Business type guide · 2026

Bulgarian company for dropshipping stores

Dropshipping is thin-margin, high-volume and almost entirely cross-border, which makes VAT handling more important than the corporate rate. A Bulgarian EOOD gives you an EU VAT number, an EU-registered merchant of record for Stripe and PayPal, and a 10% rate on whatever margin survives ad spend.

Reviewed 9 August 2026Checked against 2026 Bulgarian rates7 min read

Corporate tax: 10% flat
Dividends: 5% withholding
Setup: Remote, 3-7 business days

Why it fits dropshipping stores

An EU entity with a valid VAT number lets you reclaim input VAT and register for One Stop Shop rather than filing in every customer country.
Payment processors and ad platforms treat an EU company with a real registered address and bank account as lower risk than a personal account or an offshore shell.
Advertising, software, sample orders and fulfilment fees are all deductible against the 10% base.
Profit that stays in the company for reinvestment into ad spend is taxed once at 10% with no distribution layer until you pay yourself.

VAT

Goods shipped from outside the EU under €150 fall under IOSS: you charge the destination country's VAT at checkout and remit it through a single Bulgarian IOSS return. Goods already inside the EU and shipped B2C cross-border fall under the Union One Stop Shop once you pass the €10,000 pan-EU threshold. Getting this wrong shows up as parcels held at customs and chargebacks, not as a tax notice.

Substance and residency

Store operations, supplier relationships and ad account management are mobile by nature, so the question is where you personally sit. If you still live in a high-tax country, expect the profit to be attributed there under place-of-management or CFC rules regardless of where the store is registered.

Paying yourself

Most store owners run lean for the first year and reinvest, then take dividends at 5% once the margin stabilises. A small management salary keeps the social contribution base and health cover in place.

What it costs

Formation from €890 one-off, then roughly €120-220 a month once VAT and OSS returns are running at volume.

Full pricing

Mistakes dropshipping stores make

Ignoring IOSS and letting customers get billed VAT plus a handling fee on delivery, which destroys the refund rate.
Treating supplier invoices from outside the EU as if no import VAT arises.
Mixing personal and company payment accounts, which makes the bookkeeping unreconcilable and endangers the processor account.

Frequently asked

Do I need Bulgarian VAT registration from day one?

Not automatically, but most dropshipping stores register voluntarily on day one because they need the number for IOSS or OSS and to reclaim input VAT on ads.

Will Stripe accept a Bulgarian EOOD?

Yes. Bulgaria is a supported Stripe country and a registered EOOD with a Bulgarian or EU business account is a standard onboarding case.

What tax do I pay on store profit?

10% corporate tax on profit after ad spend and fulfilment costs, plus 5% if and when you distribute a dividend.

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