Vat One Stop Shop in Bulgaria: Registration, Filing, and Benefits Explained

The VAT One Stop Shop (OSS) simplifies VAT compliance for businesses making cross-border B2C sales across the European Union. VAT OSS in Bulgaria allows eligible companies to report and pay EU VAT through a single quarterly return filed with the Bulgarian tax authority. Introduced on July 1, 2021, the scheme replaced the former distance-selling rules and removed the need for multiple VAT registrations across member states. 

The National Revenue Agency of Bulgaria (NRA) administers the system, covering both Union and Non-Union OSS.

By consolidating VAT reporting into a single return, OSS significantly reduces the administrative burden. Businesses can register in Bulgaria even without a local establishment, provided they meet the eligibility criteria.

This comprehensive guide covers all aspects of VAT OSS in Bulgaria from basic concepts through advanced compliance strategies.

Key Highlights

• Single registration replaces multiple EU VAT numbers: Register once in Bulgaria and report all cross-border B2C sales across 27 EU member states through one quarterly return
• €10,000 EU-wide threshold: Total intra-EU distance sales exceeding €10,000 annually trigger OSS requirement, or businesses can opt in voluntarily below this threshold
• Bulgaria’s 20% standard VAT rate: Understand destination-based taxation requiring application of customer country rates ranging from 17% to 27% across the EU
• 10-year record retention mandatory: Maintain comprehensive transaction records, customer location evidence, and VAT calculations for 10 years from December 31 of the transaction year
• Bilingual portal support: NRA provides an electronic filing system with Bulgarian and English-language interfaces for international businesses

Understanding the VAT OSS Scheme in Bulgaria

The VAT One Stop Shop (OSS) is an EU-wide electronic portal system that simplifies VAT compliance for businesses making cross-border business-to-consumer (B2C) sales within the European Union. Bulgaria participates in this harmonized system through the National Revenue Agency (NRA), allowing companies to register, file returns, and remit VAT for sales across all EU member states through a single portal.

Two OSS Schemes

Bulgaria’s OSS system operates through two distinct schemes:

Union OSS: For EU-established businesses making:

• Cross-border supplies of goods to consumers in other EU member states
• Intra-EU distance sales of goods
• Domestic supplies of services to non-taxable persons in other EU member states

Non-Union OSS: For non-EU businesses making:

• Supplies of telecommunications, broadcasting, and electronically supplied services (TBE services) to EU consumers
• Does NOT cover physical goods

Key Advantage

Instead of registering for VAT in every EU country where you have customers, OSS allows you to register once in Bulgaria and report all cross-border B2C sales through a single quarterly return.

What Is the VAT OSS Scheme?

The VAT One Stop Shop (OSS) is a special EU-wide compliance mechanism that simplifies cross-border VAT obligations, effective July 1, 2021, as part of the EU’s e-commerce VAT package. It replaced the previous complex distance-selling threshold system that created a significant administrative burden for businesses.

After OSS (Post-July 2021)

The system now provides:

• Single EU-wide threshold of €10,000 for all intra-EU distance sales combined
• One registration in a single member state, like Bulgaria
• One quarterly return covering all cross-border B2C sales
• One payment to the registration country, which distributes VAT to consumption countries
• Cooperation with one tax authority in one language

Union vs. Non-Union OSS

Union OSS applies to EU-established businesses and covers:

• Intra-EU distance sales of goods (shipping goods from one EU country to consumers in another)
• Cross-border services to consumers in other EU member states
• Distance sales of imported goods valued ≤€150

Example: A Bulgarian online retailer shipping cosmetics from Sofia to consumers in Germany, France, and Poland uses Union OSS to report all sales in a single quarterly return.

Non-Union OSS applies to non-EU businesses and covers only:

• Telecommunications, broadcasting, and electronic services (TBE services) to EU consumers
• Does NOT cover physical goods

Example: A Canadian software company providing streaming services to consumers across the EU uses Non-Union OSS to handle all EU VAT obligations without any EU establishment.

