August is a month when many companies and self-employed individuals prepare and file important tax declarations. Although it is the height of the summer holiday season, the deadlines set by the National Revenue Agency (NRA) do not rest. That is why in this article we will remind you of the most important obligations expiring in August 2026 and offer practical advice on how to avoid fines and interest. If you want to be sure that nothing will be missed, our accounting firm in Sofia and Varna can take over your entire accounting service – from filing declarations to optimizing your tax burden.
Why August is a critical month for tax obligations?
In August 2026, several deadlines overlap: filing monthly VAT returns under the Value Added Tax Act for July, paying social security contributions and personal income tax, as well as advance corporate tax payments. A mistake or delay can lead to penalties ranging from BGN 500 to BGN 3,000 for an unfiled declaration, plus interest. That is why it is important to have a clear schedule and, if necessary, to take advantage of professional help.
Key deadlines in the tax calendar for August 2026
1. VAT return and payment for July (by August 14)
By August 14 (Friday), you must file the monthly VAT return for July 2026. The tax due must be paid within the same deadline. If you are VAT-registered, the obligation applies regardless of whether you have tax to pay – the return is always filed. For companies with a quarterly tax period, the deadline is also August 14, but it covers the April–June period (those companies have already filed their return in July, so in August this applies only to monthly filers).
Important: Since 2025, the NRA has introduced automated data exchange with banks, which means discrepancies between declared and actually paid amounts are detected faster. Therefore, it is advisable to reconcile your data in advance.
2. Social security contributions and income tax (by August 25)
By August 25 (Tuesday), you must:
- Pay the social security contributions for July 2026 for all employees, as well as for self-employed persons (unless they have opted for quarterly payments).
- File and pay the personal income tax for July, withheld from employment remuneration.
- Self-employed persons who pay advance health and social security contributions must also pay the amounts due for July.
If you manage a company with staff, it is extremely important to prepare correct payroll slips and meet the deadlines. Our payroll and social security service includes full calculation, filing of declarations and payment control, saving you time and errors.
3. Advance corporate tax payments (by August 15)
Companies that pay advance corporate tax on a monthly basis must pay the installment for July by August 15. If you have opted for quarterly advance payments, the deadline is October 15, but for monthly payers August is crucial. Remember that the amount of the installment is determined based on the profit from the previous year, but it can be adjusted if circumstances change.
4. Declaration of tax on expenses (by August 31)
By the end of the month (August 31, Monday), you must file the annual tax declaration under Art. 92 of the Corporate Income Tax Act for expenses related to vehicles, representation expenses and others, if they were not included in the annual tax return for 2025. This deadline is often missed, but it is essential for companies that incur such expenses. If you are not sure whether it applies to you, contact us for tax advisory in Bulgaria.
How to optimize your tax obligations in August?
Check opportunities for tax relief and reductions
August is a good time to make an interim assessment of your annual tax position. For example, if you have investments in equipment or research and development activities, you may be eligible for tax relief. Also, if you are VAT-registered and have overdue receivables, you may request an adjustment of the tax base. Our experts can help you identify all legal opportunities to reduce your tax burden.
Plan advance payments wisely
If your profit in 2026 is significantly lower than in 2025, you can reduce your advance payments. This requires filing a corrective declaration with the NRA. Conversely, if profit is growing, higher advance payments will save you interest at the end of the year. This is a complex process that requires accurate forecasts – which is why it is a good idea to consult us.
Don’t forget self-employed persons
If you are a self-employed person (for example, a freelancer or owner of a sole proprietorship), you must pay your contributions in August…
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