Romania has recently released new guidelines for taxpayers regarding the implementation of e-invoicing and e-reporting requirements. The guidance provides detailed information on the usage and access of the national RO e-Invoice system, as well as the roles and responsibilities of taxpayers in the system.
The national system for electronic invoicing, known as RO e-Invoice, was developed to offer businesses an electronic service for issuing and receiving invoices. The standardization of electronic invoicing systems globally has numerous advantages, including improved economic efficiency, reduced environmental impact, and decreased administrative burdens. This guide is intended for all taxpayers and aims to provide them with the necessary information to comply with the new requirements.
The amendments regarding electronic invoicing were introduced through Law no. 296/2023, which was published in the Official Gazette on October 27, 2023. These amendments align with the phased approach outlined in Council Implementing Decision (EU) 2023/1553, which grants Romania a special derogation measure from certain articles of Directive 2006/112/EC on the common system of value-added tax. Under this decision, Romania is authorized to mandate electronic invoicing for all transactions between taxable persons established in the country, starting from January 1, 2024.
The implementation process will occur in two stages. In the first stage, from January 1, 2024, to June 30, 2024, taxable persons established in Romania, whether registered for VAT purposes or not, are required to report all invoices issued in the business-to-business (B2B) relationship and in the relationship with public institutions, excluding those in the business-to-government (B2G) relationship. Non-established taxable persons registered for VAT purposes in Romania must also report all invoices issued in the B2B relationship for goods deliveries and services provided in Romania.
Certain operations are exempt from the obligation to use the RO e-Invoice system, including deliveries of goods dispatched or transported outside the European Union, intra-community supplies of goods, and specific situations outlined in Government Emergency Ordinance no. 120/2021. Suppliers who are taxable persons established in Romania are required to transmit issued invoices to recipients, unless both the supplier and recipient are registered in the RO e-Invoice Register. The deadline for transmitting invoices in the RO e-Invoice system is 5 working days from the date of issuance, but during the period from January 1 to March 31, 2024, no penalties will be imposed for non-compliance.
In the second stage, starting from July 1, 2024, issuers of electronic invoices must transmit them to recipients using the RO e-Invoice system. Only invoices that meet the conditions outlined in Government Emergency Ordinance no. 120/2021 will be considered valid invoices for transactions between taxable persons established in Romania. The acceptance of electronic invoices is subject to the recipient’s approval, except for invoices that meet the conditions specified in the ordinance. Failure to transmit invoices through the RO e-Invoice system constitutes an offense and is subject to a fine equal to the amount of VAT indicated on the invoice.
The guidance also provides information on the relationships used in the national RO e-Invoice system. The B2G relationship refers to transactions between a business operator and contracting authorities or entities. Public institutions obligated to use the RO e-Invoice system can be found on the ANAF portal. The B2C relationship pertains to tourism operators in Romania who operate classified tourist accommodation facilities and/or licensed travel agencies and accept holiday vouchers as a means of payment. These operators are required to report invoices issued to holiday voucher holders.
The guidance document concludes with additional information on the support provided by the Ministry of Finance (MF) and the National Agency for Fiscal Administration (ANAF) for taxpayers navigating the new e-invoicing and e-reporting requirements.
In summary, Romania has introduced new guidelines for taxpayers to ensure compliance with the latest e-invoicing and e-reporting requirements. These guidelines provide detailed information on the usage and access of the national RO e-Invoice system, as well as the roles and responsibilities of taxpayers. The phased implementation process aims to streamline electronic invoicing and improve efficiency in financial transactions.
