This is for e-commerce and Amazon/marketplace sellers who need to get company location, VAT and inventory-driven registrations right before scaling.
The right setup follows the flow of goods, not just the country where a company is incorporated. An ecommerce seller needs to map where stock is stored, where customers are based, whether sales are B2B or B2C, who is importer of record, and whether a marketplace is treated as the deemed supplier. VAT often becomes the operational issue before corporate tax does.
Where we stand
Ecommerce VAT is inventory-driven and country-specific. This guide sets out the framework so you know what to check — a marketplace-aware VAT adviser should confirm registrations before you store stock or sell.
What is the right tax setup for an e-commerce seller?
The right setup follows the flow of goods, not just the country where a company is incorporated. An ecommerce seller needs to map where stock is stored, where customers are based, whether sales are B2B or B2C, who is importer of record, and whether a marketplace is treated as the deemed supplier. VAT often becomes the operational issue before corporate tax does.
Start with your fulfilment model
| Model | Key tax question | Typical VAT consequence |
|---|---|---|
| Ship from Bulgaria to Bulgarian customer | Domestic sale | Bulgarian VAT if registered. |
| Ship from Bulgaria to EU consumer | Cross-border B2C distance sale | Destination VAT may apply; OSS may simplify filing. |
| Amazon FBA stock only in Bulgaria | Stock location and domestic sales | Bulgarian registration may be relevant; monitor cross-border sales. |
| Amazon FBA stock in Germany, France, Italy etc. | Stock held in another member state | Local VAT registrations normally required before stock is stored. |
| Imported goods sold under €150 | Importer/deemed-supplier rules | IOSS or marketplace rules may be relevant. |
The Bulgarian VAT starting point
A Bulgarian-established taxable person normally has to register for Bulgarian VAT after annual taxable turnover exceeds €51,130, with a short application deadline after the threshold is crossed. However, ecommerce founders should not wait for that figure without checking special triggers, including foreign services, intra-EU transactions and stock movements.
The €10,000 EU distance-selling threshold
For certain cross-border B2C sales of goods and digital services within the EU, the EU-wide threshold is €10,000 per calendar year. Above it, VAT is normally due in the customer country. Union OSS lets an eligible EU seller submit one quarterly return in its member state of identification rather than register for every customer country. This does not cover inventory held abroad.
What Amazon sellers often miss
| Issue | Why it matters | Action |
|---|---|---|
| Pan-EU FBA stock transfers | Amazon may move stock between countries | Register and report in every country where stock is held, unless a clear exception applies. |
| Marketplace deemed-supplier rules | Platform can be treated as seller for some transactions | Identify which sales the marketplace reports and which remain yours. |
| Settlement reports | Fees, refunds and VAT are not shown like normal invoices | Reconcile marketplace reports monthly. |
| Imports | Customs value and importer of record affect VAT/duty | Set an import model before goods first enter the EU. |
| Returns and refunds | Change VAT and revenue reporting | Keep return data tied to the original transaction. |
Company tax and personal extraction
For a founder genuinely based in Bulgaria, an EOOD or OOD is often used for ecommerce operations. The company generally pays 10% corporate tax on taxable profit. Dividends paid to an individual shareholder generally face 5% Bulgarian withholding after corporate tax. The owner's residence country, management location and any foreign permanent establishment still need review.
A practical compliance calendar
| Task | Typical frequency | What to retain |
|---|---|---|
| Marketplace reconciliation | Monthly | Settlement reports, fees, refunds and inventory movement data. |
| Bulgarian VAT return and payment | Monthly if VAT registered | VAT ledgers, invoices and payment evidence. |
| VIES reporting | Monthly where relevant | EU customer VAT numbers and reverse-charge invoices. |
| OSS return | Quarterly if registered | Customer-country sales and VAT rates. |
| Local foreign VAT returns | Depends on country and registration | Stock reports, local sales and transfer records. |
| Corporate-tax return | Annual | Accounts, deductible costs and inventory records. |
A launch checklist
- Choose the company location based on genuine management and operations.
- Map every planned stock location before enrolling in FBA or a 3PL.
- Confirm importer-of-record and customs arrangements.
- Decide whether Bulgarian VAT, OSS or foreign VAT registrations are needed before the first sale.
- Set up invoice, returns and marketplace reconciliation processes.
- Use a VAT adviser familiar with marketplaces and inventory movement.
Thinking Bulgaria?
Sovereignty Global helps ecommerce founders base a Bulgarian company correctly and get VAT, OSS and foreign registrations right before stock moves — alongside accounting, banking and payroll. Explore Tax Strategy and Bulgaria, or Book a Consultation. Related: when you must register for VAT and tax setup for online business owners.
Sources
- Bulgarian VAT Act; National Revenue Agency guidance.
- European Commission OSS/IOSS materials; EU VAT e-commerce package.
- Marketplace settlement and inventory reports. Confirm country-specific VAT registrations before storing stock or selling.