OSS does not cover business-to-business (B2B) transactions, which use the reverse charge mechanism instead.

Who Must Register for VAT OSS in Bulgaria?

OSS registration is optional but beneficial for eligible businesses. There is no mandatory registration unless a business chooses to use the scheme.

Union OSS – Who Can Register

Bulgarian-Established Businesses:

Must register in Bulgaria if making:

• Cross-border distance sales of goods to consumers in other EU member states
• Supplies of services to consumers in other EU member states
• Distance sales of goods imported from third countries (≤€150 value)

Bulgarian businesses cannot choose another member state for Union OSS registration.

Other EU Businesses:

Can register for Union OSS in Bulgaria if they prefer, though they typically register in their establishment country.

Eligibility Criteria:

• Must be VAT-registered or VAT-identifiable in at least one EU member state
• Only one Union OSS registration is allowed across the entire EU
• Cannot use Union OSS for sales in your establishment country (use domestic VAT)

Non-Union OSS – Who Can Register

Non-EU Businesses:

Can register if supplying:

• Telecommunications services to EU consumers
• Broadcasting services to EU consumers
• Electronically supplied services to EU consumers

Eligibility Criteria:

• No EU establishment required
• Can register in any EU member state
• Only one Non-Union OSS registration allowed
• Must not be required to register for VAT in any EU country for other reasons

When Registration Makes Sense

Bulgarian businesses exceeding the €10,000 threshold for intra-EU distance sales must either:

• Register for OSS, or
• Obtain separate VAT registrations in each destination country

Below this threshold, businesses can charge Bulgarian VAT (20%) or voluntarily join OSS for simplified compliance.

Benefits of OSS VAT Registration in Bulgaria

OSS registration offers significant administrative and operational advantages for qualifying businesses.

Single Registration

Register once in Bulgaria instead of in every EU member state, eliminating:

• Multiple VAT registration processes across 27 countries
• Different tax authority relationships and portals
• Varied local requirements and languages
• Ongoing compliance with multiple national rules

Single Quarterly Return

File one consolidated VAT return every quarter covering all cross-border B2C sales, rather than:

• Monthly or quarterly returns in multiple countries
• Different filing deadlines and formats
• Multiple payment procedures and currencies
• Varied reporting requirements

Simplified Payment

Pay all VAT due across the EU in a single payment to the NRA, which then distributes amounts to respective member states. This eliminates:

• Multiple foreign currency payments
• Different payment methods and banking arrangements
• Tracking payments across multiple tax authorities
• Currency conversion complications

No Local Representation Required

OSS registration typically doesn’t require local fiscal representatives or agents in other EU countries, reducing:

• Representative fees and costs
• Administrative coordination burden
• Dependency on third-party compliance partners

Harmonized Rules

OSS applies consistent EU-wide rules and procedures, providing:

• Predictable compliance framework
• Standardized reporting formats
• Clear guidance on applicability
• Reduced risk of local interpretation variations

How to Register for OSS VAT in Bulgaria

Registration for OSS in Bulgaria is completed through the National Revenue Agency’s electronic portal. The process differs for Union OSS and Non-Union OSS.

Union OSS Registration Steps

Step 1: Ensure VAT Registration

Bulgarian-established businesses must first hold a valid Bulgarian VAT registration before applying for OSS. If not yet VAT-registered, complete standard VAT registration through NRA first.

Step 2: Access NRA Online Portal

Navigate to nap.bg and log in using:

• Electronic authentication credentials
• Digital signature, or
• Other approved authentication methods

Step 3: Locate OSS Registration Section

Within the portal:

• Navigate to the VAT section
• Locate the OSS (Еднопосочна схема) registration application area

Step 4: Complete Registration Application

Provide required information:

• Business identification details (name, VAT number, registration number)
• Contact information (email, phone)
• Description of business activities eligible for OSS
• List of EU member states where supplies are expected
• Bank account details for potential refunds
• Declaration confirming eligibility and understanding of obligations

Step 5: Submit Application

Submit the electronic application through the NRA portal. For Bulgarian-established businesses already in the NRA system, no physical documents are typically required.

