The National Assembly’s Budget and Finance Committee will review today a package of bills related to tax policy and preparations for the 2027 budget. The meeting is scheduled for 9:30 a.m. The agenda includes amendments to the laws on local taxes and fees, VAT, corporate income tax, personal income tax, excise duties and tax warehouses, and accounting.
The proposals were approved by the Council of Ministers on November 4 and submitted to Parliament on November 5. One of the key provisions envisages introducing a 33% excess profits tax in 2027 for banks, insurance companies, telecommunications companies, currency exchange offices, payday lenders and food retailers with net sales revenue of at least €5 million in 2026. The government proposes that 30% of this tax could be waived for specific investments or the formation of reserves.
“The package of tax measures for 2027 has a clear objective – to ensure sustainable growth in budget revenues and the financial stability of the state,” Deputy Finance Minister Lyudmila Petkova said.The VAT Act provides for a gradual increase in the mandatory registration threshold. It is expected to reach €60,000 in 2027, €70,000 in 2028 and €75,000 in 2029. Small businesses below the respective threshold will retain the option of voluntarily applying the general VAT regime.
Changes to Property Taxation and Reporting
The draft amendments to the Local Taxes and Fees Act envisage that the tax assessments of buildings, land, improvements and agricultural land will be updated over three consecutive years. The proposal is for an increase of 30% in 2027 and 35% each in 2028 and 2029.
The package also includes measures for electronic invoicing, the automated exchange of data between businesses and the National Revenue Agency, as well as changes related to the reporting of sales and the control of excise goods.
The Bulgarian Industrial Capital Association supports the goal of curbing illicit trade in excise goods, but insists that the requirements be proportionate and not create an unjustified administrative burden. The association has also called for clarification of the rules on the digitalization of VAT reporting, electronic invoicing and the standard audit file for tax purposes.
The Budget Committee’s decisions will be taken at first reading. The bills must then be considered in the plenary chamber before the procedure for adopting the 2027 budget can continue.
Sources: bta.bg, utroruse.com, 24chasa.bg