Is e-Invoicing Mandatory in Romania?
Reflecting legislative e-Invoicing shifts observed in various European nations, Romania has made progress to enhance its own e-Invoicing regulations in recent years. These changes are bringing important benefits for businesses and the government. They make transactions between businesses and the government smoother and increase overall transparency. The obligation to issue e-Invoices will therefore be expanded as of January 1, 2024.
What are the current rules for e-Invoicing in Romania?
Electronic invoicing to public bodies (B2G) has been mandatory in Romania since July 1, 2022. In addition, e-Invoicing has been mandatory for two supplier groups in the B2B sector since July 1, 2022: car dealers and suppliers with a high tax risk.
Since July 1, 2022, suppliers in these groups have been obliged to send invoices via the national e-Invoicing system RO e-Factura, regardless of whether the recipient in question is registered for the system or not. ANAF (National Tax Authority of Romania) issues precise definition of the products in the product categories for which a high tax risk is assumed. These are products whose trade poses an increased risk of tax evasion or tax avoidance. As of now the list includes vegetables, fruits, roots, and others.
Who will be subject to Romania e-Invoicing as of January 1, 2024?
The legislation for implementing B2B electronic invoicing for both resident and non-resident businesses has received approval from the Parliament and the President. The launch will occur in two stages:
January 2024: A near real-time reporting regime for invoices between January 1 and June 31, 2024 with no penalties until March 31, 2024. Digital reporting of invoices in XML (in addition to paper invoices) is required within 5 working days of issuance or no later than 5 working days from the Article 319(16) Fiscal Code deadline.
July 2024: Full pre-clearance electronic invoice submission via the RO e-FACTURA platform will go live and paper invoices will no longer be accepted for tax compliance. Not meeting the deadline incurs penalties: 5,000 lei to 10,000 lei for large taxpayers, 2,500 lei to 5,000 lei for medium taxpayers, and 1,000 lei to 2,500 lei for other entities and individuals. No penalties apply for failure to meet the deadline during January 1 to March 31,2024.
The Council of the European Union has approved Romania’s application for mandatory domestic VAT electronic invoicing from January 1, 2024, allowing deviation from EU VAT directive Articles 219 and 232.
What is RO e-FACTURA System?
The national system for electronic invoicing RO e-FACTURA has been created to provide businesses with an electronic service for issuing and receiving invoices. The standardization of the electronic invoicing system at the international level has significant benefits in terms of the economic operation, environmental impact and reducing administrative burdens. The platform is available for sending and downloading e-Invoices.
The Ministry of Finance in Romania has released a user guide for the mandatory e-Invoicing system set to be implemented in January 2024. This guide provides among others information on registration, access, creating XML invoices, archiving and FAQs.
How to Submit to the RO e-Factura System?
To access the RO e Factura System, registration through the Virtual Private Space (SPV) website is necessary. Moving forward taxpayers must complete the registration in the RO e-Factura.
To utilize the SPV, entities governed by commercial law must register either in their own name or under the designation of a specific legal representative.
Subsequently, taxpayers can submit their e-Invoices to the RO e-Invoicing system.
How to Generate Romanian e-Invoices?
The following steps will be needed to create a certified e-Invoice:
- The supplier generates the RO-CIUS invoice using an e-Invoicing software provider like RTC suite
- The e-Invoice is transferred to the RO e-Invoicing platform, where it undergoes checks and validation.
- Subsequently, the ANAF certifies the invoice by applying a digital signature.
- The certified e-invoice is then made available to the customer.
What is the Format of Romanian e-Invoices?
An electronic invoice refers to an invoice issued, transmitted and received in a structured electronic XML format, enabling its electronic and automated processing.
Electronic invoices must be generated based on the European standard EN 16931-1+A1 “Electronic Invoicing – Semantic Data Model for Essential Elements of an Electronic Invoice” and the national RO-CIUS rules provided in national legislation.
Conclusion
The recent endorsement of fiscal-budgetary measures underscores the pressing need for Romania’s digital transformation. With the nation embracing e-invoicing, businesses must quickly adjust to the evolving landscape, ensuring adherence to specified timelines to avoid possible penalties. This legislative initiative not only streamlines tax-related processes but also propels Romania towards a more interconnected and digitally advances economic future.
https://ecosio.com/en/blog/e-invoicing-in-romania/
https://www.globalvatcompliance.com/globalvatnews/romania-mandatory-einvoicing-2/
https://www.vatcalc.com/romania/romania-b2b-ro-e-invoicing-efactura-update/
https://mfinante.gov.ro/static/10/Mfp/ghidE-FACTURA.pdf
https://ec.europa.eu/digital-building-blocks/sites/display/DIGITAL/eInvoicing+in+Romania
https://blog.axway.com/product-insights/b2b-integration/einvoicing/romania-e-invoicing-requirements
https://dddinvoices.com/learn/e-invoicing-romania/
