Selling to Bulgaria 2026 — VAT Rates, Rules & Compliance

This guide covers the Bulgaria-specific rules, rates, and compliance requirements for sellers based outside the EU shipping to Bulgarian customers.

For the underlying EU mechanisms that apply across all member states, see:

• EU Overview — IOSS, OSS & Compliance — general obligations for non-EU sellers
• Selling to EU Consumers (B2C) — IOSS registration, the €150 threshold, charging VAT at checkout
• Selling to EU Businesses (B2B) — reverse charge mechanism and zero-VAT invoicing

VAT Rates in Bulgaria (ДДС)

In Bulgaria, VAT is known as ДДС (Данък върху добавената стойност — Danăk vărhu dobavena stoynost, abbreviated DDS). When you sell to a Bulgarian consumer under the IOSS scheme, you must charge the correct Bulgarian DDS rate at checkout.

Standard Rate: 20%

Applies to the majority of goods and services: electronics, clothing (including children’s clothing), cosmetics, most digital services (SaaS, downloads, streaming), and physical goods not listed below.

Reduced Rate: 9%

Applies to:

• Hotel accommodation and tourist services
• Baby foods and infant formula
• Books (physical and e-books, introduced 2022)
• Newspapers and periodicals
• Some accessibility aids for disabled persons

Most physical goods you are likely to ship — clothing, electronics, homeware, toys — fall under the 20% standard rate.

Your e-commerce platform can handle rate overrides, but you must manually assign products to the correct Bulgarian DDS categories.

Currency: Bulgarian Lev (BGN)

Bulgaria uses the Bulgarian Lev (BGN), not the Euro. The Lev is pegged to the Euro at a fixed rate of 1 EUR = 1.95583 BGN under Bulgaria’s currency board arrangement. Bulgaria is scheduled to adopt the Euro, but as of 2026, the Lev remains the national currency.

In practice this means:

• Your checkout must display prices in BGN for Bulgarian customers, or the Euro equivalent is readily converted
• IOSS returns are filed in EUR; the EUR-to-BGN conversion uses the fixed rate
• Payment processors (Stripe, PayPal) handle BGN automatically

Selling to Bulgarian Consumers (B2C)

No threshold for non-EU sellers

As a seller based outside the EU, there is no threshold for selling to Bulgarian consumers. The EU’s €10,000 threshold applies only to businesses established inside the EU. From your very first sale to a Bulgarian consumer, you must comply with Bulgarian DDS rules.

IOSS vs non-IOSS in Bulgaria

If you sell physical goods under €150 to Bulgarian consumers, registering for IOSS is strongly recommended.

Without IOSS (DAP — Delivered at Place):

1. The parcel is stopped by Bulgarian customs (Агенция „Митници” — Agentsiya Mitnitsi)
2. Bulgarian Post (Български пощи) or a courier contacts the customer to collect 20% DDS
3. The hidden cost: carriers add a customs clearance and handling fee — typically 10–15 BGN (~€5–8)
4. Bulgaria has a growing but price-sensitive e-commerce market; unexpected fees frequently lead to parcel abandonment

IOSS eliminates carrier handling fees because VAT is cleared at the point of sale.

The €3 customs duty (from 1 July 2026)

A flat €3 customs duty per item applies to all parcels under €150 entering the EU from July 2026. Ensure your shipping labels include accurate HS codes and correct product descriptions in English or Bulgarian.

Selling to Bulgarian Businesses (B2B)

For sales to a VAT-registered Bulgarian business, the standard EU B2B rules apply.

1. Validate the DDS number. Bulgarian VAT numbers start with ‘BG’ followed by 9 or 10 digits (e.g., BG123456789 or BG1234567890). Always validate on VIES before zero-rating the invoice.
2. Reverse charge. Do not charge VAT. The Bulgarian business accounts for DDS on their own Bulgarian VAT return.
3. Invoice statement. Your invoice must clearly state “Reverse Charge” or in Bulgarian: “Обратно начисляване” (Obratno nachislyavane).

Key Compliance Requirements for Bulgaria

Invoice retention — 5 years (general)

Business records must generally be retained for 5 years in Bulgaria for tax purposes, though certain accounting records have longer requirements under Bulgarian accounting law.

Invoice requirements

Invoices issued to Bulgarian customers must include your VAT number (if registered), the customer’s address, a unique sequential invoice number, and the DDS rate applied to each line item. Invoices must be issued within 5 days of supply.

Cyrillic script

While Bulgarian uses the Cyrillic alphabet, English-language invoices are generally accepted in international trade. For B2C, your standard invoice format is sufficient. For significant B2B relationships with Bulgarian companies, having your business address and key terms transliterated into the Latin alphabet or Cyrillic is courteous but not legally required for foreign sellers.

E-commerce growth market

Bulgaria is a fast-growing e-commerce market with a young, digitally engaged population. Cross-border purchasing from EU and non-EU sellers is common, and Bulgarian consumers are familiar with IOSS-processed deliveries.

Shipping to Bulgaria: Documentation

• Electronic customs data: ensure your carrier transmits customs data electronically to Bulgarian customs.
• Accurate descriptions: use specific product descriptions with correct HS tariff codes.
• IOSS number: if using IOSS, your IOSS number must be electronically transmitted — writing it on the parcel is not sufficient.

Related Guides

• EU Overview — IOSS, OSS & VAT Rates
• Selling to EU Consumers — IOSS Guide
• Selling to EU Businesses — Reverse Charge
• EU Selling Setup Checklist

Selling from a Specific Country?

The Bulgaria-specific rules above apply to any international seller.

• United Kingdom — Post-Brexit, GB sellers shipping to Bulgaria face standard non-EU customs requirements.
• United States — guide coming soon
• Australia — guide coming soon