New Fiscal Measures and E-Invoicing Obligations Introduced in Romania
In a bid to address fiscal-budgetary concerns and combat tax evasion, the Romanian government has implemented a series of changes through the publication of GEO no. 115/2023 on December 15, 2023. This legislation introduces new fiscal measures, amends normative acts, and extends certain deadlines. One of the key changes brought about by this GEO is the amendment of provisions related to mandatory e-invoicing through the Ro e-Invoice system, which will come into effect on January 1, 2024.
Under Law no. 296/2023, which was previously introduced, obligations for e-invoices through the Ro e-Factura system were established. However, GEO no. 115/2023 modifies these provisions and further clarifies the requirements for the mandatory e-invoice system in 2024. This amendment aims to streamline and improve the efficiency of the invoicing process, while also ensuring greater transparency and reducing the risk of tax evasion.
It is important to note that certain supplies are exempt from the e-invoicing obligations under the Ro e-Invoice system. These include supplies with simplified invoices, such as exports, intra-Community supplies, supplies to non-VAT registered entities in Romania, and services not subject to Romanian invoicing rules. These exemptions are designed to accommodate specific scenarios where the use of e-invoices may not be practical or necessary.
However, it is crucial for businesses to ensure compliance with the e-invoicing requirements to avoid potential fines. Starting from July 1, 2024, non-compliance with the Ro e-Invoice system may result in penalties. The fine for failure to comply is set at 15% of the total invoice amount, replacing the VAT amount. Additionally, there are additional fines ranging from RON 1,000 to RON 10,000 for late transmission of e-invoices.
To address potential system downtime, the legislation includes provisions to suspend transmission obligations if the Ro e-Invoice system is inactive for at least 24 hours. During such periods, invoices can be transmitted outside the system, ensuring that businesses can continue their operations without disruption. The status of the system will be published on relevant government websites to keep businesses informed about its availability.
These new measures aim to modernize the invoicing process in Romania and ensure greater compliance with tax regulations. By implementing mandatory e-invoicing, the government hopes to reduce the risk of tax evasion and improve the efficiency of fiscal operations. It is important for businesses to familiarize themselves with the requirements of the Ro e-Invoice system and ensure timely compliance to avoid potential fines.
In conclusion, the publication of GEO no. 115/2023 introduces significant fiscal measures and amendments related to mandatory e-invoicing in Romania. These changes aim to enhance fiscal consolidation, combat tax evasion, and improve the efficiency of public expenditure. Businesses should take note of the new obligations and exemptions under the Ro e-Invoice system to ensure compliance and avoid potential fines. The government’s efforts to modernize the invoicing process will contribute to a more transparent and efficient fiscal environment in Romania.
Source: Official Gazette 1139
