VAT on Online Sales (OSS) for Web Shops

2 June 2026 · Guides

If you run an online shop that ships products to private customers in other EU countries, you have probably faced a question that returns at the end of every quarter: in which country is VAT due on orders from Germany, France or Italy? The answer is not always Romania, and the rules on VAT for online sales through the OSS scheme exist precisely to solve this complexity without forcing you to register for VAT in every state where you have a customer.

The OSS scheme (One Stop Shop) is the European mechanism that lets a trader based in Romania declare and pay, through a single return filed at home, the VAT due in all other EU states on distance sales to consumers. For a growing shop, the difference between using OSS and ignoring it is measured in compliance obligations, foreign accounting costs and, not least, the risk of penalties.

This article explains, in plain terms for a company manager, how to determine where VAT is due, what the distance-selling threshold is, how the OSS return works and what you need to configure in your accounting so that everything is correct from the first cross-border order. For foreign-capital businesses and international investors, the topic is especially relevant, as it affects reporting to the parent company and the correct treatment of VAT across borders.

Where VAT is due on online sales to EU customers

The basic rule for intra-EU distance sales (goods dispatched by you to a consumer in another member state) is that VAT is due in the country of destination, that is, where the customer is located. In other words, if you ship a product to a customer in Germany, the applicable rate is the German VAT rate, and the tax belongs to the German budget.

There is, however, an important simplification for smaller businesses. At EU level a single annual threshold applies to cross-border sales to consumers (covering both distance sales of goods and certain digital services, TBE). Below this threshold, calculated cumulatively across all EU states, you may continue to apply the Romanian VAT rate and declare the tax here. Above the threshold, VAT is due in the customer’s country, and this is where OSS comes in.

The threshold mentioned is a value fixed at European level and reviewed periodically; for the 2026 reference year we recommend confirming the amount in force together with your accountant, since falling below or above the threshold changes the reporting mechanism entirely. Important to remember: the threshold is cumulative across all states, not per country, and once exceeded, the obligation shifts to the destination state starting with the very delivery that crosses the limit.

What the OSS scheme is and the problem it solves

Without OSS, a shop that exceeds the threshold would, in theory, have to register for VAT in every member state where it has consumers, file local returns and pay the tax directly to each tax administration. For a trader selling in eight or ten countries, that would mean eight or ten registrations, as many local accounting arrangements and considerable costs.

The OSS scheme removes this burden. You register once for OSS with ANAF, and then:

• you charge VAT at the rate of each destination country at the moment of sale;
• you file a single OSS return, quarterly, reporting sales broken down by member state and by rate;
• you pay a single amount to ANAF, which then redistributes the VAT to the tax administrations of the destination states.

In effect, ANAF becomes the single point of contact through which you meet your obligations toward all other EU states. This is exactly the kind of simplification that benefits shops growing fast and starting to sell across several markets, without multiplying their administrative structure. See also how we help for the concrete situations where our team steps in.

The OSS return: deadlines and content

The special VAT return for the OSS scheme is filed quarterly, regardless of the tax period you use for domestic VAT. The deadline for filing and payment is the last day of the month following the end of the calendar quarter. This means, as a guide:

The return must be filed even if you had no eligible sales in the quarter (in which case it is a nil return). Amounts are reported in euro, and for orders invoiced in another currency the European Central Bank exchange rate of the last day of the quarter applies. It is essential that your records correctly separate domestic sales, intra-EU B2B sales and B2C distance sales falling under OSS, so that the return is accurate.

What to configure in the shop and in accounting

Moving to OSS is not just an administrative formality; it requires that the shop system and the accounting records speak the same language. In practice, proper preparation covers several points:

1. VAT rates by country – the eCommerce platform must automatically apply the correct rate based on the customer’s delivery country, not the Romanian rate.
2. Correct customer identification – you must distinguish between consumers (B2C, falling under OSS) and businesses with a valid VAT number (B2B, separate regime, with VIES verification).
3. Separate records by country and rate – the accounting database must allow the breakdown required by the OSS return.
4. Keeping documents – records relating to OSS transactions must be kept for several years and made available to the authorities on request.

Here mistakes are costly: a rate applied incorrectly, an order wrongly classified as B2B or an omission at reconciliation turns into VAT differences in another state, hard to correct later. Configuring things correctly from the start saves time and avoids retroactive corrections.

OSS, IOSS and imports: do not confuse them

Alongside OSS for intra-EU sales, there is also IOSS (Import One Stop Shop), a distinct scheme for distance sales of low-value goods imported from outside the EU to European consumers. If your shop also ships goods sourced from outside the Union directly to customers, the applicable mechanism may be IOSS rather than OSS. The two schemes have different logic and registrations, and the right choice depends on the actual flow of your goods. An analysis of your business model clarifies which scheme (or combination) applies to you.

How Conta Fiscal helps

The OSS scheme is a genuine simplification, but only when registration, configuration and reporting are done correctly from the start. Our team registers you for OSS with ANAF, sets up your accounting for the breakdown by country and rate, reviews the flows in your eCommerce platform and files the special return quarterly, so you can focus on selling rather than on tax compliance in ten jurisdictions. Explore all our services or contact us for an assessment of your online shop’s situation.

Frequently asked questions