Understanding the Upcoming Amendments in Digital Tax Compliance
Romania is gearing up to introduce substantial updates to its e-Invoicing, e-Transport, and e-VAT systems through a Draft Government Emergency Ordinance published on December 2, 2024. These changes aim to refine fiscal compliance mechanisms while addressing feedback from stakeholders.
The Evolution of e-Invoicing Requirements
The proposed amendments bring key changes to the e-Factura framework, set to take effect in January 2025:
- Mandatory Reporting for Simplified Invoices
Simplified invoices, typically for transactions below EUR 100 and without detailed customer information, will now fall under the mandatory e-Invoicing scope. This change seeks to close gaps in fiscal reporting by requiring submission through the e-Factura system. However, simplified invoices generated by electronic cash registers remain exempt. - Exemptions for Specific Transactions
Invoices for intra-community goods deliveries—where the recipient provides a valid EU VAT number—are exempt from reporting obligations, even if the recipient is VAT-registered in Romania. - Adjustments to B2C Compliance
To address privacy concerns, businesses will no longer need to report consumers’ natural identification numbers (CNPs). Instead, a 13-digit placeholder of zeros will be used when issuing e-Invoices to individuals without a VAT ID.
These measures reflect Romania’s commitment to enhancing transparency while responding to concerns about taxpayer privacy and administrative burden.
e-Transport: Extended Compliance Timeline for AEOs
Authorized Economic Operators (AEOs) benefit from a further postponement of penalties for non-compliance with international transport reporting requirements in the e-transport system. The enforcement of penalties is now delayed until March 31, 2025, offering businesses more time to meet the updated standards.
e-VAT Adjustments and Timeline Revisions
Changes to Romania’s e-VAT system, part of the broader digital tax initiative, include a delay in the compliance notification and associated penalties. Taxpayers now have until July 2025 to adapt to the pre-filled VAT return process, alleviating immediate pressures.
Anticipated Outcomes and Next Steps
The Romanian Ministry of Finance has outlined these proposals to enhance fiscal oversight, particularly for transactions currently exempt from reporting. The introduction of these amendments underscores the government’s intention to modernize tax compliance while addressing practical challenges faced by businesses.
An update to the technical documentation of the e-Factura system is expected shortly, providing further clarity on these changes.
What This Means for Businesses
Taxpayers, particularly those managing cross-border transactions and consumer sales, should prepare for these adjustments. Proactive adaptation to the new e-Invoicing and e-VAT requirements will help businesses navigate compliance smoothly.
