and unions supported draft amendments to eight tax laws, which phase in a higher VAT threshold and add an excise duty on powerful cars.

Bulgaria's National Council for Tripartite Cooperation has supported draft amendments to eight tax laws for 2027, Finance Minister Galab Donev said after the council met on Friday 23 October, BTA reported. The council added editorial comments on the Gambling Act and on the Corporate Income Tax Act provisions on excess profits.

One of the most significant changes for small businesses is a gradual rise in the mandatory VAT registration threshold. Under the draft, the threshold will be EUR 60,000 from 1 January 2027, EUR 70,000 in 2028 and EUR 75,000 in 2029. The Finance Ministry said the gradual approach follows recommendations from the European Commission and the International Monetary Fund.

The package also introduces an excise duty on passenger cars with engine power above 250 kW. For hybrid vehicles, only the output of the internal combustion engine will count. Electric vehicles, ambulances and certain other categories will be exempt. Further changes tighten controls on nicotine in electronic cigarettes.

On food vouchers, the draft sets a limit of EUR 200 and a 7% tax on vouchers. Some participants expressed reservations about taxing amounts above EUR 102.26, according to BTA.

Employer organisations raised concerns about the proposed excess profits tax. The Confederation of Employers and Industrialists in Bulgaria also questioned the Gambling Act amendments, particularly those affecting land-based operators, warning that requirements beyond operators' control could lead to legal disputes and future costs for the state. The Bulgarian Industrial Capital Association said that the conversion of fines in the draft amounted to an increase of about 95.58%.

The amendments now go forward as part of the 2027 budget process. For companies, the key dates to watch are the parliamentary votes on the tax laws and the final wording of the excess profits and voucher provisions, which will affect payroll planning and pricing decisions for next year.

Sources