The E-invoicing Revolution in Romania: From Grace Period to Obligation
In recent years, Romania has been fighting fraud and tax evasion, particularly in response to the highest VAT gap among European Union Member States. A crucial step in this direction has been the implementation of mandatory electronic invoicing, mirroring similar initiatives in EU countries such as Poland and Italy. Let’s explore the timeline and critical aspects of Romania's e-invoicing journey, especially the grace period and the start of the e-invoicing obligation.
E-invoicing implementation timeline
- March 2020: Announcement of an e-invoicing platform.
- November 2021: Launch of the RO e-Factura e-invoicing platform and the voluntary exchange of e-invoices in both B2G and B2B relationships.
- July 2022: Mandatory e-invoicing implementation for companies involved in high fiscal risk product transactions.
- July 27, 2023: European Commission’s derogation decision release.
- January 1, 2024: Implementation of an e-invoicing mandate. Extended obligation for all B2B invoices issued by entities established in Romania to be reported through the RO e-Factura platform.
- March 31, 2024: Conclusion of the grace period for failure to report invoices via RO-eFactura.
- July 1, 2024: Start of the RO e-Factura issuing obligation.
Transition to e-invoicing in Romania
The initial phase, from January 1 to the end of June 2024, focuses on B2B transactions in which the supply of goods and services, with the place of supply in Romania, requires suppliers to submit invoices through the RO e-Factura system. This applies regardless of the recipient's registration status in the RO e-Factura register. During this period, a dual invoicing system will be in operation, allowing for issuing both electronic and traditional invoices.
After this introductory stage, the subsequent period brings a shift in invoicing standards. Starting July 2024, only electronically issued invoices in XML format from suppliers established in Romania will be accepted for input VAT deduction. These invoices must be transmitted to beneficiaries based within Romania through the RO e-Factura system. From then on, only these electronic invoices will be considered valid and recorded in accounting records, and traditional paper or PDF invoices will no longer be accepted.
Who is obliged to issue e-invoices in Romania?
- Suppliers, taxable persons established in Romania, for operations carried out in the B2B relationship.
- Taxable persons established in Romania for operations carried out in relation to public institutions, other than those carried out in the B2G relationship.
- Taxable persons not established, but registered for VAT purposes in Romania.
Format and deadline guidelines for e-invoicing in Romania
During the initial period, suppliers must send invoices to recipients in an appropriate electronic format unless both parties are registered in the RO e-Factura register. In cases where both the supplier and the beneficiary are registered, only the electronic invoice sent through the system is issued. In other scenarios, double invoicing remains applicable during this transitional phase.
The deadline for sending invoices through the RO e-Factura system is five working days from the invoice issuance date, with non-compliance resulting in sanctions and fines based on the taxpayer’s size. However, during a three-month grace period in the pilot program, taxpayers are exempt from penalties.
Transactions exempt from e-invoicing
Certain transactions are exempt from e-invoicing and should not be reported in the system. Exceptions include:
- Intracommunity supply of goods
- Export of goods or services to taxable persons not established or VAT-registered in Romania
- Simplified invoices, such as fiscal receipts
Adapting to the e-invoicing revolution
Romania is another EU country that is introducing mandatory e-invoicing, which means a revolution in business operations. Understanding the timeline, procedures, and exceptions is crucial in adapting to this new era of fiscal responsibility. The implementation of e-invoicing not only addresses the VAT gap but also represents a significant step forward in ensuring transparency and accountability in Romania's economic transactions.
Comarch EDI as your partner in the transition to e-invoicing
When preparing for significant changes such as the e-invoicing revolution in Romania, it is essential to equip yourself with the best tools available. One such tool is Comarch EDI. This platform is ready to exchange invoices through RO e-Factura and is compliant with the required XML format. Moreover, it monitors any interruptions in the availability of the government platform and offers business validations. Learn more about Comarch EDI or schedule a call with our experts today.
There’s more you should know about e-invoicing in Romania – learn more about the new and upcoming regulations.
