Invoicing in euro from 1 January 2026: what changes for VAT

On 1 January 2026 the euro becomes Bulgaria’s currency, at the fixed rate of 1.95583 leva per euro. For VAT-registered businesses, the changeover is mostly a matter of preparation: systems, invoice templates and a clear rule for the transition months.

Invoices from 1 January 2026

Invoices issued from 1 January 2026 are issued in euro. That applies to the amounts, the tax base and the VAT. During the transition period, prices and some documents also show the amount in leva for information, but the euro amount is the one that counts.

Check before year end:

• your invoicing software can issue invoices in euro, with correct rounding,
• invoice numbering continues without gaps,
• templates, contracts and price lists have been updated,
• recurring invoices set up in leva are converted.

VAT returns: the period decides

The currency of a VAT return follows the tax period, not the filing date:

• The return for December 2025, filed by 14 January 2026, is in leva.
• The return for January 2026, filed by 14 February 2026, is in euro.

The same applies to the sales and purchase ledgers and to VIES declarations.

The tricky cases

Invoices issued in 2025, paid in 2026. The invoice stays in leva; the payment is made in euro at the fixed rate. Small rounding differences need to be booked consistently.

Credit and debit notes in 2026 for 2025 invoices. The changeover rules set out how these are issued. Check each case, so the correction matches the original invoice and the VAT return.

Advance payments. An advance received in 2025 and invoiced in leva, with the final invoice in 2026, needs careful handling of the deduction in the final invoice.

Foreign currency transactions. Invoices in other currencies are still converted for VAT purposes, now into euro instead of leva.

Ledgers and accounting

Accounting systems need a clear cut-off: closing balances in leva at 31 December 2025, converted at the fixed rate into opening balances in euro on 1 January 2026. A documented conversion makes the first euro VAT return, and later the SAF-T file, much easier to reconcile.

A short checklist

1. Update invoicing software and templates before 1 January.
2. Agree how rounding differences are booked.
3. Close 2025 in leva and convert opening balances.
4. File the December 2025 return in leva and the January 2026 return in euro.
5. Review credit notes and advances that straddle the changeover.

How we can help

We review your invoicing and ledgers for the changeover, prepare the transition-month VAT returns and resolve the cases that do not fit neatly into either currency. VAT compliance