Social networks have long ceased to be just a place for sharing photos. For thousands of Bulgarians, Instagram and Facebook have become a primary channel for selling clothes, cosmetics, accessories, and home goods. The process seems simple: you upload a photo, the client sends you a direct message, and you ship the package via courier with cash on delivery.
But here comes the big question that worries many in 2026: “Does the NRA monitor these sales, and when do I have to pay tax on them?”. Here is everything you need to know to sell safely and legally.
Personal Belongings vs. Commercial Activity: Where is the limit?
The National Revenue Agency (NRA) makes a very clear distinction between clearing out your closet and running a business.
- Selling personal belongings: If you sell your old phone, your child’s outgrown clothes, or shoes that do not fit, you do not owe tax. The law assumes these are items for personal use and no commercial profit is generated from their sale.
- Commercial activity: If you buy goods wholesale (e.g., clothes from Turkey or accessories from China) with the intention of reselling them at a higher price, or if you mass-produce goods, you are already a merchant. Even if you do not have a registered company, the law treats you as such, and you owe tax on your profit (15% as an individual – unregistered merchant).
How does the NRA know what you are selling?
It is a myth that tax inspectors “stalk” Facebook profiles. They use a much more reliable method: the couriers.
All licensed courier companies (Econt, Speedy, etc.) are required to submit monthly electronic reports to the NRA for all paid cash-on-delivery amounts. The tax authorities see the total sum you have received throughout the year. If this sum is suspiciously high (for example, you receive payments every day) or if you send identical items in different sizes, the system automatically flags you for an audit.
If you are unsure when and how you should declare your income to the state, review our guide When and who must file an annual tax return?.
Free 30-minute consultation for new clients.
Do you need a cash register for your shipments?
The good news for online merchants is that you can completely legally work without a cash register, as long as you use the right service.
If you ship your goods via courier and use the “Postal Money Order” (PMO) service, you are exempt from the obligation to issue a fiscal receipt. In this case, the courier issues the payment receipt, which the client keeps. To learn more about the exceptions to Ordinance H-18, take a look at Freelancing and cash registers.
Attention: When does a VAT obligation arise?
Even if you only sell through an Instagram page without your own website, your revenue accumulates. In 2026, the thresholds for mandatory VAT registration have been changed according to the new European directives.
If your sales become successful and exceed the legal limit for the last 12 months, you are obliged to register for VAT, regardless of the fact that you do not have a physical store. So you do not miss this important milestone, see When to Register for VAT? New Thresholds and Business Advantages in the Eurozone.
Conclusion
Selling through social networks is a great way to start a business with minimal capital. As long as you are only selling your old items, you have no reason to worry. But the moment you start buying goods to resell, you have to play by the rules of online commerce. The easiest way to sleep peacefully is to track your cash-on-delivery payments, keep the invoices for the purchased goods (to prove your expenses to the NRA), and declare your profit at the end of the year.
