The European Commission has recently proposed a Council Implementing Regulation that would allow Romania to introduce mandatory B2B e-invoicing. This move is part of a larger effort to digitize financial transactions and improve tax collection across the European Union. In this article, we will explore the specifics of Romania’s e-invoicing mandate and its potential impact on businesses operating in the country.
So far, Romania has already made significant progress towards implementing e-invoicing requirements. As of April 2022, B2C e-invoicing is mandatory for companies operating in the tourism industry and accepting “vacation vouchers.” In July 2022, B2G e-invoicing will become mandatory via the RO e-factura platform. Additionally, B2B e-invoicing will be mandatory for “High-Risk Fiscal Goods” starting in July 2022. The RO e-transport system will also be mandatory for the transport of these goods.
The mandate will apply to all Romanian companies as well as non-resident companies with a fixed establishment in Romania. E-invoices must be exchanged via the RO e-factura central platform, which will provide API connectivity for large taxpayers and a web platform for small taxpayers. E-invoices must be issued in a predefined CIUS_RO format, which is either UBL 2.1 or CIN.
The RO e-factura platform will apply an identification number to invoices prior to validation. Once cleared and validated, the Ministry of Finance e-signature will be applied to every cleared invoice. All fiscal documents must be stored for at least 10 years.
The mandate will have a significant impact on businesses operating in Romania. Companies will need to ensure that they are able to issue e-invoices in the required format and that they are able to exchange invoices via the RO e-factura platform. They will also need to ensure that they are able to store fiscal documents for at least 10 years.
However, there are also potential benefits to the mandate. E-invoicing can help to reduce the administrative burden associated with paper-based invoicing, as well as improve the accuracy and efficiency of financial transactions. It can also help to reduce the risk of fraud and improve tax collection.
In conclusion, Romania’s mandatory B2B e-invoicing mandate is part of a larger effort to digitize financial transactions and improve tax collection across the European Union. While it will have a significant impact on businesses operating in the country, it also has the potential to bring benefits such as increased efficiency and reduced fraud. Companies operating in Romania should ensure that they are able to comply with the mandate and take advantage of the benefits that e-invoicing can bring.