E-Commerce & B2C Services in Romania
A digital product encompasses any item or service that is stored, conveyed, and used in electronic form. This category includes products or services that consumers access via email, internet downloads, or through logging into a website. For businesses aiming to sell digital products in any European Union (EU) member state, including Romania, it’s essential to register with the One-Stop Shop (OSS).
Read more about B2C services & E-Commerce in Romania in our comprehensive guide.
E-commerce in Romania
The EU VAT reform, which took effect on 1 July 2021, affects e-commerce firm owners that conduct cross-border transactions within the EU or import items from outside the EU.
OSS/ IOSS
The EU VAT reform, effective from July 1, 2021, significantly impacts e-commerce business owners involved in cross-border transactions within the EU or importing goods from non-EU countries. This reform introduced the One-Stop-Shop (OSS) system, enabling businesses to register for VAT in a single EU country and submit quarterly VAT returns, thereby simplifying the VAT process for cross-border sales within the EU.
Additionally, for imported goods, a distinct system known as the Import One-Stop-Shop (IOSS) has been implemented. This reform also expanded the scope of the previous Mini One-Stop Shop (MOSS) scheme to encompass VAT on certain digital products within the EU.
The primary objectives of both the OSS and IOSS schemes are to streamline tax compliance, lessen administrative burdens, and enhance tax collection efficiency.
Key changes include:
- A single EU-wide threshold of EUR 10,000 has been established.
- The OSS is tailored for EU-based businesses selling goods to customers in other EU member states.
- The IOSS is particularly relevant for non-EU businesses selling goods valued up to €150 to EU customers, adhering to standard VAT import regulations.
These reforms provide a more unified and simpler VAT system for businesses engaging in e-commerce across the European Union.
GVC can help you with your OSS/IOSS requirements visit our dedicated page by clicking here for more information about our services.
Selling in Romania?
B2C services in Romania
The One-Stop Shop (OSS) for VAT is an optional framework that allows businesses to manage VAT reporting within a single EU country. This system is particularly beneficial for businesses engaged in providing cross-border telecommunications, broadcasting, or digital services to non-taxable persons within the EU. By registering for OSS, these businesses can simplify their VAT obligations across multiple EU jurisdictions.
Among the OSS services are:
- Website hosting.
- Supply of software.
- Access to databases.
- Downloading apps or music.
- Online gaming.
- Distance teaching.
- Accommodation services carried out by non-established persons.
- Admission to cultural, artistic, sporting, scientific, educational, entertainment events, fairs & exhibitions.
The One-Stop Shop (OSS) significantly simplifies the VAT process for businesses operating across the European Union. By using the OSS, you eliminate the necessity to register for VAT separately in each EU country where you conduct sales. With this system, you can handle VAT registration, file VAT returns, and make payments all in one place. Under the OSS framework, it’s important to consistently apply its rules to all your clients in every EU nation where you offer services or products. This uniform approach streamlines VAT compliance for businesses engaged in cross-border sales within the EU.
Currently, there are two schemes in operation under OSS:
- The Union Scheme – which is available to enterprises that have been formed in the EU or that have at least one branch in an EU country.
- The Non-union Scheme – which is Intended for enterprises that have not been created in the EU and do not have any branches in the EU.
Last Updated:03/01/2024
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax
