An online store can take orders around the clock. That does not mean its sales, payments and documents organise themselves. A single order leaves records in the store, with the courier, with the payment provider, at the bank and sometimes in a separate inventory system. Accurate accounting depends on being able to connect those records.
That is why the first question in e-commerce is not simply “How many invoices do you have?” How you sell, how you receive money, where your customers and stock are located, and which reports you can provide all matter.
What does accounting for an online store include?
It includes recording sales and purchases, tracking payments, fees, returns and inventory, and meeting the applicable tax and reporting obligations. The exact scope depends on the business model. An independent store delivering only within Bulgaria and a seller using several platforms and warehouses in different countries have different needs.
The practical aim is the same: to explain every difference between what was ordered, delivered, paid and recorded. This also helps owners understand their business, beyond submitting documents at the end of each month.
Start by mapping your sales and payments
Before your first sale, list your sales channels: your own website, Shopify, Amazon, eMAG or another platform. For each channel, establish who the seller is, where the goods are dispatched from, who collects payment and how the money reaches your company.
Tell your accountant before introducing a new payment method, market or overseas warehouse. A setting that takes minutes to change in an administration panel can change the documentation and tax treatment of your transactions.
Why does the payment method matter?
A “paid” label in your store does not explain exactly what happened to the money. Bank transfers, card payments, ordinary cash on delivery and postal money transfers must be distinguished. The actual payment mechanism also affects which documents are required.
For courier payments, check your contract and the specific service used. For card payments, review both the transaction report and the payouts to your bank account. A payment provider subsequently transferring money to your bank does not, by itself, turn the customer's original card payment into a bank transfer.
Must every online store be declared to the NRA?
The assessment depends on the activity and the payment methods accepted. The Bulgarian National Revenue Agency (NRA) links the information-submission obligation to online stores accepting payments that require a fiscal receipt. A separate set of conditions applies to the alternative reporting regime for certain card-not-present payments. The choice of platform alone does not determine whether information must be submitted or what it must contain.
Check this before launch, rather than after orders have accumulated. It is separate from incorporating the company and assessing VAT registration. The NRA's guidance for online traders explains the requirements.
A bank payout is not the same as sales turnover
A platform may transfer a combined amount for many orders after deducting commissions, refunds and other charges. Your bank statement shows the payout received, but does not, on its own, explain all the sales and costs behind it.
Illustrative example: a payment provider's report shows customer payments of EUR 1,000, refunds of EUR 100 and fees of EUR 30. With no other movements, the merchant receives EUR 870. That EUR 870 should not automatically be treated as the value of sales. This example explains cash movements; it does not determine the taxable amount, VAT or when revenue is recognised.
Keep a link between each order number, payment transaction, sales document and any refund. Differences can then be traced instead of explained from memory.
Which documents and reports should you prepare each month?
Your accountant needs complete reports for the period, rather than a screenshot of total turnover. A sensible starting set includes:
- An orders and sales report showing references, dates, amounts, currencies, statuses and customer countries.
- Issued invoices, credit notes and other applicable sales documents, particularly where customers are private individuals.
- Reports of payments, company payouts, deducted fees, chargebacks and refunds.
- Courier reports for delivered, refused and returned parcels and the amounts collected for them.
- Bank statements and reports for every business payment account used.
- Documents for purchases of goods, transport, advertising, software and other expenses.
- Reports of stock movements, inventory balances, returned products and write-offs, where applicable.
- Information about new contracts, markets, warehouses, payment providers or platform changes.
Agree who will obtain each report and in which format. Where your system supports it, use machine-readable files with a consistent structure. Agree the document-submission timetable with your accountant according to the applicable obligations.
What changes when you use Shopify, Amazon or eMAG?
A platform name is not an accounting model. With your own store, orders need to be matched to the payment provider and courier. With marketplace sales, distinguish sales to customers from platform commissions and services, and from the amounts the platform pays out to you.
Also establish who holds your stock. Your own warehouse, an external logistics provider and a platform's storage and fulfilment service may require different reports. Do not assume a platform fulfils all your tax and accounting obligations simply because it calculates or withholds a tax.
Selling abroad: when should you discuss VAT and OSS?
Check before your first international transactions. Relevant factors include where the goods are dispatched from, the customer's location and status, the platform's role and existing registrations.
The One Stop Shop (OSS) is a scheme for declaring and paying VAT on certain supplies to final consumers. It is not a universal replacement for every domestic VAT obligation. For example, domestic sales from a warehouse in another country are not automatically distance sales from Bulgaria. The European Commission's OSS guidance distinguishes these situations.
Foreign advertising and software: check Article 97a
Even before your first sale, buying advertising, software or platform services from an overseas supplier may require a separate VAT assessment. Article 97a(1) of the Bulgarian VAT Act concerns taxable persons receiving taxable services with a place of supply in Bulgaria for which VAT is payable by the recipient under Article 82(2). A small sales volume does not, by itself, remove this obligation.
Before the first payment or service, send your accountant the contract, supplier details and intended use. The accountant should establish whether this registration is required, taking account of your existing VAT status. Where Article 97a applies, the application is generally due no later than seven days before VAT on the relevant supply becomes chargeable, including on an advance payment. Do not wait for the first month-end invoice to make this assessment.
Do not overlook refused orders and returned goods
An order, a dispatched parcel and a completed sale are not the same event. A refused delivery, a partial return and a refund following a complaint must each remain traceable. Deleting an order from the administration panel is not a workable way of documenting the change.
For sales of goods ordered by post or electronically, Article 25(3)(4) of the Bulgarian VAT Act places the tax point on the date the supplier receives payment. This is the specific rule for those supplies, rather than a universal rule for every transaction made online. The actual payment flow and any applicable special rules must still be assessed.
Keep the order, delivery, payment and intermediary-payout dates separately. When a courier or payment provider is involved, establish from the contract and reports when the supplier is treated as having received payment. Revenue recognition is a separate accounting assessment; the VAT tax point should not automatically be used for every accounting purpose.
Three avoidable mistakes
The first is submitting only the bank statement. The second is introducing a new payment method or market without telling the accountant. The third is retaining only totals, with no link to the underlying orders and adjustments. All three make verification harder and can create extra work.
An organised process starts with a simple list: which systems you use, who has access, what is exported and who checks discrepancies. Keep backup copies of reports so the information remains available when you change platforms or cancel a subscription.
Frequently asked questions
Are the store's invoices enough?
Not always. They must be considered alongside the applicable reports for payments, fees, returns and stock. The aim is a complete, traceable picture of the activity.
Can I use more than one payment provider?
Yes, but each provider must be included in your reporting process. Make reports available for all business accounts and providers, even those with few transactions.
Is accounting for an online store more expensive?
The fee depends on the work involved: sales channels, payments, markets, employees, warehouses and data quality. More automation does not always mean less accounting complexity. Our accounting-cost guide explains how this scope is assessed.
Organise the process before your store grows
If you are launching an online store, or your current reports have become difficult to reconcile, tell us which platforms you sell through, how you accept payments and which countries you operate in. At Accounting Bulgaria, we can discuss the document flow and accounting scope that fit your actual business model.
Explore our e-commerce accounting service or send an enquiry through our contact page.
This article provides general information. Specific obligations depend on your activity, contracts and the applicable rules.
Sources
- ЗДДС / Bulgarian VAT Act — чл. 25 и чл. 97а
- НАП / NRA — изисквания към е-търговците
- European Commission — VAT e-commerce explanatory notes
For the full handover list, checks and a worked reconciliation example, use our monthly e-commerce accounting checklist.