Setting Up a Bulgarian EOOD for E-Commerce, Dropshipping & Amazon FBA (2026)

Bulgaria's 10% corporate income tax makes it one of the most attractive EU bases for e-commerce businesses. Since joining the Eurozone on January 1, 2026, Bulgarian companies operate natively in EUR, have full SEPA access, and can sell across all 27 EU member states without barriers. Whether you are selling on Amazon, running a Shopify store, dropshipping from Asian suppliers, or listing handmade goods on Etsy — a Bulgarian EOOD gives you a legitimate EU company at a fraction of the cost you would pay in Western Europe. As a law firm that registers e-commerce companies every week, here is exactly how it works.

Why Bulgaria for E-Commerce

The structural advantages of Bulgaria for e-commerce are significant and measurable:

• 10% flat corporate income tax (CIT) — the joint-lowest in the EU, unchanged since 2007. After CIT and the 5% dividend tax, the combined effective rate is approximately 15%. Compare that to 30% in Germany, 25% in the Netherlands, or 33% in France.
• Euro and SEPA — Bulgaria adopted the Euro on January 1, 2026. Your company operates in EUR by default, with full access to SEPA payments. No currency conversion fees when receiving from EU customers or paying EU suppliers.
• EU single market access — a Bulgarian EOOD is a standard EU company. You can sell goods and services across all 27 EU member states. Amazon, eBay, Etsy, and Shopify all accept Bulgarian company registrations.
• Low operating costs — accounting services cost EUR 150-400/month for e-commerce, virtual office addresses start at EUR 50/year, and the minimum salary is EUR 620/month. Your overhead is a fraction of what it would be in Western Europe.
• No special license required — selling standard consumer goods online requires no special e-commerce license in Bulgaria. Your EOOD's Founding Act simply needs to include the appropriate NACE codes (e.g., 47.91 for retail sale via mail order or internet).
• EUR 1 minimum capital — you can register an EOOD with just EUR 1 in share capital. There is no minimum capital requirement based on business type or turnover.

Setting Up Your EOOD for E-Commerce

The registration process for an e-commerce EOOD is identical to any other Bulgarian company. There is no separate "e-commerce company" category — you are registering a standard limited liability company that happens to sell online.

The process in brief

1. Choose a company name and verify availability in the Trade Registry.
2. Prepare incorporation documents — Founding Act with NACE codes covering your e-commerce activities, specimen signature declaration (notarized), manager declarations, beneficial ownership declaration.
3. Open a capital accumulation bank account and deposit your share capital (minimum EUR 1).
4. File with the Trade Registry — electronic applications are processed in 1-3 business days.
5. Receive your EIK (tax ID) — your EOOD is automatically registered with the National Revenue Agency (NRA).
6. Open a business bank account — typically takes about one week for KYC processing. Costs range from EUR 100-500 depending on the bank.
7. Obtain a Qualified Electronic Signature (QES) — mandatory for filing tax returns, VAT declarations, OSS returns, and communicating with the NRA electronically.

For a detailed step-by-step walkthrough, see our complete guide on registering a company in Bulgaria as an EU citizen.

Costs

VAT for E-Commerce — The Complete Picture

VAT is the most complex aspect of running an e-commerce business from Bulgaria. The rules differ depending on where your customers are and where your goods are located. Here is a clear breakdown.

Domestic sales (Bulgaria only)

If you sell only to customers within Bulgaria, the standard VAT rules apply. VAT registration is mandatory when your taxable turnover exceeds EUR 51,130 in a calendar year. Below this threshold, you can operate without charging VAT (or register voluntarily if you want to reclaim input VAT on business purchases). The standard Bulgarian VAT rate is 20%.

Cross-border B2C sales to other EU countries (OSS)

When you sell to private consumers (B2C) in other EU countries, the One Stop Shop (OSS) scheme applies. Here is how it works:

• EUR 10,000 threshold — if your total cross-border B2C sales to other EU countries are below EUR 10,000 per calendar year (net of VAT), you can charge Bulgarian VAT rates and treat these as domestic sales. Once you exceed EUR 10,000, you must charge the VAT rate of the customer's country.
• Register for OSS — instead of registering for VAT separately in every EU country where your customers are, you register for OSS once in Bulgaria through the NRA e-services portal. A Qualified Electronic Signature (QES) is required.
• File quarterly — you submit one OSS return per quarter, declaring the VAT collected per destination country. The NRA redistributes the VAT to each member state.
• Charge destination-country rates — you must charge the VAT rate applicable in the customer's country (e.g., 19% for Germany, 21% for the Netherlands, 22% for Italy).

Imports from outside the EU (IOSS)

If you import goods from outside the EU and sell them to EU consumers — typical for dropshipping — the Import One Stop Shop (IOSS) applies to consignments valued at EUR 150 or less:

• Register for IOSS through the NRA portal in Bulgaria.
• Charge VAT at checkout at the destination country's rate — the customer pays the final price including VAT.
• File monthly IOSS returns through the NRA portal.
• Simplified customs clearance — goods with an IOSS number clear customs without the customer paying import VAT on arrival.

For goods above EUR 150, standard customs procedures apply — full customs declaration, applicable customs duties based on tariff classification, and import VAT payable at the point of entry into the EU. IOSS does not cover these shipments.

