Today we’ll explain how OSS (One Stop Shop) quarterly reporting works for Bulgarian companies selling goods or digital services across the EU. 💼
What is OSS?
OSS (One Stop Shop) is a special VAT scheme that allows Bulgarian companies to declare and pay VAT on all cross-border B2C sales within the EU through a single return submitted online in Bulgaria. Instead of registering for VAT in every EU Member State where you have customers, you can file one consolidated return via the National Revenue Agency (NRA) portal, allowing you to:
- reduce administrative costs;
- eliminate the need for multiple VAT registrations;
- manage all EU VAT obligations from one central point.
Who can use the OSS scheme?
The OSS scheme is applicable to Bulgarian companies that:
- Bulgarian companies selling goods to private consumers (B2C) in other EU countries;
- Businesses providing digital services, telecommunications, broadcasting, or electronic services to EU consumers;
- You must be VAT-registered in Bulgaria to apply for OSS.
How the quarterly reporting works?
OSS returns are submitted every quarter — by the end of the month following the reporting period (for example, for Q1 you report and pay by 30 April). The return includes:
- All cross-border B2C sales, grouped by customer country and applicable VAT rate;
- You must use the VAT rates of the customer’s country, not the Bulgarian rate.
What is included in the OSS report?
Each OSS return includes total sales per EU country, applicable VAT rate for each country, VAT amount due for each country and any credit notes or corrections for previous quarters.
Payment and record keeping
After the return is submitted:
- The VAT amount due is paid to the Bulgarian NRA, which then distributes the tax to each relevant EU country;
- Payments must be made in euro;
- You must keep detailed records of all OSS transactions for at least 10 years — invoices, customer location evidence, and any VAT rate proofs.
It is mandatory to retain all records related to OSS sales for a minimum of 10 years, including invoices, evidence of the customer’s location, and the VAT rates applied to the transactions.
What’s not included in the OSS return?
The following transactions are not reported under OSS:
- Domestic Bulgarian sales;
- B2B transactions where the buyer is VAT-registered in another EU country (those go in your regular VAT return);
- Non-EU sales — these are outside the scope of OSS.
Key compliance tips
To avoid tax risks:
- Always double-check customer location evidence — at least two independent pieces are required;
- Make sure your e-commerce or invoicing system applies the correct VAT rates automatically;
- Keep your OSS and Bulgarian VAT reports consistent — discrepancies often trigger audits;
- Always monitor for inconsistencies, as they often trigger tax audits.
How T8G Consulting Can Support You?
The T8G Consulting team provides professional assistance with OSS registration, preparation and submission of quarterly returns, correct VAT calculation by country, technical integration of VAT rates into e-commerce systems, and communication with the Bulgarian NRA and EU tax authorities.
Contact us if you are looking for accuracy, security, and full tax compliance in your cross-border sales. For more useful and insightful content, visit our partners’ channel!