OSS VAT for Bulgarian Businesses: A Practical 2025 Guide
Expanding your eCommerce business across the EU is exciting, but VAT compliance can quickly become complicated. To simplify things, the EU introduced the OSS (One Stop Shop – simplified VAT scheme). With OSS, Bulgarian companies can manage all VAT obligations for B2C sales across Europe in just one quarterly return filed through the NRA 😊.
What is OSS?
OSS is a unified VAT reporting system across the EU. Instead of registering for VAT in every member state, you file one return in Bulgaria. The National Revenue Agency then distributes the collected VAT to each country where your customers are based. This saves time, reduces bureaucracy, and ensures compliance.
Who Qualifies?
- Bulgarian VAT-registered companies.
- B2C sales of goods to customers across the EU.
- Digital services such as software, streaming, or e-books 📲.
How It Works in Practice
- Register online for OSS through the NRA portal.
- Track your sales by country and apply the customer’s local VAT rate.
- Submit one OSS return every quarter.
- Pay the total VAT to the NRA, which redistributes it to the EU states.
Example: A Bulgarian eCommerce company sells to clients in Germany, Italy, and France. All sales are reported in a single OSS return in Bulgaria. No separate registrations are required.
Key Rules to Remember
- Single threshold of €10,000 per year for cross-border B2C sales.
- Records must be kept for 10 years and made available on request.
- OSS applies only to EU B2C sales. Imports require IOSS.
Common Mistakes
- ❌ Charging Bulgarian VAT instead of the customer’s country rate.
- ❌ Forgetting the €10,000 threshold.
- ❌ Poor record-keeping and lack of transaction detail.
Best Practices
- Automate VAT calculation in your eCommerce platform.
- Regularly check updates to VAT rates across EU states.
- Work with a professional advisor experienced in OSS compliance.
At T&G Consulting, we help Bulgarian entrepreneurs navigate VAT compliance, register for OSS, and manage quarterly returns. If you plan to grow your eCommerce business across the EU without unnecessary risks, get in touch with us. The right tax strategy can unlock your next level of success.
For more information, you can visit our partner’s channel here!
❗ This content provides general information and does not constitute tax, accounting, or legal advice. Each situation is different and should be reviewed individually.