Bulgaria is one of the smaller EU e-commerce markets by volume, but it's a growing one — and its 20% VAT rate makes the import charge picture more manageable for UK sellers than in many other EU destinations. If you're building out your EU export coverage or receiving occasional orders from Bulgarian customers, here's what you need to know about how the import process works and what your customers will pay.
Bulgaria's VAT rate: 20%
Bulgaria applies a standard VAT rate of 20% to most goods — matching the UK's domestic VAT rate and placing it at the lower end of EU rates. Only Germany (19%), Luxembourg (17%), and Malta (18%) apply lower standard rates among EU member states. For UK sellers, this means Bulgarian customers face a more moderate on-delivery VAT charge than customers in Finland (24%), Sweden (25%), or Hungary (27%).
VAT is charged on the total customs value — product price plus shipping — when the parcel clears Bulgarian customs. For a £75 gift set with £15 shipping, Bulgarian VAT at 20% on £90 comes to £18. Add a handling fee of approximately £6, and the on-delivery charge is around £24 on a £75 purchase. Manageable — but still worth communicating to customers upfront.
Import duty on UK goods
Goods that genuinely originate in the UK qualify for 0% import duty in Bulgaria under the UK-EU Trade and Cooperation Agreement. Bulgaria is an EU member state and applies the same TCA rules as all other EU members. Standard EU duty rates apply to goods that don't meet UK origin requirements — if your goods were manufactured outside the UK and are simply being reshipped, you cannot claim TCA preference.
Bulgaria's currency: the Bulgarian lev (BGN)
Bulgaria uses the Bulgarian lev (BGN) rather than the euro. However, the lev has been pegged to the euro at a fixed rate of approximately 1.96 BGN per euro since 1999. This means the €150 customs threshold converts to a stable BGN equivalent of around 293 BGN. Unlike countries such as the Czech Republic (CZK) or Hungary (HUF) whose exchange rates fluctuate, the BGN/EUR peg makes the Bulgarian threshold predictably equivalent to roughly £130 without meaningful exchange rate risk. Bulgaria is expected to adopt the euro in due course, at which point the threshold will apply directly in euros.
Shipments below the €150 equivalent benefit from simplified customs processing. IOSS-registered sellers or those selling via platforms that handle IOSS (Etsy, Amazon, etc.) can collect VAT at checkout, meaning Bulgarian customers pay nothing on delivery. Above the threshold, 20% VAT is assessed at Bulgarian customs.
A practical example
A UK gift brand ships a gift set worth £75 to a customer in Sofia.
Worked example — gift set to Bulgaria
Product value: £75
Shipping: £15
Total: £90 — below the €150 threshold
If IOSS-covered: VAT collected at checkout, no on-delivery charge
If not IOSS-covered: Bulgarian VAT (20% on £90): £18
Customs handling fee: ~£6
Potential on-delivery charge if not IOSS-covered: ~£24
At 20% VAT, the on-delivery charge for Bulgarian customers is lower than for most EU destinations — comparable to Germany and notably lower than the 24–27% applied in Greece, Finland, Sweden, and Hungary. This makes Bulgaria one of the more accessible EU markets for UK sellers managing the post-Brexit import charge problem. Understanding how these charges compare across markets is part of calculating the full landed cost for each destination.
Bulgaria and the Schengen Area
Bulgaria became a full Schengen Area member in January 2024, joining via its air and sea borders. This has streamlined some border processes for parcels moving by air freight through Schengen transit points. For standard courier shipments from the UK, the practical impact is modest — UK-to-Bulgaria parcel routing has not changed significantly — but it does mean Bulgarian addresses are now part of the Schengen zone for air transit purposes, which can simplify certain logistics arrangements.
Shipping times and customs processing
Standard courier services reach Sofia and major Bulgarian cities in 4–6 working days from the UK. Bulgaria is well served by DHL, DPD, and Speedy (the local carrier with national coverage). Customs processing in Bulgaria can be variable — some shipments above the €150 threshold clear quickly; others take several additional days. Use a fully tracked service to give your customers visibility and to maintain the proof of export records you need for VAT zero-rating purposes.
Is Bulgaria worth targeting as an export market?
Bulgaria's e-commerce market is smaller than Romania or Poland by volume, and average order values are lower than in Western Europe. However, it is growing, competition from other international sellers targeting Bulgarian customers is lower than in major markets, and the 20% VAT rate means the on-delivery charge picture is comparatively favourable. For UK sellers who already export to several EU markets, adding Bulgaria is straightforward — the process is identical to any other EU destination, and the charge dynamics are more manageable than for higher-VAT markets. ClearShip calculates the full charge breakdown for Bulgarian customers in the same way it does for all other EU shipping destinations.