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OSS Quarterly Reporting Explained for Bulgarian Companies from ASB
Handling VAT obligations across multiple EU countries can be overwhelming for many Bulgarian businesses. The One Stop Shop (OSS) scheme provides a structured and reliable way to report cross-border B2C sales without managing separate VAT registrations in every member state. This guide explains, in clear and practical steps, how OSS quarterly reporting works and what Bulgarian companies should know to stay compliant.
What OSS Actually Is and Why It Matters
The OSS scheme is an EU-wide solution designed to simplify VAT compliance for businesses selling goods or digital services to private consumers in other member states. Instead of filing VAT returns in each country where customers are located, companies can declare all cross-border B2C sales through a single online return submitted to the Bulgarian National Revenue Agency (NRA). The NRA then allocates the collected VAT to the respective EU countries. This centralised structure reduces administrative work and lowers the risk of missing obligations in a foreign jurisdiction.
Who Can Use the OSS Scheme
The scheme is available to Bulgarian businesses that make cross-border B2C sales within the EU. This includes two main groups of companies. The first group consists of businesses selling goods to private individuals located in other EU member states. The second group includes companies offering telecommunications, broadcasting, digital or other electronically supplied services to consumers within the EU. To join the scheme, a business must already be VAT-registered in Bulgaria. Once registered, OSS becomes the mechanism through which all relevant cross-border B2C VAT is declared.
How the Quarterly OSS Reporting Process Works
OSS returns are submitted on a quarterly basis. Each return must be filed by the end of the month following the reporting quarter. For example, sales for the first quarter (January to March) must be reported and paid by 30 April. The return consolidates all eligible cross-border B2C transactions and groups them by the customer’s country of residence. It is important to understand that the VAT rate used must always correspond to the customer’s country, not Bulgaria. The online form requires businesses to list sales values, the applicable VAT rate, and the VAT amount due per country.
What Information Must Be Included in the OSS Return
The OSS return requires specific structured data. Below is a simplified overview:
| Element | Description |
|---|---|
| Total sales per country | All B2C sales to customers in each EU member state. |
| Applicable VAT rate | The VAT rate used for each respective country. |
| VAT amount due | The calculated VAT owed for each country based on sales. |
| Corrections | Adjustments or credit notes affecting previous quarters. |
Each field must reflect accurate data. Inconsistent reporting is one of the most common triggers for additional checks or audits.
Payment Requirements and Record-Keeping Rules
Once the return is submitted, the VAT amount is paid directly to the Bulgarian NRA. The agency distributes the respective amounts to the appropriate EU countries. Payments are always made in euro. Businesses must also maintain detailed records of all OSS-related sales for a minimum of ten years. These records must include invoices, evidence of customer location, applied VAT rates, and any corrections made. The extended retention period reflects the need for traceability and consistency across EU jurisdictions.
What Cannot Be Included in an OSS Return
Some transactions are explicitly excluded from OSS reporting. Domestic Bulgarian sales are not part of the scheme and remain within the standard Bulgarian VAT return. B2B transactions, where the buyer is VAT-registered in another EU country, must also be reported through regular VAT mechanisms. Additionally, non-EU sales fall completely outside the scope of OSS. Understanding these boundaries is important to avoid double reporting or incomplete filings.
Key Compliance Recommendations for Bulgarian Businesses
There are several essential practices that help companies remain compliant. Always verify the customer’s location with at least two independent pieces of evidence. Ensure that your e-commerce or invoicing system applies the correct VAT rates automatically for each EU country. Finally, keep OSS declarations aligned with regular Bulgarian VAT returns. Significant differences between the two often result in additional questions from the authorities.
When used correctly, the OSS scheme simplifies cross-border VAT obligations and helps Bulgarian companies operate confidently across the EU. It reduces administrative effort and supports consistent compliance in a complex tax environment.
Need reliable support with your OSS obligations? Get in touch with ASB Accounting Services Bulgaria. Our team ensures accurate quarterly reports, correct VAT handling and full compliance with EU rules, so you can focus on growing your business with confidence.
This information is provided for general guidance only and does not constitute tax, accounting, or legal advice. Each situation requires individual review.