Bulgaria requires foreign suppliers from other EU countries to VAT‑register for “supply and install” contracts from January 2026

28 January 2026

Bulgaria requires foreign suppliers from other EU countries to VAT‑register for “supply and install” contracts from January 2026

Bulgaria has introduced changes to the VAT treatment of goods supplied with installation or assembly by foreign EU suppliers, effective 1 January 2026. Under amendments to the VAT Act published at the end of December 2025, these transactions will no longer fall under the domestic reverse‑charge mechanism.

Instead, EU suppliers will become responsible for charging Bulgarian VAT and must register for VAT in Bulgaria before carrying out their first taxable “supply and install” transaction.

Previously, Bulgarian customers could self‑account for VAT where the EU supplier was not established in Bulgaria, avoiding the need for VAT registrations by the EU suppliers.