VAT for EU E-Commerce

If you run an ecommerce business in Bulgaria and sell to private customers across the EU, VAT may become more complex than expected. In many cases, it is not enough to look only at the Bulgarian VAT rules. EU cross-border ecommerce rules may also apply.

A key point is that there are two different VAT thresholds to monitor. The first is the Bulgarian VAT registration threshold for businesses established in Bulgaria. The second is the EU-wide threshold of EUR 10,000 for certain cross-border B2C sales within the EU. Once that EU threshold is exceeded, VAT is generally due in the customer’s country rather than in Bulgaria.

One Stop Shop

This is where the One Stop Shop (OSS) can be very useful. OSS allows businesses to report eligible cross-border EU sales through one registration, one return, and one payment in a single Member State, instead of registering separately in multiple countries.

For Bulgarian online sellers, this means it is important to track where customers are located, apply the correct VAT treatment, and keep proper records from the start. If the business imports goods from outside the EU, the Import One Stop Shop (IOSS) may also need to be considered.

A proper structure

The main takeaway is simple: if you sell online across the EU, your VAT setup should be planned early. A proper structure can help avoid compliance issues, corrections, and unnecessary costs as your business grows.

Need help with VAT for your EU online store? Contact Zara Consult for practical guidance on OSS, IOSS, and VAT compliance for Bulgarian ecommerce businesses.