Bulgaria Joins the Eurozone: What Businesses Need to Know

On 8 July 2025, the Council of the European Union officially confirmed that Bulgaria will join the eurozone on 1 January 2026. This decision marks a major milestone for the country’s economic integration into the EU and will bring several changes for businesses operating in or trading with Bulgaria — particularly in the area of VAT compliance.

Key VAT and Business Changes as Bulgaria Adopts the Euro in 2026

1. Fixed Conversion Rate Announced

The Bulgarian lev (BGN) will be replaced by the euro (EUR) at a conversion rate of 1.95583 BGN = 1 EUR. This is the same central rate at which the lev has been pegged under the Exchange Rate Mechanism (ERM II) since July 2020.

Businesses must start preparing their accounting, invoicing, and pricing systems to accommodate dual display of prices and the eventual switch to euros.

2. New Currency, Same VAT Framework

Although Bulgaria will adopt the euro, its VAT rules will remain based on the EU VAT Directive. Businesses must:

• Update VAT invoices to reflect euro amounts.
• Ensure VAT reporting and payments are adjusted for the new currency.
• Pay attention to transitional rules (expected to be issued by the Bulgarian tax authorities) on how to handle VAT documents that span the end-of-year changeover.

Discover our overview of VAT rates in Bulgaria.

3. Legal Update: EU Regulation and Euro Adoption Timeline

The exchange rate change will be implemented through an amendment to Regulation (EC) No 2866/98, effective 1 January 2026. From now until then, the ECB and the Bulgarian National Bank will continue to monitor exchange rate stability.

Since October 2020, the ECB has directly supervised significant Bulgarian credit institutions. This close cooperation has strengthened Bulgaria’s alignment with eurozone financial and fiscal standards — giving confidence in the smooth implementation of the currency transition. Learn more in the official press release from the ECB.

Marosa Expert Tips

• Start early preparations for currency conversion in ERP and invoicing systems.
• Train finance and tax teams on dual currency reporting and VAT adjustments.
• Engage with local advisers to follow guidance from the Bulgarian tax authority on transitional VAT treatment.
• Communicate clearly with customers and suppliers to ensure transparency and minimize confusion during the switchover period.

The transition to the euro presents both challenges and opportunities. For VAT-registered businesses, timely planning will ensure compliance and avoid disruptions as Bulgaria makes this important step into the eurozone.

If you need help preparing for the change, our team is here to support you. Our VAT compliance software VATify can help you automate and simplify things.