Set up Bulgarian taxes in your Shopify store

This article covers:

• Tax settings
  • Display product prices including VAT
  • Display product prices excluding VAT
• Tax rates in Bulgaria and the EU
• Selling goods to customers in Bulgaria
  • My business is not VAT registered
  • My business is VAT registered
• Selling goods to customers in other EU Member States
  • Selling as a micro-business
  • Surpassing the micro-business threshold
  • Selling with a country-specific registration
• Selling goods outside the EU
• Where to find further information
• Invoices

If you want to charge VAT to some customers but not others, you have two options, depending on how you would like to display product prices.

You can choose to display product prices with VAT included if you sell primarily to consumers (B2C).

To display your product prices with VAT included:

1. In your Shopify admin, go to the Settings → Taxes and duties page.
2. In the Additional configuration section, turn on Include sales tax in product price and shipping rate.
3. Click Save to apply the changes.

Optionally, you can enable dynamic tax inclusion. This Shopify feature automatically includes or excludes tax based on the customer's region and adjusts the tax rate accordingly.

Tax display is set for each market. To activate dynamic tax inclusion:

1. In your Shopify admin, go to the Markets page and click the market you want to configure.
2. In the Inherited section, click the + icon next to Taxes and duties.
3. Under Tax display, select Dynamic tax display, then click Done.
4. Click Save to apply the changes.

If you sell mainly to businesses (B2B), you'll probably want to display your product prices without VAT.

To display your product prices excluding VAT:

1. In your Shopify admin, go to the Settings → Taxes and duties page.
2. In the Additional configuration section, turn off Include sales tax in product price and shipping rate.
3. Click Save to apply the changes.

To disable dynamic tax inclusion in a market and show VAT as a separate line at checkout:

1. In your Shopify admin, go to the Markets page and click the market you want to configure.
2. In the Inherited section, click the + icon next to Taxes and duties.
3. Under Tax display, select Show as line item, then click Done.
4. Click Save to apply the changes.

Bulgaria applies a standard VAT rate of 20%. This rate applies by default to all goods and services, except those that qualify for the reduced 9% rate or the zero rate.

The reduced rate of 9% applies to hotel and similar accommodation (including vacation accommodation and camping or caravan sites), books and other printed or electronic publications, and baby food and certain baby hygiene products.

The 0% rate applies to supplies of goods to VAT-registered businesses in other EU Member States, as well as to exports outside the EU.

How you handle VAT depends on whether your business is VAT-registered.

If your business isn't VAT-registered, you don't charge VAT. You can't include VAT on your invoices until you register your business for VAT.

Most businesses start out unregistered. As of 2026, once your business's taxable turnover exceeds €51,130 in the current or previous calendar year, you must register for VAT.

You must apply within seven days, and you're considered VAT-registered from the day after you exceed the threshold.

You can also register voluntarily at any time.

If your business is based in Bulgaria and is VAT-registered, you charge Bulgarian VAT on all sales of goods to customers in Bulgaria.

For sales to customers outside Bulgaria, the rules depend on where your customer is located. They're covered in the sections below.

If you're selling goods B2B to other EU Member States, these sales are zero-rated for VAT, as long as your customer has a valid EU VAT number.

This means you still list VAT on your invoices, but at a 0% rate; under the reverse-charge mechanism, the customer accounts for the VAT.

If you're selling goods B2C to other EU Member States, you do charge VAT. The rate depends on whether your combined turnover across all other EU countries exceeds the micro-business threshold.

If your cross-border B2C sales to other EU countries (distance sales of goods plus telecommunications, broadcasting, and electronic services) stay at or below €10,000 (excluding VAT) in both the current and the previous calendar year, you can charge Bulgarian VAT to all your EU B2C customers.

This applies automatically; you don't need to apply for it. It only applies if your business is established only in Bulgaria and your goods are shipped from Bulgaria.

You can also choose to charge the customer's country rate from the first euro, but that choice binds you for two calendar years.

To set VAT rates for the micro-business threshold and charge your home country's VAT rate on all orders:

1. In your Shopify admin, go to the Settings → Taxes and duties page.
2. In the Tax regions section, click European Union.
3. In the Collect VAT cross-border section, click Collect VAT.
4. In the Collect across the EU window, select Collect using your home country registration.
5. Select your Country of registration and enter your VAT number. Leave this field blank if you've applied for a VAT number but don't have one yet. You can update it later.
6. Click Collect VAT to save your changes.

If your combined taxable turnover across all other EU Member States exceeds €10,000 (excluding VAT) in the current or the previous calendar year, you must charge VAT at the rate of each customer's country of residence.

This means you'll charge different VAT rates to customers in different EU countries, ranging from 17% to 27%.

Registering for VAT in every EU Member State you sell to can quickly become time-consuming. The One-Stop Shop (OSS) Union scheme solves this: you still charge VAT at the rate of the country you're selling to, but you only need to file one OSS VAT return in Bulgaria.

To set VAT rates for the OSS scheme and charge your customers' shipping country VAT rate on all orders:

1. In your Shopify admin, go to the Settings → Taxes and duties page.
2. In the Tax regions section, click European Union.
3. In the Collect VAT cross-border section, click Collect VAT.
4. In the Collect across the EU window, select Collect using a One Stop Shop (OSS) registration.
5. Select your Country of OSS registration and enter your VAT number. Leave this field blank if you've applied for a VAT number but don't have one yet. You can update it later.
6. Click Collect VAT to save your changes.

Now your customers' shipping country VAT rate will automatically apply to all EU B2C sales.

You need a local VAT registration in another EU country if you make taxable sales there that OSS doesn't cover, for example, if you store stock in that country and ship to customers from there.

In that case, you can no longer use the €10,000 threshold.

To add a local VAT registration number:

1. In your Shopify admin, go to the Settings → Taxes and duties page.
2. In the Tax regions section, click European Union.
3. In the Collect VAT in an EU country section, click Collect VAT (or Collect in another location if you already have a registration).
4. Select the Registration country and enter your VAT number. Leave this field blank if you've applied for a VAT number but don't have one yet. You can update it later.
5. Click Collect VAT to save your changes.

If you can't select the additional country you're VAT-registered in, you may need to create a shipping zone first.

To create a shipping zone:

1. In your Shopify admin, go to the Settings → Shipping and delivery page.
2. In the Shipping profiles section, click the profile you want to add the zone to (for example, General profile).
3. In the Shipping zones section, click + Zone.
4. Name the zone, add the country (or countries) you're VAT-registered in using the search bar, and click Done.
5. Add shipping rates to make the zone available.
6. Click Save to apply the changes.

If you're selling goods from Bulgaria outside the EU—whether B2B or B2C—these sales are zero-rated. This means you don't charge Bulgarian VAT on your invoices.

For official guidance, see the National Revenue Agency (nra.bg) website. For advice tailored to your specific business situation, consider consulting a tax professional or accountant who specializes in VAT and ecommerce.

Once you've finished setting up your tax rates, Sufio automatically creates and sends valid invoices, including an exact breakdown of the VAT charged.

You can create invoices in multiple languages and feel peace of mind knowing that they include all the information to make them compliant with invoicing legislation in the EU and other key markets.