E-commerce in Bulgaria: Setting Up Your EU Operation

Why Bulgaria is on every EU e-commerce shortlist

• 10% corporate tax vs 25%+ across Western Europe
• EU single market access with the same VAT/OSS regime
• Low fulfilment costs — warehousing in Sofia is ~40% cheaper than Germany
• Schengen entry from March 2024 simplifies cross-border logistics
• Strong fibre + payment-processor coverage

Step 1 — Choose the legal form

An EOOD (single-shareholder) is standard for solo founders. Capital BGN 2, liability shielded, 100% foreign ownership allowed.

Step 2 — VAT, OSS and IOSS

• VAT registration: mandatory above BGN 100,000 turnover (~EUR 51,130) in 12 months, voluntary from day one for B2B EU sellers
• OSS (One-Stop Shop): file once in Bulgaria, declare distance B2C sales across all EU countries
• IOSS: collect EU VAT at checkout on imports under EUR 150; clear customs without VAT delays
• VIES: mandatory for B2B intra-EU services and zero-rated supplies

Step 3 — Payment processing

Most Bulgarian e-commerce founders use:

• Stripe Bulgaria — fully available since 2021; standard rates
• Mollie — strong EU coverage including iDEAL, Bancontact
• Adyen — for higher volume
• myPOS — Bulgarian PSP, useful for local cards and BGN settlement

Open a Bulgarian IBAN to receive settlement; many founders pair Stripe → Wise Business → Bulgarian bank.

Step 4 — Fulfilment options

Model	Pros	Cons
Self-warehouse in Sofia/Plovdiv	Lowest cost, full control	Operational overhead
3PL Bulgaria (Speedy, Econt, ELP)	EU-wide delivery in 2-5 days	Margin to 3PL
Amazon FBA EU	Built-in reach	FBA fees, less control
Hybrid (Bulgaria + DE/PL FBA)	Speed for DE/AT/CH	More complex VAT

Step 5 — Distance selling thresholds

The pan-EU EUR 10,000 threshold still applies. Above it, you must charge the destination-country VAT rate via OSS. Below, you can charge Bulgarian VAT (20%).

Step 6 — Returns, warranties, consumer rights

EU 14-day right of withdrawal applies regardless of seller country. Bulgarian consumer law also requires Bulgarian-language terms if selling to Bulgarian consumers. For pan-EU stores, publish T&Cs in English + local language for major markets.

Tax outcome — illustrative

EUR 500,000 revenue, 30% gross margin, 60% OPEX of margin:

• Gross profit: EUR 150,000
• OPEX: EUR 90,000
• Pre-tax profit: EUR 60,000
• CIT 10%: EUR 6,000
• Net dividend after 5% WHT: EUR 51,300

The same profit in Germany would leave roughly EUR 35,000.

Bottom line

A Bulgarian EOOD with OSS/IOSS, Stripe, and a 3PL is a complete EU e-commerce stack at the lowest legal tax cost inside the union.