From October 1st, the circle of businesses and freelancers required to submit monthly VAT returns is expanding, as new categories of taxpayers are being included in this regime. This represents the second phase of implementing the measure, which primarily aims to enhance transparency and reduce tax evasion.
The first implementation, which began on July 1st, 2025, covered 92,590 businesses and freelancers that started operations from January 1st, 2024 through March 31st, 2025. Now it’s the turn of businesses that maintain single-entry bookkeeping and started their activities up to December 31st, 2023. According to the decision by the Independent Authority for Public Revenue (IAPR), the inclusion of these businesses in monthly VAT return submissions will initially be optional.
Monthly VAT submission will eventually become mandatory for everyone
In the future, the measure will become mandatory for all businesses and freelancers, fundamentally changing how VAT is remitted – a tax that constitutes the primary source of revenue for the state budget. As the IAPR emphasizes, the gradual transition to monthly returns is expected to improve tax collection and provide the state with the ability to monitor real economic activity more closely.
It should be noted that the first “group” of taxpayers included in the new regime consisted of businesses established within 2024 and up to the first quarter of 2025. Regardless of whether they maintain single-entry or double-entry books, they are required to file monthly VAT returns instead of the previous quarterly system. However, after 24 months from the start of their operations, they can return to quarterly filing if they wish. Monthly VAT returns are characterized as one of the most effective tools of the Tax Administration, as they provide an immediate picture of business inflows and outflows, reduce the risk of delays and debt accumulation, while contributing to faster detection of irregularities.
