Bulgaria Mulls Increasing Lower Threshold for VAT Registration to BGN 200 000

Bulgaria's Economy Ministry mulls increasing the lower threshold for VAT registration from BGN 50 000 to BGN 200 000 in a bid to curb the informal sector, according to Economy Minister Bozhidar Lukarski.

Lukarski declared Wednesday at a press conference that the measure had been requested by interbranch organizations, adding that the authorities expected that it would make many companies, especially small and medium-sized enterprises, move out of the informal economy.

He noted that the EUR 100 000 limit envisaged in the EU Directive was too high for Bulgaria, adding that the proposal of the Economy Ministry for a lower threshold of BGN 200 000 would be discussed with the Finance Ministry.

He made clear that the Finance Ministry backed the current threshold, while the Economy Ministry called for an increase in a bid to curb the grey sector.

Lukarski, as cited by the Bulgarian Telegraph Agency, said that Chinese investors had expressed interest in the Sofia Tech Park project and in the Trakia Economic Zone.

He said that the talks on the potential investment in the Trakia Economic Zone were to be wrapped up in June, adding that the main investment there was in the logistics sector.

Lukarski told journalists that Pakistan had also expressed interest in making a large-scale investment of the same type on the territory of the Burgas Industrial Zone.

He declared that foreign investors had shown interest in the industrial zones in Vidin and Ruse, stressing that the businesses involved manufacturing of truck parts.

Bulgaria's Economy Minister went on to say that an investor based in Denmark operating in the sector of manufacturing and trade had expressed interest in the industrial zone at Bozhurishte near Sofia.