More and more clients prefer to pay by card, smartwatch, or phone instead of carrying cash. If you are registered as a freelancer (for example, an IT specialist, consultant, designer, therapist, or teacher), you are probably asking yourself: „Can I put a POS terminal in my office or accept card payments through my website without having to buy and maintain a cash register?“.
The law in Bulgaria has clear, and fortunately – very favorable rules on this matter. Here is the full picture of how to accept card payments legally and without unnecessary bureaucracy, explained in simple terms.
1. Do I need a cash register if I have a POS terminal?
The short answer is absolutely: No.
The main advantage of being registered as a „freelance profession“ (свободна професия) is that by law (according to Ordinance H-18), you are completely exempt from the obligation to have a fiscal device (cash register). This rule applies regardless of how your client pays – in cash, by bank transfer, or via a POS terminal.
The NRA (National Revenue Agency) will not fine you for the lack of a fiscal receipt, as long as your activity truly meets the requirements for a freelance profession – namely, providing services through your personal labor and expertise.
2. What types of POS terminals are suitable for freelancers?
You do not need to sign heavy contracts with traditional banks to accept payments. Today, there are three main options:
- Physical POS terminal: The small device we all know. It is suitable if you have a physical office (e.g., a psychologist, speech therapist, or hairdresser). Offered by both traditional banks and fintech companies like myPOS or SumUp, where you buy the device once (often for under 50 euros) and have no monthly fees.
- Virtual POS (vPOS): This is a system integrated into your website that allows clients to enter their card details when booking an appointment or buying a digital product. Services like Stripe or PayPal are ideal for this.
- SoftPOS (Phone as a terminal): The newest and cheapest technology. You download a special app on your Android smartphone or iPhone, and clients simply tap their card on the back of your phone. There is no need to buy additional hardware.
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3. What document do I give the client?
Since you do not have a cash register, you cannot issue a fiscal receipt. The piece of paper that the POS terminal itself prints (or sends via SMS/email) is called a „slip“. It is merely bank proof of a successful transaction and does not replacethe official accounting document for the tax authorities.
The law requires you to document the payment in one of the following two ways:
- Issuing an invoice: This is the best, most modern, and cleanest option. You issue an electronic invoice (via free software or online platforms) where you state the amount (for example, 100 euros), and for the payment method, you strictly mark „by debit/credit card“ or „cashless“.
- Issuing a receipt/voucher: If the client is an individual who strongly refuses an invoice, you must issue a standard paper receipt from a receipt book or a document from your accounting software proving you received the amount for the respective service.
4. Taxes, fees, and visibility before the NRA
When you use a POS terminal, every single payment goes directly into your company or professional bank account. This means these funds are 100% „in the light“ for the tax authorities.
- Declaring: At the end of the year, you must declare all income from the POS terminal (along with those via bank transfer and in cash) in your annual tax return.
- Bank commissions: Banks and POS operators deduct a commission for each transaction (usually between 1% and 2%). If a client pays 100 euros, about 98.50 euros will actually enter your account.
- Tax base: Even though you receive 98.50 euros, you must issue the invoice and report a revenue of 100 euros. Why? Because the bank fee is your business expense. For freelancers, however, the state gives you a fixed percentage of „statutory recognized expenses“ (usually 25%) that cover all your costs – including POS terminal fees. You will owe the standard 10% flat tax on the remaining 75%.
5. When can the NRA make a problem? (The Exceptions)
Everything described so far applies only if you sell services.
If you decide to use your freelance registration to sell physical goods – for example, buying cosmetics wholesale to resell in your office, or mass-producing physical jewelry for sale – the NRA will automatically treat you as a merchant, not a freelancer.
The moment you systematically start selling goods, a cash register becomes mandatory for all payments with a physical POS terminal, and the penalties for not having one are severe.
Conclusion
As a freelancer, you have every right to make things easier for your clients by offering modern card payments. You do not need a cash register, you do not have to pay for fiscal memory maintenance, and you do not issue daily reports (Z-reports). Your only obligation is to choose a convenient payment provider, issue an invoice or receipt for each payment, and declare your income correctly at the end of the year.
