11 September 20265 min read
How VAT actually works when a Bulgarian EOOD sells digital products, courses or goods across the EU: the EUR 10,000 threshold, OSS registration, marketplace rules, invoicing and the filing calendar.
Most founders choose Bulgaria for the 10% corporate tax, then discover that VAT is the part that actually shapes their day-to-day admin. This guide covers how VAT works for a Bulgarian EOOD selling into the EU in 2026: when you must register, what OSS does, and what to charge each type of customer.
Answer those three and the VAT treatment follows. Everything below is that grid filled in.
| Trigger | Threshold | Deadline |
|---|---|---|
| Domestic turnover in Bulgaria | BGN 166,000, about EUR 85,000 | Within 7 days of month end |
| Receiving services from abroad (B2B) | EUR 0, from the first invoice | Before the transaction |
| Supplying services to EU businesses | EUR 0, from the first invoice | Before the transaction |
| Intra-EU distance sales to consumers | EUR 10,000 pan-EU | Before exceeding it |
| Voluntary registration | No threshold | Any time |
The critical point that catches new founders: if you sell services to a business in another EU country, or buy services such as advertising, hosting or software from one, you need a Bulgarian VAT number from the first transaction, regardless of turnover. The VAT registration guide covers the application and documents.
Once you hold a VIES-validated Bulgarian VAT number, services to VAT-registered businesses in other EU states are reverse charged. You invoice without VAT, note "reverse charge, Article 196 VAT Directive", and the client accounts for VAT in their own country. You then file a monthly VIES declaration listing those customers alongside your VAT return.
Always validate the customer's number in VIES on the invoice date and keep the confirmation. If the number is invalid, you charge Bulgarian VAT at 20%.
Selling courses, subscriptions, templates, software or memberships to private consumers in other EU countries means VAT is due where the customer lives, at their rate. There is one exemption: while your total cross-border B2C sales stay under EUR 10,000 a year across all EU countries combined, you can charge Bulgarian 20% instead.
Above EUR 10,000 you must charge each customer's national rate: 19% in Germany, 21% in the Netherlands, 25.5% in Finland, 24% in Greece, and so on. Rather than registering in each country, you register for the Union OSS scheme in Bulgaria and file one quarterly return covering all of them. The Bulgarian revenue agency then distributes the money.
Practical notes:
Goods shipped from Bulgaria to consumers in other EU states follow the same EUR 10,000 threshold and the same OSS return. If you hold stock in another member state, for example in an Amazon fulfilment centre, OSS does not cover it and you need a local VAT registration in that country. Amazon FBA sellers using pan-EU fulfilment almost always end up with several registrations plus OSS.
Imports from outside the EU with a consignment value up to EUR 150 can use IOSS. Above that, normal import VAT and customs apply.
Services to business or private customers outside the EU are generally outside the scope of Bulgarian VAT, so you invoice with no VAT and a short note to that effect. Exported goods are zero rated with proof of export. Keep the evidence, because this is the first thing an audit asks for.
Everything is filed electronically. The annual filing calendar sets out the full year, and the accounting services page shows what monthly support costs.
If you sell to EU consumers, VAT is not a cost you can plan away by choosing a jurisdiction: it follows the customer. Bulgaria changes your corporate and dividend tax, not the VAT you charge a German or Dutch buyer. Founders who price gross across the EU should model the highest rates they sell into, not the Bulgarian 20%.
For B2B sellers the picture is easier. Reverse charge means most invoices carry no VAT at all, and the admin is a monthly return plus a VIES list.
Only if a trigger applies. Buying advertising from Google or Meta in Ireland, or selling to any EU business, triggers it immediately, which covers most online businesses in their first month.
Yes, and for a small side business it saves real admin. Track the running total across all EU countries, because you must register before the sale that crosses it, not afterwards.
No. Domestic sales go on your regular Bulgarian VAT return at 20%.
They act as merchant of record and handle EU consumer VAT themselves, so you typically do not need OSS for those sales. You still need a Bulgarian VAT number for the B2B services you buy and sell.
You can deregister once you fall below the thresholds and the mandatory triggers no longer apply, subject to a minimum period and settling any adjustments on assets you claimed VAT on.
Read the VAT registration guide for the application itself, check the formation cost breakdown, then book a free consultation to map your VAT position before you start selling.
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