Accounting services for dropshipping businesses

Accounting for dropshipping stores

In Bulgaria, dropshipping often grabs significant media attention—and with good reason. It’s a highly successful business model in today’s digital, fast-paced world. While individuals still run many dropshipping operations, an increasing number of our clients are choosing to establish companies for their dropshipping ventures. Beyond VAT advantages, registering a company can serve as a powerful catalyst for your business growth and greatly enhance the credibility of your online accounts. Real-world examples setting a company can lead to a threefold increase in both revenue and profits. You’re not just selling products—you’re building a business and a reputation. And we’re here to support you at every stage: every transaction, every decision, every challenge. It might seem overwhelming at first, but we’re confident that after just one month of working together, you’ll feel equipped and empowered to handle any situation with clarity and confidence.

From the standpoint of security, credibility, and taxes, establishing a company is the most logical step. Our experience with clients using the dropshipping model is extensive—we could talk about it for hours. But what we really want to show you is what you get when you choose our accounting services tailored for dropshipping merchants. Our service is offered as a complete package that gives you everything you need to keep your business running smoothly. We don’t limit our services strictly to companies or individuals—we always provide personalised consultations on the advantages and disadvantages of the dropshipping model, as well as your tax obligations and legal responsibilities. For dropshipping merchants, we offer additional consultations, as Bulgaria’s tax laws don’t fall under a single regulation—they’re wide-ranging and detailed. Here’s what you’ll receive from TSG Accounting as part of our specialised accounting services for dropshipping businesses:

In the dropshipping model, accurately reporting all transactions is essential for proper tax compliance and treatment. Every sale must be declared to the tax authorities through two key channels:

• Monthly VAT Returns – Each month, all sales—whether to individuals or businesses—must be reported based on the nature of the transaction and the customer’s location. This is typically done through a sales ledger or issued invoices.
• Annual Tax Return – Once a year, a comprehensive tax return is filed, detailing all sales, purchases of goods, shipping and logistics expenses, as well as other income and business-related costs.

With the introduction of the new VAT rules on July 1, 2021, dropshipping businesses now have more flexible and streamlined options for selling to individual customers within the EU. These changes are designed to simplify the process of reporting cross-border sales and ensure tax compliance. For sales outside the EU or to non-EU individuals, the existing rules still apply. Here are the main OSS (One Stop Shop) registration options available under the dropshipping model:

• Union OSS Registration – This applies when you sell goods from a warehouse located in Bulgaria or elsewhere in the EU to individual consumers in other EU countries. These sales must be reported quarterly, and VAT must be charged at the rate applicable in the customer’s country of delivery. You’re also required to maintain an electronic register of these sales, which often aligns with the data from your e-commerce platform or website.
• Import OSS (IOSS) Registration – This option is ideal when importing goods worth less than €150 from non-EU countries (such as China, Turkey, Serbia, North Macedonia, etc.). With IOSS registration, you receive a unique identification number that allows your shipments to pass through customs without delays. The customer receives the goods without additional charges at delivery, while you remain responsible for declaring and paying the VAT due on these imports.