Step 6: Await Confirmation

• NRA reviews the application and verifies eligibility
• Upon approval, NRA assigns OSS VAT identification number
• Confirmation sent through the portal and email

Effective Date: Registration takes effect on the first day of the calendar quarter following approval. Cannot be backdated to previous quarters.

Non-Union OSS Registration Steps

Step 1: Access NRA Portal

Navigate to NRA’s dedicated portal interface for Non-Union OSS, which provides English-language support.

Step 2: Create Account

Establish user credentials:

• Provide email address
• Create a secure password following NRA requirements

Step 3: Complete Registration Form

Provide business details:

• Legal business name and registration information from the home country
• Business address outside the EU
• Contact person details
• Email address for official communications
• Description of TBE services provided
• Declaration of non-EU establishment status

Step 4: Submit Application

Submit the electronic application. NRA may request additional documentation to verify non-EU status and business legitimacy.

Step 5: Receive Confirmation

Upon approval, NRA provides:

• Non-Union OSS identification number
• Portal access credentials for filing returns

Important Registration Notes

Single Registration Rule:

• Only ONE OSS registration allowed across the entire EU
• If already registered elsewhere, must deregister before registering in Bulgaria

Establishment Requirements:

• Bulgarian businesses must register in Bulgaria
• Cannot choose another member state

Procedure for VAT OSS Filing in Bulgaria

OSS returns are filed quarterly through the NRA’s electronic portal with specific deadlines and requirements.

Filing Deadlines

Returns must be submitted by the last day of the month following quarter end:

• Q1 (Jan-Mar): Due by April 30
• Q2 (Apr-Jun): Due by July 31
• Q3 (Jul-Sep): Due by October 31
• Q4 (Oct-Dec): Due by January 31 (following year)

Filing Process

Step 1: Gather Sales Data

Compile for the quarter:

• All cross-border B2C sales by the destination member state
• Sales values in euros (convert using ECB rates if necessary)
• Applicable VAT rates by country and product/service
• Any credits, returns, or adjustments

Step 2: Access NRA OSS Portal

Log in to the NRA electronic portal using your OSS credentials.

Step 3: Complete Quarterly Return

For each EU member state where supplies were made:

• Enter total net sales value (excluding VAT)
• Select applicable VAT rate(s) for that country
• The system calculates VAT due
• Report separately for different rate categories if applicable

Step 4: Include Corrections

If necessary:

• Report corrections from previous quarters
• Indicate whether the adjustment increases or decreases VAT

Step 5: Review and Submit

• Verify all data for accuracy
• Check calculated VAT amounts
• Review summary by the member state
• Submit an electronic return

Step 6: Payment

• Payment of the total VAT due must be made to NRA by the same deadline
• Payment details and reference numbers are provided in the portal
• Ensures proper allocation to destination countries

Zero Returns

Must file returns showing zero sales if no eligible supplies in the quarter. Failure to file even zero returns can result in penalties and may jeopardize registration status.

Currency

All amounts reported in euros (EUR). Non-Euro sales must be converted using ECB reference rates applicable on the date of supply.

How VAT Rates Work Under the OSS System

Under OSS, sellers must apply the VAT rate of the customer’s member state based on the destination principle, not the seller’s establishment country rate.

Determining Customer Location

Establish customer location using evidence such as:

• Billing address
• IP address
• Bank account location
• Mobile country code
• Other commercially relevant information

EU law requires a minimum of two pieces of non-contradictory evidence.

