The National Assembly rejected at the first reading the proposed amendments and supplements to the Value Added Tax Act (VATA). The bill was submitted by Ivaylo Shotev and a group of MPs from "We Continue the Change" (PP). The voting results in the plenary hall showed 39 votes "in favor," six "against," and 119 "abstentions," which meant the proposal was not adopted.
The main objective of the submitted bill was to increase the threshold for mandatory VAT registration to 84,874 euros. In their reasoning, the sponsors point out that this change would ease the administrative and financial burden on micro and small enterprises while simultaneously stimulating the entrepreneurial environment. According to Ivaylo Shotev of PP, a higher threshold would allow newly created companies to start operations without being immediately burdened by the VAT regime. He emphasized that the measure would benefit thousands of small traders, artisans, startups, and self-employed professionals, allowing them to reinvest funds into improving the quality of their products and services.
During the debates, Asen Vassilev from PP justified the introduction of the initiative by the lack of such a proposal from the Council of Ministers. He called for support for the bill, proposing that a discussion be held with the Ministry of Finance (MF) between the first and second reading to refine the parameters. Martin Dimitrov from "Democratic Bulgaria" supported the idea, describing it as "one of the most meaningful reforms," and mentioned that his political force also has a similar project developed.
Categorical support was expressed by "Vazrazhdane." Dimo Drenchev pointed out that his party submits similar proposals annually during budget discussions. Tsoncho Ganev added that the threshold should be increased immediately, while expressing skepticism that the current government would take such a step.
Temenuzhka Petrova from GERB-UDF spoke out against the proposal. She justified her position by citing the current crisis in public finances, stating that the moment is inappropriate for actions that would lead to a reduction in state budget revenues. She added that such incentives for small businesses could be discussed at a later stage.
Konstantin Prodanov from "Progressive Bulgaria" (PB) noted that the issue is being discussed with the Ministry of Finance during the preparation of the 2027 budget. He emphasized the need for an analysis of the fiscal impact of a potential phased increase in the threshold in order to make an informed decision. His colleague Milen Trifonov confirmed that there is a consensus regarding the need to review the threshold and expressed expectations that the Ministry of Finance will soon present its own package of legislative measures in this direction.