Law and regulation
Bulgarian VAT Refunds Now in Euros
• 2 min read
As of 1 January 2026, Bulgaria has adopted the euro, requiring VAT refund claims and invoices to be processed in EUR with specific rules for converting 2025 BGN transactions.
As of 1 January 2026, Bulgaria has officially joined the eurozone, and the euro is now the country’s official currency. This change has direct implications for administrative processes related to foreign VAT refunds and invoicing within the transport and logistics sector.
For the first quarter of 2026, an important operational change also applies: foreign VAT claims from Bulgaria must now be processed and submitted in euros instead of the Bulgarian lev.
The first quarter of 2026 is considered a hybrid transition period within VAT administration:
- Transactions from 2025 remain based on BGN and must be converted into EUR
- Transactions from 2026 are processed directly in EUR on invoices and in systems
Carefully verify whether invoices from 2026 have indeed been issued correctly in euros. If invoices are still stated in BGN while relating to 2026 transactions, it is important to contact the supplier to request correction or reissuance in euros.
Invoices from 2025 that are still expressed in BGN must be converted into euros when submitting a VAT refund claim. The official conversion rate to be applied is:
1 EUR = 1.95583 BGN
Bulgaria’s transition to the euro will ultimately simplify VAT administration, but during the transition phase it requires careful handling of historical BGN invoices. Correct application of the official conversion rate and verification of invoice currency are essential to avoid issues with VAT refund claims.