Applying Destination Country Rates

Each EU member state sets its own VAT rates within EU minimums:

• Standard rate: minimum 15% (actual rates vary from 17% to 27%)
• Reduced rates: minimum 5% for specific goods/services
• Super-reduced and zero rates for limited categories

Sample VAT Rates Across the EU

The table below highlights standard and reduced VAT rates across selected EU member states to illustrate the range of VAT rates businesses must apply when reporting OSS sales.

Record-Keeping Requirements Under OSS

Businesses using OSS in Bulgaria must maintain comprehensive records to support VAT compliance and withstand audits.

Retention Period

EU law requires OSS-related records to be kept for 10 years from December 31 of the transaction year. This standardized retention period applies uniformly across all EU member states for OSS documentation.

Records to Maintain

Transaction Documentation:

• Invoices or equivalent documents
• Sales values, dates, and descriptions
• Product/service classifications

Customer Information:

• Names and addresses
• Evidence of customer location
• Location proof: minimum two pieces (billing address, IP address, bank details, mobile country code)

Compliance Documentation:

• Quarterly OSS returns submitted
• Payment confirmations to NRA
• VAT rate justifications and calculations by member state
• Credit notes, refunds, and adjustments
• Currency conversion records using ECB exchange rates

Format and Accessibility

Records must be:

• Stored electronically or in paper format
• Readily accessible for Bulgarian and other EU tax authorities
• Retrievable within reasonable timeframes upon request

Electronic storage, including cloud-based systems, is acceptable provided documents can be accessed promptly.

Common Issues When Using the OSS VAT System

Businesses frequently encounter challenges when implementing and maintaining OSS compliance in Bulgaria.

Incorrect VAT Rate Selection

Applying the wrong member state or rate category due to a misidentified customer location, outdated rates, or misclassification.
Fix: Use automated rate tools, verify location with multiple data points, maintain updated EU rate databases, and review rate changes quarterly.

Incomplete or Inaccurate Filings

Missing transactions, underreporting, or calculation errors caused by poor data extraction or currency conversion issues.
Fix: Automate sales data capture, reconcile OSS returns with accounting records, apply ECB exchange rates, and correct errors promptly.

Misunderstanding Union vs. Non-Union OSS

Using the wrong scheme or reporting ineligible supplies, such as B2B or domestic sales.
Fix: Union OSS covers goods and services; Non-Union OSS applies only to TBE services. B2B supplies use reverse charge, and domestic sales belong in local VAT returns.

Late Submission or Payment

Missed quarterly deadlines due to weak internal tracking, cash flow constraints, or technical issues.
Fix: Set internal deadlines 5–7 days early, enable automated reminders, prepare returns early, and file even if figures require later correction.

Customer Location Determination

Difficulty confirming the location where indicators conflict, or customers use VPNs.
Fix: Collect multiple location indicators, apply consistent presumptions, and document the decision process.

Returns, Refunds, and Credit Notes

Uncertainty over timing and allocation of OSS adjustments.
Fix: Report adjustments in the quarter the credit note is issued, reduce VAT by country and rate, allow negative amounts where needed, and retain detailed supporting records.

Deregistering or Updating OSS Registration in Bulgaria

Businesses must properly manage registration changes to maintain compliance with Bulgarian and EU requirements.

When Deregistration Is Required

Mandatory Deregistration:

• Cease all activities eligible for OSS reporting
• No longer meet eligibility criteria (e.g., EU business becoming non-EU established)
• Registering for OSS in a different member state (must deregister in Bulgaria first)
• Business cessation or liquidation

Optional Deregistration:

• Decide to use multiple local VAT registrations instead of OSS
• Reduce cross-border sales below thresholds, making OSS unnecessary
• Strategic business decision to change compliance approach

Deregistration Process

Step 1: Determine Effective Date

• Deregistration is effective from the end of the calendar quarter
• Cannot deregister mid-quarter
• Plan timing to avoid compliance gaps

