1. Who Is Covered
This guide addresses resident individuals under Art. 4 ZDDFL — natural persons with a permanent address in Bulgaria or with a centre of vital interests in the country, who carry out online sales of goods or services. It covers:
- Sales via Bulgarian platforms (OLX, Bazar.bg).
- International resale and handmade marketplaces (Amazon, eBay, Etsy, Vinted).
- Social commerce (Facebook Marketplace, Instagram Shop, TikTok Shop).
- Own online stores (Shopify, WooCommerce, custom website).
- Dropshipping and print-on-demand services.
Legal entities fall outside this scope — OOD, EOOD, AD and sole traders (ET) are traders by operation of law under Art. 1(2) of the Commerce Act, and the Corporate Income Tax Act applies. Non-resident individuals have their own regime under Art. 5 et seq. ZDDFL.
2. Personal Belongings vs. Trading Activity
The key question for every online sale is whether it amounts to disposal of personal property or already constitutes trading activity carried on "as a trade". The two regimes lead to diametrically opposite tax outcomes.
Non-taxable income (Art. 13(1)(2) ZDDFL)
The law exempts income from the sale or exchange of movable property acquired for personal use. Key features:
- Items were used personally (clothing, electronics, books, furniture, toys).
- There is no intention to profit from resale.
- Non-taxable even with multiple listings — sheer volume does not convert personal disposal into trading (e.g. when relocating).
Exceptions (taxable even though they are personal assets):
- Motor, aircraft and watercraft vehicles sold within one year of acquisition (Art. 13(1)(2)(a) ZDDFL).
- Works of art, antiques and collectibles — taxed under Art. 35 ZDDFL.
- Real estate — separate regime under Art. 13(1)(1) ZDDFL.
Taxable income — trading activity under Art. 1 of the Commerce Act
A person qualifies as a trader by virtue of the nature of the activity, not by registration. If you carry out any of the following "as a trade", you are a trader and, absent registration, you owe tax as a sole trader:
- Purchase of goods for resale in original, processed or modified form.
- Production and sale of own items (handmade jewellery, candles, clothing, print-on-demand).
- Resale of movable property (vintage, antiques, collectibles).
- Commission and agency transactions, transport and freight forwarding.
3. DAC7 — The New Reality from 2024
Directive (EU) 2021/514 (DAC7) is the seventh amendment to the Directive on administrative cooperation in taxation. It has been transposed into Bulgarian law via amendments to the Tax-Insurance Procedure Code and has applied from 1 January 2023, with the first platform reports filed in early 2024 for reporting year 2023.
What platforms report
Digital platform operators (OLX, Amazon, eBay, Etsy, Booking, Airbnb, Vinted, Facebook Marketplace and others) must collect and transmit to the NRA:
- Seller identification — name, address, personal identification number or VAT number, date of birth.
- Total number and total value of transactions per quarter.
- The bank account receiving the payments.
- Fees and commissions withheld by the platform.
Reporting thresholds
A platform reports a specific goods seller where at least one of the following applies for the year:
- More than 30 transactions per year, OR
- Total consideration exceeding EUR 2,000 per year.
For services (rental, transport, handmade services) there is no threshold — every transaction is reported.
The deadline for platforms is 31 January of the following year. The NRA uses this data when preparing the pre-filled annual return.
More details on the NRA DAC7 page.
4. When You Become a Trader Under Art. 1 of the Commerce Act
The Commerce Act does not set a numerical threshold — the qualification is a matter of factual assessment. NRA and Supreme Administrative Court practice rely on the following criteria:
- Regularity — not isolated sales, but recurring transactions over time.
- Profit motive — purchase or production with a view to resale, rather than disposing of personal assets.
- Organisation of the activity — advertising, professional listing photography, storage, systematic record keeping.
- Scale — more than 30 transactions per year is a strong indicator; revenue above EUR 5,000 even stronger.
- Nature of the goods — uniform items, brand-new goods with factory packaging and labels, items outside typical personal use.
Practical benchmark: three or more similar transactions per month combined with purchase-and-mark-up patterns are typically classified by the NRA as trading activity. Where in doubt, we recommend preventive registration as a sole trader or EOOD — subsequent re-classification by the NRA entails interest, fines and potential tax audit under Art. 122 of the Tax-Insurance Procedure Code.
5. Taxation of Trading Activity
Where the activity is trading, income is taxed under Section II, Chapter V of ZDDFL — as income from business as a sole trader. This applies whether or not the individual is formally registered as a sole trader in the Commercial Register (so-called "unregistered sole trader" under Art. 1(3) of the Commerce Act).
