Romania Proposes New Identifiers for Tax Compliance

Romania is taking steps to modernize its tax system by introducing two new identifiers. These changes aim to streamline tax compliance procedures and enhance individual data privacy.

The first proposed identifier is număr de identificare digitală, a digital identification number (DIN) designed as an alternative to the traditional personal numerical code (CNP) used in B2C transactions. By allowing individuals to use a DIN instead of their CNP in digital systems, the Romanian government seeks to strengthen data protection and mitigate the risk of identity theft.

The second identifier is a non-fiscal identifier specifically for foreign entities subject to or opting into certain Romanian tax obligations. This identifier will facilitate interactions between these entities and the Romanian tax authority, granting them access to systems like e-Factura.

While the proposed changes are intended to improve tax administration and protect taxpayer information, the full impact of these new identifiers on businesses and individuals will become clearer once the legislation is finalized and implemented.

Potential implications include the need for businesses to update their IT systems to accommodate the new identifiers and possible challenges in educating taxpayers about the changes and ensuring smooth adoption.

Make sure to monitor further developments as the Romanian government refines these initiatives.

There’s more you should know about e-invoicing in Romania – learn more about the new and upcoming regulations.