More and more Romanian entrepreneurs are choosing to open their businesses in Dubai for clear tax advantages: 0% corporate tax up to AED 375,000, 0% taxes on dividends, 0% VAT for exports and total absence of personal income taxes.
The real question, however, is another:
Can you legally sell in Romania through a Dubai firm without tax issues?
The answer is YES, but only if you follow the correct VAT rules, compliance and avoidance of permanent establishment.
This guide explains exactly how sales work in Romania through a company registered in Dubai, what taxes apply, what obligations arise and which are the safest structures for Romanian entrepreneurs in 2025.
Can you sell in Romania through a Dubai company? Yes — but with clear rules
We must make a major distinction:
• Sales to companies (B2B) in Romania
• Sales to Individuals (B2C)
• Sales of digital services/consulting
• Sales of physical products (ecommerce)
The tax regime is completely different for each category.
1. B2B sales in Romania through Dubai company (the easiest option)
If you sell to Romanian companies:
• issue invoice without VAT
• apply the rule place of supply = Dubai/UAE
• You do not owe VAT in Romania
• You do not need to register in Romania
• Even the Romanian company does not pay VAT on the import of services, because the supplier is non-EU
In addition:
It is not considered a permanent establishment in Romania if:
• you have no employees in Romania
• you don't have a deposit/office here
• do not provide physically executed services in Romania
• do not sign contracts on the territory of Romania
This means that a consultant, programmer, marketing agency or service firm can work 100% legally B2B with Romanian clients only with Dubai company, without local taxes.
2. B2C Sales in Romania — Physical Products (Ecommerce)
If you sell physical products to Romanian consumers, the rules come into play EU OSS (One-Stop Shop).
The situation is clear:
• your company in Dubai can legally sell to Romanians
• but if you sell to individuals in the EU, you have to collect the VAT of the destination country
• that is, VAT Romania, if you sell to Romanians
It doesn't matter that the company is from Dubai — VAT is applied according to the customer, not the supplier.
What needs to be done:
• you register in non-EU OSS
• declare the VAT collected
• you pay the VAT quarterly
IMPORTANT:
If you sell B2C, there is no structure that eliminates EU VAT.It is a European law, not a Romanian one, and it applies to everyone.
3. B2C sales in Romania — digital services
Here the rules are similar to ecommerce, but easier.
Digital services to individuals in the EU (e.g. courses, software, automated consulting, subscriptions) are charged according to:
• the location of the customer, not the supplier
• so the Dubai company owes Romania VAT if the client is Romanian
What is done?
• Non-EU OSS registration
• VAT invoicing Romania
• quarterly reporting
It is perfectly legal and 100% compliant.
4. How to avoid “permanent establishment” in Romania (the biggest problem for Romanians)
Permanent establishment in Romania can occur if:
• you have employees in Romania
• you have a physical office or warehouse
• deliver goods from Romania
• perform services on the territory of Romania
• sign contracts in Romania on behalf of Dubai
If none of the above conditions is met, the firm remains 100% tax resident in Dubai.
Learn more about accounting obligations in Dubai in our dedicated guide.
5. Invoicing — how to issue correct invoices from Dubai to Romania
B2B Romania → Dubai
Excluding VAT
• Dubai tax code
• Mention: “VAT not applicable — non-resident supplier (Dubai)”
B2C Romania → Dubai
With VAT Romania
• through non-EU OSS
• VAT included in the selling price
Digital services
Localization by customer
• if the customer is Romanian → VAT Romania
• if it is non-EU → 0%
6th. Banking — how to withdraw from Romania to the Dubai company account
Dubai firms can cash out without any problems:
• international bank transfers
• Stripe
• PayPal
• SEPA transfers via Wio Bank or Mashreq NeoBiz
Major advantage: income received in the Dubai account is untaxed in the UAE(0% personal income tax and 0% on dividends).
After cashing out, you can transfer your money to your personal account without fees.
7th. Practical examples
1. Marketing Agency (Dubai → Romania) — B2B
Invoice without VAT, 100% legal.
No OSS.
Excluding VAT.
2. IT Consultant/Developer — Dubai → clients EN
No VAT on B2B.
Only VAT applies to B2C if you sell to individuals.
3. Online Store —Dubai → B2C Romania
Need non-EU OSS.
Romania VAT collected and reported quarterly.
4. Dropshipping — Dubai → Romania
Obligatory OSS at B2C.
No taxes in Dubai on profit.
8. Can I sell in Romania without VAT if I have a Dubai company?
Yes, but only if:
• sell only B2B
or
• sell products/services outside the EU
If you sell B2C in Romania, VAT is mandatory, regardless of country, company or structure.
You can sell legally in Romania with Dubai company. The important thing is to do it right.
Dubai offers you:
• 0% corporate tax
• 0% tax on dividends
• 0% VAT on exports
• international recognition
• real tax residence
But Romania requires only two things:
1. Collect VAT correctly if you sell to EU consumers
2. Do not create a permanent establishment in Romania
If you follow these two rules, the model is 100% legal, verifiable and perfect for Romanian entrepreneurs in IT, consulting, digital services, ecommerce or dropshipping.
Do you want to analyze your exact business model and what taxes you will pay?