Step 2: File Final Returns

• Submit OSS returns for all quarters up to deregistration
• Include all outstanding corrections or adjustments
• Pay all VAT due before deregistration completes

Step 3: Submit Deregistration Request

Through the NRA portal:

• Access OSS registration management
• Complete the deregistration form
• Specify effective date (end of quarter)
• Provide a reason for deregistration

Step 4: Receive Confirmation

• NRA sends confirmation
• Note the effective deregistration date
• Retain confirmation for records

Step 5: Alternative Arrangements

If continuing cross-border sales:

• Register for VAT in destination member states, or
• Register for OSS in a different member state, or
• Ensure sales fall under reverse charge (B2B only)

Updating OSS Registration

Changes Requiring Notification:

• Legal name changes
• Address changes
• Contact information updates
• Bank account changes for refunds
• Authorized representative changes

Record Retention After Deregistration

The 10-year record retention requirement continues even after deregistration. NRA retains audit rights for historical periods.

Strengthening VAT Compliance Across Markets

Managing OSS compliance alongside traditional VAT obligations across multiple jurisdictions demands systematic processes, accurate data management, and comprehensive documentation. Commenda simplifies these complexities through its AI-powered global compliance platform designed for businesses expanding across borders.

• Automated OSS Reporting: Commenda tracks cross-border sales in real time, applies the correct destination VAT rates, and generates quarterly OSS returns for Bulgaria with complete 10-year audit trails.
• Unified VAT Oversight: All OSS and domestic VAT obligations are managed in one place, removing fragmented country-specific processes and enabling real-time compliance tracking.
• Centralized Documentation: Transaction data, customer location evidence, rate justifications, returns, and payments are securely stored and easily retrievable during audits.
• Up-to-Date VAT Rates: The platform maintains current VAT rates across all 27 EU member states and validates rate application to reduce filing errors.

Discover how Commenda can automate your OSS reporting and reduce compliance burden. Book a free demo today.

Frequently Asked Questions About OSS in Bulgaria

Q. Do I still need local VAT registrations in other EU countries if I join OSS in Bulgaria?

Usually no. OSS replaces local VAT registrations for eligible cross-border B2C supplies. Local VAT numbers may still be required for B2B transactions, domestic sales where you have inventory or an establishment, non-OSS supplies (excise goods, installation services), or input VAT recovery.

Q. What sales cannot be reported through the OSS VAT return in Bulgaria?

OSS does not cover B2B supplies, domestic sales, excise goods, new means of transport, installation or assembly supplies, margin-scheme sales, or VAT-exempt transactions. Only eligible cross-border B2C goods and services can be reported.

Q. How does OSS affect distance-selling thresholds from Bulgaria?

OSS introduced a single EU-wide threshold of €10,000. Above it, businesses must charge destination-country VAT via OSS or local registrations. Below it, Bulgarian VAT (20%) applies unless the business voluntarily opts into OSS.

Q. Can non-EU businesses register for OSS in Bulgaria without an EU establishment?

Yes, but only under Non-Union OSS for TBE services. Non-EU businesses cannot use Union OSS for goods without an EU establishment and must rely on IOSS, intermediaries, or local VAT registrations.

Q. What happens if I file OSS late or miss a payment in Bulgaria?

Late filing or payment triggers penalties and interest from the NRA. Repeated non-compliance may lead to OSS exclusion and mandatory local VAT registrations. Zero returns must still be filed; missed deadlines should be corrected immediately.

Q. How are refunds or credit notes handled in OSS returns?

Adjustments are reported in the quarter the refund or credit note is issued. VAT is reduced by the member state and rate, with negative amounts allowed. Detailed records linking adjustments to original transactions must be retained.

Q. Can I reclaim input VAT through OSS in Bulgaria?

No. OSS only covers output VAT. Input VAT must be reclaimed through local VAT registration or the EU VAT refund procedure. OSS registration alone does not provide input tax recovery rights.