We review the status and prospects of theoretical studies of neutrino-nucleus interactions, and discuss the influence of the treatment of nuclear effects on the determination of oscillation parameters. The models developed to describe the variety of reaction mechanisms contributing to the nuclear cross sections are analysed, with emphasis placed on their capability to explain the large body of available electron scattering data. The impact of the uncertainties associated with the description of nuclear structure and dynamics on the determination of oscillation parameters is illustrated through examples, and possible avenues towards a better understanding of the signals detected by accelerator-based experiments are outlined.