- Bulgaria will join the eurozone on 1 January 2026, impacting VAT compliance and business operations.
- The fixed conversion rate is set at 1.95583 BGN to 1 EUR.
- Businesses need to prepare accounting, invoicing, and pricing systems for dual currency display and eventual euro adoption.
- VAT rules will remain based on the EU VAT Directive, requiring updates to VAT invoices and adjustments in reporting and payments.
- Transitional rules for VAT documents spanning the changeover are expected from Bulgarian tax authorities.
- The exchange rate change will be implemented through an amendment to Regulation EC No 2866/98.
- The ECB and Bulgarian National Bank will monitor exchange rate stability until the transition.
- Businesses should start early preparations for currency conversion in ERP and invoicing systems.
- Finance and tax teams need training on dual currency reporting and VAT adjustments.
- Engage with local advisers for guidance on transitional VAT treatment.
- Clear communication with customers and suppliers is essential to minimize confusion during the transition.
Source: marosavat.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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