Capital
Sofia
Currency
Bulgarian lev
Languages
Bulgarian
Population size
6.9M
Average Monthly Salary
€1400
EU
Since 2007
Region
Southeast-Europe
Gift Giving Norms
Gifts reflect respect and hospitality
Major Corporate Gift Days
Christmas, Liberation Day
Customs Complexity
Medium
VAT - Standard Rate
20%
Duty Free Threshold
€150
Ave Duty Rate
3%
1. Employee Swag vs. Gifts
Under Bulgarian law, company-provided swag can be non-taxable if it’s strictly job-related. Otherwise, it might count as a taxable benefit (fringe benefit). The National Revenue Agency (NRA) oversees these classifications.
1.1 Swag for Employees
Work-Related (Generally Non-Taxable)
Uniforms & Essential Tools
If apparel, equipment, or branded items are clearly necessary for an employee’s role, the NRA typically does not treat them as extra income.
Low-Value Perks
Occasionally, small gifts or consumables given for morale (e.g., a coffee mug with a company logo) might remain non-taxable if deemed a de minimis benefit. However, Bulgaria does not have a formal “tax-free gift allowance” like some countries, so consult local advisors for thresholds.
Potentially Taxable Benefits
Non-Work Items
High-value or purely personal items (electronics, personal apparel) may be seen as part of the employee’s wage. Employers could owe social security and income tax contributions on their value.
Frequent Gifting
Repeatedly giving “small gifts” can raise concerns about disguised salary. Documentation of purpose and necessity is key to avoid reclassification as taxable compensation.
1.2 Gifts for Non-Employees (Clients, Partners, Event Attendees)
Tax & Deductibility
If gifts serve a promotional or business purpose, they can usually be deducted as expenses. Lavish or repeated gifts lacking a clear business link might be questioned.
Compliance & Anti-Bribery
Bulgaria continues to strengthen anti-corruption measures. Ensure gifts to public officials or high-value business partners are clearly documented and moderate in value.
1.3 Marketing Swag
Promotional Swag
Branded “swag” intended primarily for advertising (e.g., T-shirts, pens, bottles at trade shows) is often classified under marketing/advertising expenses. Keep records of production and distribution to support.
2. Shipping, Customs & Duties
2.1 Shipping
No Customs Duties
As an EU member, Bulgaria imposes no customs duties on goods coming from other EU countries.
VAT Considerations
If both supplier and recipient are VAT-registered in different EU states, intra-community supply or reverse-charge rules may apply. Consult an accountant to confirm which approach fits.
2.2 Importing
Import Duties & VAT
Goods from non-EU nations may face customs duties if their value exceeds €150, plus 20% VAT on (product value + shipping + duties).
Documentation
Proper commercial invoices and HS codes are essential for faster clearance.
2.3 DDP vs. DAP
Delivered Duty Paid (DDP)
The sender covers import taxes/fees, simplifying the recipient’s experience.
Delivered At Place (DAP)
The recipient handles duties/VAT at arrival, which can cause delivery delays if unexpected.
2.4 With Monday Merch
With our warehouse in Rotterdam (The Netherlands), shipping to Bulgaria is duty-free within the EU. Our swag consultants can clarify any intra-EU VAT obligations or reverse-charge scenarios, ensuring a smooth process.
3. Cultural & Local Etiquette
3.1 Swag customs
Practical & Friendly
Bulgarians often appreciate functional gifts—such as desk accessories, notebooks, or coffee cups—especially if there’s a local or personalized touch (like using the Cyrillic alphabet).
Gift-Giving Occasions
Christmas (Koleda) (Dec 24–25) is the main winter holiday. New Year's is also big for corporate gestures. Some businesses give small tokens on Name Days (celebrations linked to a person’s given name), but this is less common in a corporate context.
4. Sustainability & Local Regulations
4.1 Sustainability & Regulations
EU Environmental Directives
Bulgaria enforces EU packaging and waste regulations, though local compliance can be patchy. Still, offering eco-friendly or minimal packaging resonates with environmentally conscious recipients.
Consumer Protection
Products like electronics or cosmetics may need CE marking and Bulgarian-language labeling if widely distributed to consumers.
5. HR & Employee Relations Considerations
5.1 HR & Employee Relations
Remote Employees
Comply with GDPR when collecting personal addresses for shipments. Obtain explicit consent, and keep data secure.
Onboarding & Retention
Welcome kits with company-branded items typically pose no tax issues if they’re job-related or low in value.
6. Summary and Key Takeaways
6.1 Summary & Takeaways
Employee Items vs. Taxable Benefits
Work-related gear is generally non-taxable.
High-value or personal-use items may trigger wage taxes and social contributions.
B2B Gifting & Marketing
Reasonable gifts tied to business are often deductible; lavish gifts can be red-flagged. Promotional items count as marketing expenses if well-documented.
Shipping & Customs
Within the EU: No customs duties, standard VAT rules apply.
Outside the EU: Duties above €150 + 20% VAT.
Monday Merch Warehouse: Our Dutch location simplifies EU distribution, avoiding customs hurdles.
Cultural Factors
Practical, modest gifts are preferred. Personal touches in Cyrillic may add local appeal. Christmas and New Year's are prime gift periods.
7. Frequently Asked Questions
7.1 Questions & Answers
Must employees pay tax on branded T-shirts?
If it’s clearly work-related with a logo, typically no; personal items might be taxed.
How about gifts to non-employees?
They’re often deductible if for promotion, but very lavish presents may face scrutiny.
Cultural advice?
Bulgarian business culture respects small, thoughtful gestures over extravagant items.
Sources
National Revenue Agency (NRA) – Bulgaria’s tax authority for VAT, income tax, and corporate tax details.
Bulgarian Customs Agency – Info on customs procedures, duties, and import requirements.
Bulgarian Chamber of Commerce and Industry (BCCI) – Guidance on local business practices and compliance.
Disclaimer
This guide is informational only and does not constitute legal or tax advice. Always consult local advisors or official authorities for the most current Bulgarian regulations.
