The Romanian Ministry of Finance is making a pivotal move to modernize the nation’s tax system by extending mandatory e-Invoicing to business-to-consumer (B2C) transactions. Detailed in Emergency Ordinance no. 69, published on June 21, 2024, this mandate will come into effect on January 1, 2025.
Key Information for Businesses
Starting January 2025, all businesses in Romania must submit B2C invoices electronically through the RO e-Invoice system. Initially voluntary, this requirement now aims to enhance transparency and reduce tax evasion.
Important Points:
- Mandatory e-Invoicing for B2C Transactions:
- From January 2025, businesses must use the RO e-Invoice system for B2C transactions. Initially voluntary, the mandate aims to ensure transparency and combat tax evasion.
- Simplified Invoices Exemption:
- Transactions below 100 euros using simplified invoices are exempt from the e-Invoicing requirement. This means businesses can issue these invoices manually if the transaction value is below the threshold.
- Implementation Timeline:
- Voluntary adoption begins on July 1, 2024, with full compliance required by January 1, 2025. This phased approach gives businesses time to adapt.
- Exemptions and Extensions:
- Specific entities, such as diplomatic missions, EU bodies, and NATO forces, are exempt unless they choose to opt-in. Additionally, certain associations, foundations, and individual farmers are exempt until June 30, 2025.
- Penalties for Non-Compliance:
- Starting July 2024, penalties for non-compliance with e-invoicing requirements will be enforced, potentially reaching up to 15% of the invoice value.
Benefits of e-Invoicing
- Improved Accuracy and Efficiency: e-Invoicing minimizes errors and ensures timely reporting of economic activities.
- Enhanced Security: The digital format enhances transaction security through validation and authentication.
- Cost Savings: Businesses save on costs associated with paper, postage, and manual processing.
- Combating Tax Evasion: Mandatory e-Invoicing helps reduce the VAT gap and improve tax compliance.
Aligning with EU Standards
Romania’s e-Invoicing expansion aligns with EU efforts to standardize electronic invoicing across member states. This alignment improves cross-border economic activities and supports the EU’s broader digital transformation goals.
The extension of mandatory e-Invoicing to B2C transactions marks a significant step towards modernizing Romania’s tax system and enhancing fiscal transparency. Businesses need to prepare for this change by January 2025 to avoid penalties and benefit from the efficiencies of electronic invoicing.
