VAT Changes for E-commerce and Online Events

As of January 1, 2026, several major VAT changes are now in effect, with the strongest impact on online businesses, digital services, and cross-border sales within the EU.

If you organize virtual events or provide electronically supplied services

(webinars, online training, digital events, etc.)

The place of supply is now determined by the customer, not the supplier. This means that when your client is in another EU member state, VAT is due in the customer's country.

In practice, this significantly affects B2C sales to individuals in other member states, because they determine where the VAT liability arises.

If you choose the VAT small enterprise scheme (the new EU scheme)

This is an optional regime that can be used instead of OSS (One Stop Shop).

But there is one major consequence: you lose the right to deduct input VAT on all purchases.

Yes, on every cent.

Additionally, two conditions must be met simultaneously:

• total EU turnover up to EUR 100,000
• you must not exceed the national VAT registration threshold in each country where you have sales

Other important changes

• You will be marked with EX status in the system (exempt small enterprise)
• Registration under Art. 97a of the Bulgarian VAT Act will effectively fall away in these cases
• Monthly VIES returns will be replaced by quarterly reports

To terminate registration under Art. 97a(2), it will be necessary to register as a small enterprise in the respective country.

Important clarification: mandatory registration under Art. 96(1) of the Bulgarian VAT Act remains unchanged.

Legal basis: Art. 168zh of the Bulgarian VAT Act

Conclusion

The new regime may look simpler, but in many situations OSS may remain the better option, especially if you have significant costs and want to preserve your input VAT deduction right.

If you run an online business, sell digital services, or organize virtual events in the EU, it is worth assessing carefully which regime is most suitable for your setup.

Sometimes the "easier" regime ends up being more expensive.