Selling on Amazon from Bulgaria

A Bulgarian EOOD can register as a seller on all Amazon EU marketplaces — Germany (amazon.de), France (amazon.fr), Italy (amazon.it), Spain (amazon.es), the Netherlands (amazon.nl), Poland (amazon.pl), Sweden (amazon.se), and Belgium (amazon.com.be). With a single Amazon EU Unified Account, you can manage listings across all these marketplaces from one seller dashboard.

What you need to register on Amazon

• Company EIK (9-digit Bulgarian tax identification number)
• VAT number (if VAT-registered — not required for sellers below the domestic threshold, but Amazon may request it for certain marketplaces)
• Corporate bank account or payment processor account for payouts
• Government-issued ID of the company representative
• Proof of business address

Amazon FBA — VAT complications

If you use Amazon FBA (Fulfillment by Amazon), your goods are stored in Amazon's warehouses across Europe. This creates significant VAT implications that OSS alone does not resolve:

• Stock in a country = potential VAT registration obligation. When Amazon stores your inventory in a warehouse in Germany, France, Poland, Czechia, or any other country, that physical presence may trigger a local VAT registration requirement in that country.
• OSS does not cover stock movements. The transfer of your own goods between Amazon warehouses in different EU countries is treated as a "deemed supply" for VAT purposes. OSS only covers B2C distance sales — it does not replace the VAT obligations arising from holding stock abroad.
• Pan-European FBA multiplies registrations. Amazon's Pan-European FBA program distributes your inventory across up to 8 EU countries for faster delivery. This could require VAT registration in all 8 countries.

Safer alternative: Amazon FBM or single-country FBA

If you want to avoid multi-country VAT registrations, consider Fulfillment by Merchant (FBM) — you handle shipping yourself from Bulgaria or a single warehouse location. Alternatively, limit your FBA to a single country (e.g., Germany) and register for VAT only there. You can still sell across all EU marketplaces; only the fulfillment location determines the VAT registration requirement.

Dropshipping from Bulgaria

Dropshipping is a popular e-commerce model where your Bulgarian EOOD takes orders from customers, but a third-party supplier (typically in China, Turkey, or another non-EU country) ships the goods directly to the customer. Here is how it works from a tax and compliance perspective:

The VAT chain

1. Customer places an order on your website or marketplace listing. You charge the product price plus VAT (at the destination country's rate if using IOSS/OSS).
2. Your supplier ships the goods directly from outside the EU to the customer's address within the EU.
3. Your EOOD is the deemed importer. Even though you never physically touch the goods, you are the seller of record and are responsible for VAT and customs compliance.

For goods valued at EUR 150 or less

• Register for IOSS through the Bulgarian NRA.
• Charge destination-country VAT at checkout.
• Provide your IOSS number to the shipping carrier — this ensures the package clears customs without the customer paying import VAT again on delivery.
• File monthly IOSS returns through the NRA portal.
• From July 1, 2026: a EUR 3 customs duty per item applies in addition to VAT.

For goods valued above EUR 150

• IOSS does not apply. Standard import procedures are required.
• A full customs declaration must be filed at the point of entry into the EU.
• Customs duties are calculated based on the product's tariff classification and country of origin.
• Import VAT is payable at the border (typically by the shipping carrier, then invoiced to you or the customer).
• This model is more complex and less predictable for the customer — many dropshippers avoid items above EUR 150 for this reason.

Payment Processing

All major payment processors work with Bulgarian EOODs. Since Bulgaria joined the Eurozone in 2026, payments are processed exclusively in EUR:

Accounting for E-Commerce

E-commerce businesses have higher accounting complexity than typical service companies. The main cost drivers are:

• Transaction volume — each sale, refund, fee, and bank movement must be recorded. An e-commerce business with 200 transactions per month requires significantly more bookkeeping effort than a consultancy with 5 invoices per month.
• VAT registration — adds monthly VAT returns, input VAT tracking, and reverse charge calculations for B2B purchases.
• OSS reporting — adds quarterly cross-border VAT declarations, broken down by destination country and applicable rate.
• IOSS reporting — adds monthly import VAT returns if you are dropshipping or importing goods from outside the EU.
• Multiple payment processors — reconciling Stripe, PayPal, Amazon, and bank account statements creates additional work.
• Multi-currency transactions — even with EUR as base currency, some platforms pay in USD or GBP, requiring exchange rate tracking.

Choose an accountant who has experience with e-commerce businesses specifically. They need to understand marketplace fee structures, payment processor reconciliation, and cross-border VAT reporting. A general accountant who handles only domestic service companies may struggle with the volume and complexity.

For a deeper look at all post-registration costs, see our guide on the annual cost of running an EOOD in Bulgaria.

Frequently Asked Questions

Disclaimer: This article provides general guidance on e-commerce company formation and VAT in Bulgaria based on current legislation as of April 2026. VAT rules for e-commerce are complex and fact-specific — the OSS, IOSS, and FBA VAT implications described here are simplified summaries. For personalized advice on your specific business model, consult a qualified Bulgarian lawyer and VAT specialist. Government fees are denominated in EUR. This article does not constitute legal or tax advice. Last updated: April 8, 2026.