Bulgarian VAT Guide: When Do You Need VAT Registration?

To know when you need VAT registration in Bulgaria, you check whether your activity hits a mandatory trigger—like crossing the domestic turnover threshold, making certain cross-border supplies, importing low-value goods, or opting in voluntarily—then you register for the right scheme (domestic VAT, OSS, or IOSS) and start filing returns in 2026.

Bulgarian VAT Registration Explained for Foreign Founders

VAT in Bulgaria follows EU rules, with local administration by the National Revenue Agency. If you operate a Bulgarian company—or a foreign company trading in Bulgaria—you must register when a legal trigger applies. Common triggers are crossing the local turnover threshold, supplying digital services to EU consumers, distance selling goods into other EU countries, or importing low-value parcels.

If you’re just estimating your overall tax picture, you may also want the step-by-step method to calculate corporate tax and a refresher on Bulgaria’s corporate tax rate. VAT sits alongside these—not instead of them.

When You Must Register for VAT—Triggers at a Glance

Trigger	Typical Use Case	Registration Outcome	Evidence You Need	What to Watch
Domestic turnover threshold	Bulgarian EOOD selling services to local customers	Mandatory domestic VAT	Invoices, ledgers proving turnover	Track rolling 12-month periods
EU B2C digital services	Apps, SaaS, streaming to EU consumers	Union OSS registration	Customer location evidence (two non-conflicting proofs)	Charge the customer’s country VAT rate
EU distance sales of goods	E-commerce shipping from BG to EU consumers	Union OSS (for multiple countries)	Shipping docs, order logs	Local rates across EU destinations
Imports ≤ 150 EUR parcel value	Direct-to-consumer micro-imports	IOSS (optional but simpler)	Customs data, IOSS number usage	One-stop monthly return on imports
Voluntary registration	Agency with input VAT on costs	Domestic VAT by choice	Supplier invoices, contracts	Cash-flow impact vs input VAT recovery

The EU Rules Behind Bulgarian VAT

Bulgaria’s VAT rules align with EU law and the EU VAT Directive, which defines the overall framework of place-of-supply, rates, and special schemes. For official EU-level guidance and cross-border examples, see the European Commission’s VAT guidance and the legal base in the EU VAT Directive.

Which VAT Scheme Do You Need? (Domestic, Union OSS, IOSS)

Choose the scheme that matches your customers and your logistics. Getting this right prevents double registrations and mismatched rates.

Choosing a VAT Route—Schemes Compared

Scheme	When It Applies	How You Charge VAT	Returns & Where Filed	Ideal For
Domestic VAT (Bulgaria)	Local activity or threshold hit	Bulgarian VAT rate	Monthly/quarterly in Bulgaria	Local services, domestic sales
Union OSS	EU B2C services & distance sales	Customer’s country VAT rate	Quarterly OSS return via Bulgaria	Cross-border e-commerce, SaaS
IOSS	Imports ≤ 150 EUR to EU consumers	VAT collected at checkout	Monthly IOSS return via Bulgaria	Micro-imports D2C brands

How to Decide—Practical Scenarios

Use these simple patterns to map your path quickly.

Scenario Matrix—Do You Need VAT Registration?

Your Model	Customers	Goods/Services	Likely Registration	Notes
Solo consultant (EOOD)	Bulgarian companies	Services	Domestic VAT when threshold is exceeded (or voluntary)	Keep eye on rolling turnover
Micro-SaaS	EU consumers	Digital services	Union OSS	Apply destination VAT rates
Shopify store in Sofia	EU consumers	Physical goods	Union OSS (for distance sales)	Mind returns and rate tables
Dropship imports	EU consumers	Low-value goods	IOSS	Collect VAT at checkout
Agency with EU B2B clients	EU companies (VAT-registered)	Services	Reverse charge (no VAT on invoice)	Collect valid VAT IDs

How VAT Interacts with Corporate Tax and Founder Pay

VAT never reduces your corporate tax directly. It changes cash flow, not the profit formula. For the profit calculation and what you pay the state as a company, see how to calculate corporate tax. For a refresher on the flat rate itself, revisit Bulgaria’s corporate tax rate explained. If you’re designing a borderless solo setup, check a digital-nomad-friendly tax strategy that actually matches your client geography.

Invoicing, Evidence, and Refunds—What Auditors Expect

The golden rule: collect two consistent proofs of customer location for EU B2C digital services (e.g., billing country and IP), preserve shipping proof for goods, and reconcile bank receipts to invoices. That’s how you survive audits and qualify for VAT refunds on time.

