In short: with high margins and non-VAT customers, 4% turnover tax is usually cheapest. If customers need VAT invoices and you're in trade, catering or services, look at 6% simplified VAT. If your costs carry a lot of input VAT, the general regime can win.
| Criterion | Turnover tax | Simplified VAT | General regime |
|---|---|---|---|
| Rate | 4% (sole proprietors 1%) | 6% VAT | 12% VAT + 15% CIT |
| Who | Up to 12,000 BCU | Trade, catering, services | Everyone |
| Input VAT | None | Not credited | Credited |
| Corporate income tax | None | 0% | 15% |
| Filing | Monthly | Monthly | Monthly / quarterly |
How to choose
Answer four questions: what's your margin? Are your customers VAT payers? How much input VAT is in your costs? How fast will turnover grow next year? To answer with real numbers, use our calculator or book a free consultation.