One Stop Shop (OSS) in Bulgaria: Complete Guide 2026

For many businesses that decide to open a company in Bulgaria, managing VAT on sales to other European Union countries represents one of the most delicate tax aspects. This is particularly relevant for e-commerce activities and the supply of digital services to private consumers residing in other Member States. In such cases, understanding how the One Stop Shop (OSS) in Bulgaria works becomes essential.

The One Stop Shop (OSS) in Bulgaria is a special regime introduced by the European Union to simplify the declaration and payment of VAT due on specific cross-border B2C transactions. Through this mechanism, businesses can centrally declare VAT owed in multiple Member States via the Bulgarian tax administration, avoiding the need to register for VAT separately in each country of destination for transactions covered by the regime.

It is important to clarify that the OSS in Bulgaria does not change the place of taxation: VAT remains due in the country of the final consumer. The regime affects only the reporting and payment mechanism by centralising compliance obligations.

What the One Stop Shop (OSS) in Bulgaria is and when it applies

The OSS in Bulgaria applies exclusively to certain B2C (business-to-consumer) transactions. It does not cover B2B transactions, which follow different VAT rules.

In the Bulgarian context, the relevant regime is the Union OSS, intended for EU-established businesses that choose Bulgaria as their Member State of identification. The OSS in Bulgaria can be used by:

• companies established in Bulgaria selling goods at a distance to consumers in other Member States;
  
• businesses supplying digital or electronic services to private EU customers;
  
• companies established in another EU Member State that choose to register in Bulgaria for OSS purposes.
  

The regime primarily applies to distance sales of goods shipped from Bulgaria to other EU countries. In these cases, VAT must be applied according to the rate in force in the customer’s country, not the Bulgarian rate. The OSS in Bulgaria allows such transactions to be included in a single quarterly return filed in Bulgaria.

Digital services such as subscription software, online courses, digital platforms, applications and downloadable content also fall within its scope. In these cases as well, VAT is due in the consumer’s Member State of residence.

It is essential to underline that the OSS in Bulgaria does not replace Bulgarian domestic VAT registration and does not apply to sales carried out exclusively within Bulgaria.

Read also: Ultimate Beneficial Owner (UBO) in Bulgaria: Identification and Registration

The €10,000 threshold, registration and OSS reporting obligations

For EU-established businesses using the OSS in Bulgaria, a single annual threshold of €10,000 (net of VAT) applies. This threshold covers the total value of distance sales of goods and B2C digital services to other EU Member States combined.

Until this threshold is exceeded, Bulgarian VAT may continue to apply. Once the €10,000 limit is surpassed, the business must apply the VAT rate of the customer’s country and report the transactions through the OSS in Bulgaria. The threshold applies at EU level overall, not per individual Member State.

Businesses may voluntarily opt into the OSS regime even before exceeding the threshold, in order to standardise VAT management from the outset and avoid later adjustments.

Registration for the OSS in Bulgaria is completed electronically via the Bulgarian National Revenue Agency. The regime generally becomes effective from the calendar quarter following the application. Late registration may result in invoicing errors, retroactive corrections and increased compliance risks.

OSS returns must be submitted quarterly, independently from the periodicity of domestic Bulgarian VAT returns. The return is filed in euros, and VAT due is paid in a single amount to the Bulgarian tax authority, which subsequently redistributes it to the relevant Member States.

A frequently overlooked element concerns input VAT incurred in other EU countries: this VAT cannot be deducted through the OSS return and must instead be reclaimed through the EU VAT refund procedure.

Failure to comply with OSS obligations in Bulgaria may result in exclusion from the regime and the requirement to register for VAT locally in each Member State concerned.

Read also: A1 Certificate in Bulgaria: Requirements and procedure

When the One Stop Shop (OSS) in Bulgaria is not sufficient

The OSS in Bulgaria is a simplification tool, but it does not cover every operational scenario.

Local VAT registrations may still be required when a business:

• holds stock in warehouses located in other Member States;
  
• performs domestic sales within another EU country;
  
• operates through marketplaces subject to specific VAT rules;
  
• imports goods from non-EU countries under particular regimes.
  

In these cases, OSS does not eliminate local VAT obligations but operates alongside them. A prior assessment of the business model, logistics structure and sales flows is therefore essential to ensure correct application of the regime.

Managing the OSS in Bulgaria requires coordination between accounting, invoicing systems, threshold monitoring and correct application of VAT rates across Member States. Errors in these areas may result in penalties, adjustments and significant tax risks.

For this reason, professional advice is strongly recommended. Accountancy Bulgaria, tax advisor in Bulgaria, supports businesses in analysing their model, monitoring the €10,000 threshold, registering for OSS, setting up compliant invoicing and managing quarterly declarations. A specialised tax advisor can also assist in coordinating OSS with other VAT obligations, preventing errors and ensuring full compliance with both Bulgarian and EU regulations.