Set up Bulgarian taxes in your Shopify store

This article covers:

• Tax settings
• 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
  • Country-specific registration
• Selling goods outside the EU
• Where to find further information

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 while still letting business customers have VAT deducted at checkout:

1. In your Shopify admin, go to the Settings → Taxes and duties page.
2. In the Global settings section, check the 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.

To activate dynamic tax inclusion:

1. In your Shopify admin, go to Settings → Markets and click the market you want to set up tax collection for.
2. Click Duties and taxes, and in the Storefront and checkout pricing field, click Edit.
3. In the Domestic taxes field, select Dynamic taxes. 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 Global settings section, uncheck the Include sales tax in product price and shipping rate.
3. Click Save to apply the changes.

Optionally, disable the dynamic tax inclusion:

1. In your Shopify admin, go to Settings → Markets and click the market you want to set up tax collection for.
2. Click Duties and taxes, and in the Storefront and checkout pricing field, click Edit.
3. In the Domestic taxes field, select Don't add taxes. 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 accommodation provided by hotels and similar establishments (including vacation accommodation and camping or caravan sites), as well as to books and other printed, electronic publications, and certain baby products.

The zero rate applies to intra-EU supplies of goods to a VAT-registered business (or a non-taxable legal person liable to account for VAT on the acquisition) in another EU Member State, provided the transaction isn't otherwise exempt.

If you're VAT-registered and selling goods to customers in Bulgaria—whether businesses (B2B) or consumers (B2C)—you must charge Bulgarian VAT.

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 can also register voluntarily at any time.

If your business is based in Bulgaria and is VAT-registered, you charge VAT to some customers and not others, depending on where they're located.

If you're selling goods B2B to other EU Member States, these sales are zero-rated for VAT.

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 taxable turnover outside your home country but still within the EU doesn't exceed €10,000 (excluding VAT) during a calendar year, you qualify for the micro-business exemption.

Once you apply for it with your local tax authority, you charge the VAT rate of the country your business is based in.

To use the micro-business taxation scheme, you need to apply for the micro-business exemption with your local tax authority. You'll use just one VAT registration within the EU.

Once you're ready, set up your tax settings in Shopify admin to reflect this. This is a one-time task.

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 Regional settings 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 once you receive it.
6. Save your changes by clicking Collect VAT.

If your combined taxable turnover across all other EU Member States exceeds €10,000 (excluding VAT) during a 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%.

If you exceed the threshold by selling to multiple countries, registering for VAT in each EU Member State can become time-consuming.

In this case, you can use the EU One-Stop Shop (OSS) scheme instead. It still lets you charge VAT at the rate of the country you're selling to, but you only need to file one OSS VAT return.

Shopify lets you set these tax settings for individual VAT registrations, so it can automatically charge the correct VAT to your EU customers.

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 Regional settings 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 once you receive it.
6. Save your changes by clicking Collect VAT.

Now, your customers' shipping country VAT rates automatically apply to all EU sales.

Some businesses choose to keep a separate tax registration for each EU country they ship to.

If that's your situation, you can add a local VAT registration number for that country in Shopify, which lets you charge the correct VAT rate.

Shopify will then automatically apply VAT rates based on your registration.

To add the local VAT registration number:

1. In your Shopify admin, go to the Settings → Taxes and duties page.
2. In the Regional settings section, click European Union.
3. In the Collect VAT in an EU country section, click Collect in another location.
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 once you receive it.
5. Save your changes by clicking Collect VAT.
6. To add a local VAT registration number for every country you're registered in, click Collect VAT in an EU country again and confirm by clicking Collect VAT.

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 section, click the shipping profile you want to add shipping zones to.
3. In the Shipping zones section, click Add shipping zone.
4. Enter a name for the shipping zone, add the country (or countries) you're VAT-registered in using the search bar, and click Done when finished.
5. Add shipping rates to make this 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 VAT on your invoices.

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.