Bulgaria has clarified how public payments and tax declarations will be handled as the country prepares to adopt the euro, offering detailed guidance to businesses, individuals, and public institutions ahead of the 2026 changeover.
According to the official rules, once the euro is introduced, all payments to the state budget and to municipalities will be made exclusively in the single European currency. This includes taxes, administrative fees, and other public obligations.
The only exception will apply during the one-month dual circulation period following the official changeover. During that limited timeframe, both the Bulgarian lev and the euro will be accepted for public payments.
Authorities stressed that this dual circulation window is intended to ease the transition for citizens and businesses. After it ends, the euro will become the sole legal tender for all such transactions.
Clear rules have also been set out regarding the currency used in tax declarations. The determining factor will be which currency was officially in force at the end of the relevant tax period.
If a tax period ends before the euro becomes Bulgaria’s official currency, declarations must be completed in leva. If the period ends after the changeover, amounts must be declared in euros.
Special attention is given to tax periods that end during the dual circulation phase. For periods ending between January 1 and January 31, 2026, all declarations must be completed in euros, regardless of the submission date.
This requirement applies even if a declaration is filed weeks or months later. Officials say the rule is designed to ensure consistency and avoid confusion in tax administration.
The legal basis for these procedures is Article 50 of the Law on the Introduction of the Euro. It governs not only tax declarations but also social security filings and other documents related to past reporting periods.
Under this framework, all values in declarations must be stated in the official currency valid at the end of the relevant tax or insurance period. This applies uniformly across sectors and types of obligations.
For all future tax periods after January 2026, submissions will naturally be made in euros. By that time, the euro will be the official currency in force, eliminating any ambiguity.
However, the rules become more nuanced for documents issued after the euro changeover that relate to earlier periods. In such cases, figures referring to the past will still be shown in leva.
Despite this, any amounts due for payment or subject to refund will be calculated and indicated in euros. The conversion will use the fixed rate of 1 euro equal to 1.95583 leva.
Officials emphasized that this fixed conversion rate is irrevocable and legally binding. It will be applied uniformly across all institutions to prevent discrepancies or rounding disputes.
Corrective declarations, which amend previously submitted filings, will follow the same logic. They must be completed in the currency that was official at the end of the period being corrected.
This rule applies regardless of when the correction is submitted. Even if a correction is filed years later, the original period’s official currency will determine how values are presented.
Authorities say this approach ensures historical accuracy while maintaining consistency in public records and audits. It also aligns Bulgaria’s procedures with eurozone best practices.
More detailed technical guidance is available in the Accounting Guidelines prepared by the Non-Financial Sector Working Group. This group operates under the Coordination Council for Bulgaria’s preparation for eurozone membership.
The council is led by the Ministry of Economy and Industry and includes representatives from key institutions. Its role is to coordinate practical aspects of the transition across the economy.
Officials encourage businesses, accountants, and taxpayers to familiarize themselves early with the new rules. Early preparation, they say, will help avoid administrative errors and compliance issues.
With less than a year until the planned changeover, the government is stepping up communication efforts. The aim is to ensure a smooth transition to the euro, minimizing disruption for citizens and the economy alike.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members