What are the requirements for registering an online store as a company?

In Bulgaria, anyone who carries out commercial activity, including through an online store, must register as a merchant in the commercial register within 7 days from the moment of making the first sale, according to Art. 6, para. 2 of the Commercial Register Act (ZTR). If this is not fulfilled within the time limit, the person is subject to a fine of 500 to 1000 BGN for each month in which he has not fulfilled his obligation (Art. 40, para. 1 of the ZPA). An e-shop is defined as an internet site through which the sale of goods or services is carried out by concluding a distance contract and which has functionalities for selecting goods, entering information about the buyer and choosing a payment method (para. 1, item 87 of the Value Added Tax Act - VAT).

Do I always have to issue an invoice and a receipt for sales through my online store?

You do not have to always issue an invoice and a receipt for each sale. According to Art. 3, para. 1 of Ordinance H-18, every person is obliged to register and account for sales of goods or services by issuing a fiscal receipt, except when payment is made by postal money transfer, credit transfer, direct debit or available money transfer made through a licensed postal operator. In these cases, the postal money transfer receipt issued by the courier can replace the cash receipt. For other types of payments, such as payment in cash or by non-cash payments by credit or debit card, the issuance of a fiscal cash receipt or a system voucher is required (Art. 118 of the GDPR).

How are sales documented and reported through an online store with a standardized audit file?

The standardized audit file (SAF-T) can replace the paper fiscal note if electronic cash receipts are used, according to Chapter Seven “a” of Ordinance H-18. The software for sales management in a retail outlet, included in the list under Art. 118, para. 16 of the GDPR, must meet the requirements of Annex No. 29 of the Ordinance. Every trader using such software is required to file annually by January 31 a standardized audit file with the National Revenue Agency (NRA) containing information on all sales recorded in the software for the period. The file shall be submitted on a technical medium to the competent territorial directorate of the NRA (Art. 52a, para. 5 of Ordinance N-18). This facilitates accountability and ensures transparency of sales made.

Accounting of an online store in Bulgaria

The preparation of the accounting of an online store in Bulgaria is essential for the successful management of the business. As experts in the field, Elan Consulting offers comprehensive professional accounting services for online stores, including company registration, VAT and taxation. We work not only in Sofia, but also in Burgas, Pomorie, Karnobat, Sunny Beach, Aytos, Nessebar, Sozopol, Primorsko and throughout Bulgaria to meet all your needs.

Customers often ask questions such as “Do I need an online store company?”, “How is an e-store accounting done?” and “What is the cost of accounting for an online store?”. Our services cover all these aspects, striving to provide the best service at competitive prices. For those who are interested in “registration of an online store in the NRA” and “tax treatment of an online store”, our specialists are available to provide competent assistance and advice.

One of the most common questions is “How are sales documented and reported through an online store?”, which is a key element for any business. We help our customers understand documentation and reporting processes, including “cash on delivery online sales accounting” and “online store cost” management. With proper documentation and reporting, your online business will be in compliance with all legal requirements and function efficiently.

Opening an online store requires serious planning and preparation. Questions like “What is the cost of an online store?” and “What are the prices for an accountant online?” are essential for future entrepreneurs. Our experts will provide you with complete information on all aspects, including costs of opening and maintaining an online store, so that you can make an informed decision.

With the correct registration of a company and online store, as well as with the correct tax treatment, your business will be prepared for success. Whether you are interested in tax advice or need an online store management company, Elan Consulting is here to help. Our services also include assistance in documenting and reporting sales through an online store, as well as accounting for online sales with cash on delivery.

Come to us to get professional accounting services for your online store and make sure that your business complies with all legal requirements and best practices in the field. We are here to support your success!

Do I need to have a company for my online store?

To run an online store in Bulgaria, the question of whether you should have a company is essential. Commercial law defines a trader as any natural or legal person who carries out commercial transactions by profession. In this sense, if you intend to run an online store, it is advisable to register a company.

According to Art. 1, para. 1, item 1 of the Commercial Law, a merchant is a person who buys goods or other items with the aim of reselling them in their original, processed or processed form. This means that activities related to online trading fall within the scope of commercial activity and, accordingly, require registration of a company.

