Why Register an E-Commerce Business in Bulgaria

Bulgaria’s combination of 10% corporate tax, low operating costs, and EU membership makes it an ideal base for e-commerce businesses serving European and global markets. Fast internet infrastructure, affordable skilled labor, and access to the EU single market add to the appeal for foreign online entrepreneurs.

Legal Structure for Online Businesses

Most e-commerce businesses in Bulgaria register as an EOOD (single-member LLC). This provides:

• Limited liability — personal assets are protected
• Low minimum capital — just BGN 2
• Simple management — one owner, one manager (can be the same person)
• Full EU company status — enabling cross-border trade within the single market

Registration Process

1. Choose a company name and check availability in the Trade Register
2. Define business activities — include e-commerce, online retail, and related services
3. Prepare incorporation documents — articles of association, manager’s consent declaration
4. Open a bank account and deposit initial capital
5. Register with the Trade Register — processing takes 1–3 business days
6. Register a domain name for your online store
7. Set up payment processing — payment gateway, merchant account

Mandatory Legal Requirements for Online Stores

Bulgarian and EU law impose specific requirements on e-commerce websites:

General Terms and Conditions

Your online store must publish Terms and Conditions that include:

• Company identification (name, EIK number, registered address)
• Description of products or services offered
• Pricing information including taxes and delivery costs
• Payment methods accepted
• Delivery terms and timelines
• Right of withdrawal (14-day cooling-off period for consumers)
• Complaint handling procedure

Consumer Protection

The Consumer Protection Act requires:

• 14-day withdrawal right — consumers can return products without giving a reason
• Clear pricing — all prices must include VAT and any additional charges
• Pre-contractual information — detailed product descriptions before purchase
• Order confirmation — electronic confirmation of each order
• Warranty — minimum 2-year legal guarantee on consumer goods

GDPR Compliance

As an EU-based business, your online store must comply with GDPR:

• Privacy policy published on the website
• Cookie consent mechanism for non-essential cookies
• Data processing agreements with third-party service providers
• Records of processing activities maintained internally
• Data protection officer appointment if processing data at scale

VAT for E-Commerce

VAT rules for online businesses have specific considerations:

• Domestic sales: standard 20% VAT rate once registered
• EU cross-border sales to consumers: One-Stop Shop (OSS) scheme simplifies VAT reporting
• Sales outside the EU: generally zero-rated (VAT-exempt exports)
• Digital services: special place-of-supply rules apply — VAT is charged where the customer is located

Mandatory VAT registration applies when taxable turnover exceeds BGN 100,000 in 12 months. Voluntary registration is possible at any time.

Practical Considerations

Payment Processing

Bulgarian e-commerce companies can access major payment providers:

• Stripe, PayPal, and other international processors
• Local Bulgarian payment gateways
• Bank card processing through Bulgarian banks

Logistics and Fulfillment

• Domestic shipping through Bulgarian couriers (Speedy, Econt) at competitive rates
• EU shipping via international carriers
• Fulfillment centers in Bulgaria offer warehousing and order processing

Accounting

E-commerce businesses must maintain standard Bulgarian accounting records plus:

• Records of all online transactions
• VAT documentation for cross-border sales
• Payment processor reconciliation

Professional Assistance in Troyan

Setting up a legally compliant e-commerce business involves company registration, consumer law compliance, GDPR requirements, and tax planning. Attorney Biser Dimov in Troyan helps foreign entrepreneurs register their online businesses and establish proper legal frameworks. Contact us to start your Bulgarian e-commerce venture.