Facturify Docs

VAT & Taxes

Configuring VAT regimes for sales in Romania, the EU, and exports.

The app automatically detects the destination country for each order and applies the correct VAT regime: Romanian VAT for domestic orders, destination country VAT (OSS), or 0% VAT for exports. Configure once, generate compliant invoices automatically.

Full automation

You don’t need to manually select the VAT regime for each order. The app analyzes the customer’s country, client type (consumer or business), and the configured regime, then applies the correct VAT automatically.

HOME vs OSS — Which Regime to Choose?

For sales to other EU countries, you have two options:

HOME (National)

Apply Romanian VAT (21%) to all sales to the EU, regardless of the destination country.

Best for: Stores with EU sales under 10,000 EUR/year. No additional registration required.

OSS (One Stop Shop)

Apply the destination country’s VAT rate (e.g., Germany 19%, France 20%, Italy 22%).

Best for: Stores with EU sales over 10,000 EUR/year (mandatory) or those seeking competitive pricing. Requires OSS registration with ANAF.

Plan required

The OSS regime requires the Professional plan or higher. HOME is available on all plans. See Subscriptions.

HOME Regime

The default and simplest option. All VAT is reported only in Romania:

Setup:

  1. Go to Settings → EU VAT Compliance
  2. Select “HOME”
  3. Verify the default VAT rate (e.g., “Normal” 21%)
  4. Save

Result

All EU orders will be invoiced with Romanian VAT (21%). Example: customer from Germany → invoice with 21% Romanian VAT.

OSS Regime

Apply the customer’s country VAT rate. Mandatory if you exceed 10,000 EUR in annual EU sales:

Requires Professional plan

The OSS functionality requires a Professional plan or higher.

Requirements for OSS

  1. Register in the OSS system through SPV ANAF
  2. Obtain your intra-community VAT ID from ANAF
  3. Add the intra-community VAT ID in SmartBill → Settings → CIF Management
  4. Create VAT rates named “OSS” in SmartBill for each VAT percentage of the countries you sell to (see below)
  5. In the app: Settings → EU VAT Compliance → OSS
  6. Enable “I have a separate intra-community VAT ID” and enter the VAT ID
  7. Save

VAT rates required in SmartBill

For the OSS regime, you need to create in SmartBill → Settings → VAT Rates a rate named “OSS” with the VAT percentage for each country you sell to.

Example: if you sell to Germany (19%) and France (20%), create:

  • OSS at 19% (for Germany)
  • OSS at 20% (for France)

You can find the correct VAT rates for each EU country in the app on the EU VAT Rates page in the menu. Only add rates in SmartBill for the countries where you have sales.

Result

EU orders will be invoiced with the customer’s country VAT rate. Example: customer from Germany → invoice with 19% German VAT. The app automatically detects the country and applies the correct rate.

Shopify configuration required

In Shopify Admin → Settings → Taxes and duties → European Union, enable VAT collection and select the OSS regime. It must match the setting in the app.

Intra-Community VAT ID

The intra-community VAT ID is a separate tax identification number, required for OSS invoicing:

National VAT ID vs Intra-Community VAT ID

National VAT ID: RO12345678 (for sales within Romania)

Intra-Community VAT ID: the code received from ANAF after OSS registration

The app automatically switches between the two VAT IDs: national VAT ID for domestic invoices, intra-community VAT ID for OSS invoices.

Important

The intra-community VAT ID must also be added in SmartBill → Settings → CIF Management. Without it, OSS invoice generation will fail.

Reverse Charge — B2B Sales in the EU

When you sell to a company in another EU country that has a valid VAT ID, the invoice is issued with 0% VAT:

How it works

You issue the invoice without VAT (0%) with the note “Reverse charge”. The purchasing company registers the local VAT in their own country.

Example: You sell to a company in Germany (VAT ID: DE123456789) → invoice with 0% VAT, “Reverse charge” note.

Conditions (all must be met):

  • You are a VAT payer in Romania
  • The customer has a valid VAT ID from another EU country (verified automatically)
  • The customer is NOT from Romania

Where does the customer's VAT ID come from?

The app reads the VAT ID from the “Company” field in the Shopify order’s billing address. B2B customers must enter their VAT ID there (e.g., DE123456789). If the field contains a regular company name (e.g., “ACME Corp”), the order is treated as B2C.

Automatic detection

The app automatically verifies the customer’s VAT ID through VIES (for the EU) or ANAF (for Romania). If the VAT ID is valid and from another EU country, reverse charge is applied automatically. No manual action is needed.

Setup (one-time):

  1. In SmartBill, verify that you have a VAT rate named “Taxare inversa” at 0% (category: AE - Reverse charge)
  2. The app automatically uses this rate for B2B orders from the EU

Reverse charge vs Export — two separate rates

In SmartBill you must have two separate 0% VAT rates:
• “Taxare inversa” (0%) — for B2B sales to EU companies
• “EXPORT” (0%) — for sales to countries outside the EU
These are different tax treatments and must not be confused.

Export (Sales Outside the EU)

Sales to countries outside the EU (USA, UK, Canada, Switzerland, etc.) are VAT-exempt:

Setup:

  1. In SmartBill, create a new VAT rate: “Export” at 0%
  2. In the app: Settings → Export, enable “I have export orders”
  3. Select “Export” in the corresponding field
  4. Optional: enable “Include prepaid customs duties” if you pay the customs duties yourself (DDP)
  5. Save

Automatic detection

The app automatically detects when the destination country is outside the EU and applies the “Export” rate with 0% VAT.

Usage Examples

Romania → Romania (Domestic)

Consumer customer from Bucharest → 21% VAT (Romania). National VAT ID on the invoice.

Romania → Germany (OSS)

Consumer customer from Berlin → 19% VAT (Germany). Intra-community VAT ID on the invoice.

Romania → Germany (HOME)

Consumer customer from Berlin → 21% VAT (Romania). National VAT ID on the invoice.

Romania → France, B2B company (Reverse charge)

Company in Paris with valid VAT ID → 0% VAT. “Reverse charge” note on the invoice.

Romania → USA (Export)

Customer from New York → 0% VAT. “Export” note on the invoice.

Common Issues

VAT regime mismatch (Configuration mismatch)

Cause: The app is set to HOME but Shopify is configured for OSS (or vice versa).

Solution: Verify that the regime in the app (Settings → EU VAT Compliance) matches the one in Shopify (Settings → Taxes and duties → European Union).

Intra-community VAT ID not accepted by SmartBill

Cause: The VAT ID has not been added in SmartBill.

Solution: Go to SmartBill.ro → Settings → CIF Management → Add new CIF. Enter the VAT ID exactly as received from ANAF.

Export or Reverse charge VAT rate does not exist

Cause: You haven’t created the VAT rates in SmartBill.

Solution: In SmartBill → Settings → VAT Rates, add “Export” at 0% and “Taxare inversa” at 0%.

Reverse charge is not applied automatically

Cause: The customer’s VAT ID is invalid or cannot be verified at the moment.

Solution: Verify that the customer’s VAT ID starts with the country code (e.g., DE123456789). Test manually on VIES Portal. Try again later if the service is not responding.

If the issue persists

See the Troubleshooting page or contact support at support@facturify.ro.

Next Steps

Invoice Generation

Learn how to generate invoices compliant with your VAT regime

Configuration

General app settings

Subscriptions

Check the plan required for OSS

Troubleshooting

Resolving VAT issues