Extended Deadline to June 30, 2025 – What It Means for Businesses
The Ministry of Finance recently announced pivotal updates to streamline compliance with tax digitization efforts, particularly in the context of pre-filled e-VAT returns and electronic invoicing (e-Invoice) in the B2C regime. These measures, shaped in consultation with business representatives, aim to simplify processes while ensuring data accuracy and regulatory adherence.
Proposed Extensions and Legislative Adjustments
The Ministry plans to extend the deadline for implementing sanctions related to pre-filled e-VAT returns until June 30, 2025. This extension offers taxpayers additional time to adapt to the digitized system and reduces the risk of penalties during the transition.
In addition, the Ministry is proposing legislative amendments to make the transmission of personal numeric codes (CNP) strictly optional in B2C commercial transactions. This step will facilitate smoother adoption of the e-Invoice system, addressing privacy concerns while maintaining compliance.
Enhancements in Digital Tax Systems
Building on feedback from prior submissions, the Ministry of Finance has identified recurring errors in pre-filled e-VAT returns and aims to address them with the following actions:
- Improved Accuracy: Measures will be implemented to refine data accuracy, minimizing discrepancies that lead to repetitive compliance notifications.
- Comprehensive Guides: The Ministry will release a detailed guide outlining invoice types, VAT codes, and rules under the national e-Invoicing system (RO e-Factura), helping taxpayers avoid submission errors.
- Error Code Framework: Future meetings with the business community will focus on presenting common error types and developing a user-friendly error code guide.
The September 2024 data reveal promising progress—of over 360,000 returns analyzed, only 5.9% showed significant variances. Despite this, continued collaboration with accounting software developers is planned to introduce tailored technical solutions that align with the sector’s requirements.
Ongoing Collaboration with the Business Sector
The Ministry underscores its commitment to maintaining an active dialogue with stakeholders, including accounting professionals, tax consultants, and industry representatives. This collaboration ensures that tax administration tools evolve in line with business needs. At a recent meeting, organizations such as the American Chamber of Commerce in Romania (AmCham Romania) and the French Chamber of Commerce provided valuable input on system enhancements.
By fostering this partnership, the Ministry aims to create a more efficient, transparent, and user-friendly tax system for all parties involved.
The continued development of digital tax systems like e-Invoice, e-Transport, and e-VAT reflects Romania’s commitment to modernizing its fiscal landscape. These initiatives not only promote compliance but also support a streamlined, error-free tax administration process for businesses and consumers alike.
