eCommerce is one of the fastest-growing sectors in Europe. New online brands emerge every day, and selling across borders has become easier than ever.
However, behind the fast-paced world of marketing and growth lies a less visible reality – a complex combination of financial, tax, and legal structures that can significantly impact a company’s success.
We speak with Pavlina Petrova, Founder of ZaraConsult – one of the leading consulting firms in Bulgaria specializing in accounting, tax, and corporate services, advising both local and international ecommerce companies operating across Europe. She shares the most common mistakes online businesses make when expanding internationally – and how the right financial and tax structure can save companies tens of thousands of euros.
Many eCommerce companies focus mainly on marketing and sales. At what point do accounting and legal structures become critical?
At the beginning, most eCommerce businesses focus on their product, marketing, and sales. This is completely natural – the initial goal is to validate the idea and reach customers.
The challenge begins when the business starts growing faster and selling in multiple countries.
At that point, questions arise such as:
- Where is VAT due?
- When is OSS registration required?
- Does the business have a taxable presence in another country?
- How should international payments be treated?
At this stage, accounting is no longer just an administrative function. It becomes a strategic tool for managing growth.
What are the most common issues when selling to other EU countries?
One of the most common issues is VAT on cross-border sales within the European Union.
Many ecommerce companies successfully expand into multiple countries but underestimate their VAT obligations.
Once certain thresholds are reached, businesses are required to use the OSS (One Stop Shop) system or register for VAT in specific countries.
These obligations are often identified too late, leading to additional payments, penalties, and administrative burdens.
In our practice, we have seen cases where companies discover these issues months or even years later, resulting in costs of tens of thousands of euros.
When should an ecommerce business start thinking about its international tax structure?
This usually happens earlier than most entrepreneurs expect.
When a company starts using fulfillment centers or warehouses in different countries, it can trigger additional tax obligations.
For example:
- VAT registrations in the respective countries
- local accounting requirements
- compliance with local regulations
Many entrepreneurs are not aware that simply storing goods in another country can create a taxable presence there.
That is why the international structure should be planned early, not after the business has already scaled significantly.
Marketing is one of the largest expenses for eCommerce brands. Where do companies make the most accounting mistakes?
Marketing is often the largest cost for eCommerce companies.
Advertising budgets on platforms such as Meta, Google, and TikTok can reach substantial levels.
However, this is also where many accounting errors occur.
The most common issues include:
- incorrect treatment of invoices from foreign platforms
- improper application of the reverse charge mechanism
- incorrect VAT treatment
- missing or incomplete documentation
These may seem like technical details, but they can lead to significant tax adjustments during audits.
We often see eCommerce companies growing quickly but still facing financial difficulties. Why does this happen?
This is a very common situation.
Sales are increasing, but so are expenses:
- higher marketing budgets
- investments in inventory
- payments to suppliers
- logistics costs
At the same time, incoming payments from platforms or payment providers are often delayed.
Without proper cash flow management, even profitable businesses can experience temporary liquidity issues.
When should an eCommerce business move from basic accounting to a strategic financial partner?
This typically happens when the business starts selling across multiple international markets.
With sales in several countries, different payment systems, marketing platforms, and logistics partners, the financial landscape becomes much more complex.
At that point, accounting is no longer just reporting – it becomes a key part of strategic business management.
Bulgaria is increasingly mentioned as a good base for eCommerce companies. Why is that?
Bulgaria offers a very attractive combination of factors for international eCommerce businesses.
The most important one is the 10% corporate tax rate, one of the lowest in the European Union.
In addition, the country offers:
- a stable tax environment
- access to the entire EU market
- relatively low operating costs
- a well-developed entrepreneurial and IT ecosystem
For these reasons, more and more international entrepreneurs are choosing Bulgaria as a strategic base for their European operations.
What is the role of ZaraConsult in this process?
In recent years, we have been working with an increasing number of European eCommerce companies that choose to operate their businesses from Bulgaria, taking advantage of the favorable tax environment, low corporate tax rate, and access to the EU market. For many entrepreneurs, Bulgaria is becoming a strategic base for managing their European sales.
Our role is to act as a trusted local partner in Bulgaria for entrepreneurs who want to build a stable and well-structured business foundation.
We support companies in setting up the right:
- tax structure
- accounting processes
- legal framework
This allows them to focus on what they do best – growing their brand and expanding their sales across international markets.