Audit-Ready VAT Evidence (What to Keep)

Supply Type	Key Evidence	Why It Matters	Founder Tip
B2C digital services (EU)	Two location proofs, invoice logs	Correct destination VAT rate	Automate country-rate mapping
Distance sales of goods	Shipping & delivery proof	Treatment & refunds	Pair orders with courier IDs
Domestic services	Invoices, contracts	Input VAT deduction	Match payments monthly
Reverse-charge B2B	Customer VAT ID validation	Zero-rating on invoice	Store VIES screenshots

Registration Steps, Timelines, and Documents

Most registrations run smoothly if your books already reflect real activity (invoices, contracts, bank statements). Your accountant can file online on your behalf.

VAT Registration—Process and Timing

Step	You Provide	We File	Typical Time	Common Pitfall
1) Pre-check	Business model & client map	Scheme selection (Domestic/OSS/IOSS)	Same day	Wrong scheme for sales mix
2) Evidence pack	Contracts, invoices, bank proof	Online application	1–3 days	Thin evidence slows approval
3) VAT number issued	—	Confirmation & activation	Same day to a few days	Delays if data mismatches
4) First return	Sales & input VAT ledgers	Return submission	Monthly/quarterly	Late filings risk penalties

Address, Bank Account, Remote Setup—What VAT Filers Need

You need a reachable registered address for notices and a bank account that integrates well with your bookkeeping. Many founders do everything remotely with a Power of Attorney and then keep monthly filings on autopilot. If you prefer a one-partner approach from incorporation to VAT, we provide fast, secure and tax-optimized company registration in Bulgaria.

Operational Setup—VAT-Relevant Basics

Item	Why VAT Cares	What Good Looks Like	Founder Tip
Registered address	Official contact & audits	Active mail handling	Use a provider, not a friend’s flat
Bank account	Receipts & refund flows	EUR account with feeds	Automate bank reconciliation
Accounting	Accurate returns & refunds	Monthly closed books	Delegate to a VAT-savvy team

How to Charge and Record VAT—Simple Numbers

Here’s a clean example showing the mechanics for a domestic sale and an EU B2C OSS sale.

VAT Calculation—Illustrative Examples (EUR)

Scenario	Net Price	VAT Rate	VAT Charged	Gross Collected	Where You Report
Domestic service (BG customer)	1,000	Local BG rate	e.g., 200	1,200	Domestic VAT return
EU B2C digital (OSS)	1,000	Customer country rate	e.g., 230	1,230	Union OSS return

Compliance Calendar in 2026—Rhythm That Works

Consistency beats heroics. Close your books monthly, validate VAT IDs for B2B, and keep separate ledgers for domestic, EU OSS, and IOSS if you use more than one scheme.

VAT & Tax Rhythm—Founder-Friendly Calendar

Cadence	Task	Why	How to Stay On Track
Monthly	Domestic VAT returns & ledgers	Avoid penalties, smooth cash flow	Automate bank/imports, reconcile
Quarterly	Union OSS return (if applicable)	Single filing for multiple EU states	Tag sales by customer country
Monthly	IOSS return (if applicable)	Fast customs clearance & VAT pass-through	Capture IOSS number in orders
Year-end	Financials & corporate tax	Profit tax is separate from VAT	Coordinate with your accountant

Costs and Return on Effort

Registration and ongoing filings are cost-effective for most founders—especially when input VAT on software, advertising, and logistics is significant. For broader budgeting beyond VAT, see the cost to set up a company in Bulgaria, review reasons Bulgaria is a strong company formation base, and follow the six-step company registration path. If you want a done-for-you monthly service, our accounting services in Bulgaria keep you compliant while you focus on sales.

Typical VAT-Related Budget (EUR)

Line Item	Typical Cost	What You Get	Founder Tip
VAT registration (domestic/OSS/IOSS)	~250–450	Application, evidence, activation	Prepare contracts & model summary
Monthly domestic VAT return	~60–120	Books, return, submission	Close books monthly
Quarterly Union OSS return	~80–150	Consolidated EU filing	Map rates by country
Monthly IOSS return	~80–150	Import VAT one-stop filing	Capture IOSS at checkout

Common VAT Mistakes—and How to Avoid Them

Most VAT issues trace back to two things: not knowing where your customer is for VAT purposes, and mixing VAT with revenue. Fix both and most of the pain disappears.

Founder Pitfalls—Fast Fixes

Mistake	Why It’s Costly	Prevention
Treating VAT as income	Inflates turnover and profit	Separate VAT in books & reports
Wrong scheme choice	Double registration & fines	Map model → scheme before filing
No location evidence (B2C)	Wrong VAT rate applied	Collect two non-conflicting proofs
Late filings	Penalties & blocked refunds	Calendar monthly closes
Ignoring imports workflow	Delays at customs	Use IOSS for low-value parcels

Talk to a VAT-Savvy Team—Free 30-Minute Call

Tell us your product, customer map, and sales channels. We’ll set up the right scheme (Domestic/OSS/IOSS), automate evidence collection, and keep filings clean in 2026. Book your free 30-minute consultation and ship with confidence.

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