In the event that you are an individual and decide not to register a company, you should bear in mind that according to Art. 2, para. 1, item 2 of the Commercial Law, craftsmen and persons performing services with personal labor or exercising a freelance profession are not considered traders, unless their activity is defined as an enterprise within the meaning of Art. 1, para.. 3. Therefore, if your online store carries out activities on such a scale that it requires management in a commercial way, or it involves the sale of goods or items that were purchased precisely for the purpose of resale, and not personal belongings, the registration of a company is inevitable.

If you run an online store without having a registered company, this can lead to serious penalties and legal consequences. According to Art. 6, para. 2 of the Commercial Register Act (ZTR), every trader is obliged to register as a sole trader in the commercial register within 7 days from the moment of making the first sale.If this requirement is not met within the deadline, the person is subject to a fine of BGN 500 to BGN 1000 for each month in which he has not fulfilled his obligation (Art. 40, para. 1 of the ZPA).

Electronic commerce, according to paragraph 1, item 87 of the Law on Value Added Tax (VAT), is defined as an Internet site through which the sale of goods or services is carried out by concluding a distance contract under Art. 45 of the Consumer Protection Act and which has built-in functionality for selecting, including and excluding goods or services in a consumer basket, for input information about the buyer, the delivery address and the choice of payment method. This means that before starting a commercial activity on the Internet, it is mandatory to have a registered operator, most often in the form of an e-commerce company.

According to Ordinance No. 18 of the Ministry of Finance, all online merchants are required to submit a special form to the NRA, which includes information about the trader, the category of goods or services being sold and the platform on which the e-commerce will be carried out. Failure to comply with these requirements may result in penalties and fines, and fines for violations of the requirements of the NRA can vary and reach up to several thousand leva.

When do I need to register my online store for VAT?

The registration of an online store under VAT in Bulgaria is mandatory under certain conditions and turnover, which must be observed in order to avoid penalties and problems with the tax authorities.

One of the main hypotheses for the occurrence of a VAT registration obligation is the attainment of a taxable turnover of BGN 100,000 (until December 31, 2024). or BGN 166 000 from January 1, 2025 onwards. According to Art. 96 (1) of the VAT Code, every taxable person who is established in the territory of the country and has a taxable turnover reaching these thresholds must submit an application for VAT registration within 7 days from the expiration of the tax period during which this turnover was reached. Important! This threshold is always applicable, regardless of whether the online store sells in or outside Bulgaria.

The taxable turnover includes the amount of the tax bases of taxable supplies made by the person, including zero-rate taxable supplies, supplies of financial services under Article 46 and supplies of insurance services under Art. 47 (Art. 96, para. 2). Advance payments received on these supplies are also included, with the exception of advance payments received before the occurrence of the tax event under Art. 51, para. 1 (Art. 96, para. 4).

In addition to the turnover requirements, VAT registration is also required for intra-Community supplies (VOD) and intra-Community acquisitions (VOD). According to Art. 99, para. 1, any taxable person who is not registered under Art. 96, 97, Art. 100, para. 1 and Art. 102 and carries out intra-Community acquisitions of goods must register under this law. The obligation arises when the total value of taxable intra-Community acquisitions for the current calendar year exceeds BGN 20,000 (Art. 99, para. 2).

When selling goods in the European Union (EU) or purchasing services from third parties, such as ads from platforms such as Google or Facebook, VAT registration is also required. Art. 97a, para. 1 states that any taxable person who receives services with a place of performance in the territory of the country and for which the tax is chargeable to the recipient must register for VAT. This also includes services that are taxable and for which the tax is chargeable under Art. 82 para. 2.

For persons carrying out intra-Community supplies of goods, VAT registration is necessary for the correct calculation and accounting of the tax. According to Article 97, paragraph 1, any person established in another Member State who is not established in the territory of the country and carries out taxable supplies of goods that are installed or installed in the territory of the country must submit an application for registration no later than 7 days before the date of occurrence of the tax event.