Tax rate and base
| Element | Value / rule |
|---|---|
| Tax rate | 15% on taxable income (Art. 48(2) ZDDFL) |
| Tax base | Revenue less recognised expenses under the Corporate Income Tax Act (Art. 26 ZDDFL) |
| Advance tax | Quarterly advance payments — by 30 April, 31 July, 31 October |
| Social security (self-insured) | 27.8% on the insured income (min EUR 550.66 — max EUR 2,111.64 per month for 2026) |
Recognised expenses
When trading, you may deduct all documented costs connected to the activity: cost of goods, shipping, packaging, platform fees and commissions, advertising (Facebook Ads, Google Ads), hosting and domain, accounting services, a business-use share of mobile/internet costs.
Sole trader or EOOD
With higher revenue or with a co-owner or investor in mind, an EOOD is often preferable. The combined effective burden on distributed profit is 15% (10% corporate income tax + 5% dividend tax). See our guides on company formation and freelancer registration.
6. VAT Registration and Cross-Border Sales
Mandatory VAT registration is triggered upon exceeding a threshold of EUR 51,130 (BGN 100,000) in taxable turnover over the last 12 consecutive months (Art. 96(1) VATA). The application must be filed within 7 days of the end of the tax period in which the threshold was reached.
- Voluntary registration — possible before the threshold, useful with VAT-registered EU counterparties and when importing.
- SME scheme — since 2025 the EU allows an exemption for turnover up to EUR 100,000 across the Union; Bulgaria has transposed it with a simplified procedure.
- OSS (One Stop Shop) — mandatory for distance sales to EU consumers above EUR 10,000 per year EU-wide.
- IOSS — for imports of goods from third countries under EUR 150 per consignment.
Practical tip: Amazon FBA or eBay Global Shipping often require VAT registration in the warehouse countries — check the requirements before launching.
See our VAT registration guide for details.
7. Filing the Annual Return — Annex 2
Income from trading as a sole trader is declared in Annex 2 of the annual tax return under Art. 50 ZDDFL. The main steps:
- Aggregate revenue from all platforms — statements from OLX, Amazon Seller Central, eBay, Etsy, PayPal, Revolut Business, bank statements.
- Attach documented expenses — purchase invoices, shipping receipts, platform commission invoices, advertising costs.
- Calculate taxable profit (revenue less expenses).
- Complete the insured income in Annex 5 or the relevant annex for self-insured persons.
- Pay the tax due and social security on time.
Deadlines:
- Filing the annual return — by 30 April of the following year.
- 5% discount for electronic filing and payment by 31 March — capped at EUR 256 (BGN 500) under Art. 53(6) ZDDFL.
- Platforms file their report by 31 January.
Further guidance — the NRA online-sales taxation page.
8. Case Studies
Case 1 — Sale of personal belongings (non-taxable)
Ivan sells about 50 of his own books, his children's used toys and an old piece of furniture on OLX over the year for a total of EUR 1,500. The items were acquired for personal use and the transactions are not "as a trade" — income is exempt under Art. 13(1)(2) ZDDFL. If the platform reports him under DAC7, Ivan corrects the pre-filled annual return and attaches evidence (purchase receipts, photographs of original use).
Case 2 — Resale (taxable)
Maria buys clothing and accessories from AliExpress and resells them via Instagram and Facebook Marketplace. Over the year she generates revenue of EUR 8,000 and costs (purchase price, shipping, ads) of EUR 4,500. The activity is trading → taxable profit EUR 3,500 × 15% = EUR 525 tax. Social security contributions are also due on the chosen insured income.
Case 3 — Handmade production on Etsy
Petar produces handmade silver jewellery and sells it on Etsy for EUR 4,000 per year. Production plus sale is trading activity under Art. 1(1)(1) of the Commerce Act. We recommend registering as a sole trader or EOOD, keeping simplified or double-entry books and registering as a self-insured person.
Case 4 — Mixed activity
Elena sells her old clothes on Vinted (personal belongings) and at the same time buys vintage items at flea markets to resell. The first stream is non-taxable; the second is trading. A clear separation in the records is required — only the trading part goes into Annex 2.
9. Penalties and Statute of Limitations
| Violation | Penalty | Legal basis |
|---|---|---|
| Failure to file the annual return | EUR 256 – 2,556 (BGN 500 – 5,000) | Art. 80(1) ZDDFL |
| Incorrect data in the return | 10 – 15% of the concealed tax | Art. 80a ZDDFL |
| VAT violations | EUR 256 – 2,556 for individuals | VATA, Chapter 26 |
| On tax audit | Tax determined by analogy | Art. 122 TIPC |
Limitation. The general tax limitation period is 5 years from the year in which the income should have been declared (Art. 171 TIPC). With DAC7 data in hand, the NRA may open an audit within this period. The absolute limitation is 10 years.
10. Frequently Asked Questions
Need Help with Online Sales Tax?
The Innovires team assists individuals and entrepreneurs with sole trader registration, VAT compliance, DAC7 reporting and tax optimisation. Contact us for a free initial consultation.