Romania e-invoicing
E-invoicing in Romania is developing fast. With a current B2G and High Fiscal Risk B2B mandate already in place and a new obligation facing all companies with operations in Romania from 1 Jan. 2024, it can be hard to stay on top of your business’ requirements. Failing to comply with Romania’s e-invoicing and e-reporting mandates will result in penalties, but more importantly, it will lead to invalid tax invoices – which don’t allow for VAT deduction – and, ultimately, may also trigger protracted tax audits, so it is crucial that you are aware of your requirements.
Read on to learn about the current state of Romania e-invoicing – from continuous transaction controls (CTC) and e-Factura to B2B e-invoicing developments – and what’s to come.
Table of contents
1. At a glance: Romania e-invoicing
2. E-invoicing regulations in Romania
3. Benefits of e-invoicing
4. How to choose the right e-invoicing software in Romania
5. Future of e-invoicing in Romania
6. Additional obligations for VAT compliance in Romania
7. FAQ
8. Setting up e-invoicing and e-reporting in Romania with Sovos
9. Additional resources
2. E-invoicing regulations in Romania
3. Benefits of e-invoicing
4. How to choose the right e-invoicing software in Romania
5. Future of e-invoicing in Romania
6. Additional obligations for VAT compliance in Romania
7. FAQ
8. Setting up e-invoicing and e-reporting in Romania with Sovos
9. Additional resources
Romania B2G e-invoicing
CTC Type
E-invoice clearance coupled with e-reporting requirements for transactions carried out between January and July 2024 with public institutions
Network
Centralised network where the e-invoice exchange is primarily processed through the RO e-Factura platform
Format
UBL 2.1 XML format file following CIUS RO national validation rules
eSignature Requirement
Digital Seal applied by the Ministry of Finance
Romania B2B e-invoicing
CTC Type
E-invoice clearance coupled with e-reporting requirements for transactions carried out by VAT-registered entities
Network
Centralised network where e-invoice exchange is primarily processed through the RO e-Factura platform
Format
UBL 2.1 XML format file following CIUS RO national validation rules
eSignature Requirement
Digital Seal applied by the Ministry Of Finance
Archiving Requirement
10 years
E-invoicing and e-reporting regulations in Romania
Romania introduced e-invoicing on a voluntary basis in November 2021 for B2G and April 2022 for B2B transactions. Romania’s Government Emergency Order no. 120/2021 implemented the RO E-Factura platform, the country’s e-invoicing system.
From July 2022, e-invoicing became mandatory for B2G and B2B transactions of so-called ‘high fiscal risk products’ following article II of Law no. 139/2022.
Romania applied for a derogation from the EU VAT Directive, aiming to implement a broader B2G and B2B e-invoicing and e-reporting mandate. The EU Council granted derogation in July 2023, allowing Romania to implement mandatory e-invoicing from 2024. The enacting of Law no. 296/2023 provides a new B2G and B2B e-invoicing mandate coupled with e-reporting requirements.
What is RO e-Factura?
RO e-Factura was officially launched in November 2021 as a voluntary clearance program for e-invoices, devised in an effort to streamline Romania’s tax collection. Users of e-Factura issue and submit their electronic invoices in a structured XML format through the system. Invoices are then cleared (following certain schema checks) and a digital seal is applied.
The RO E-Factura platform enables the automatic exchange of electronically issued invoices between entities registered in the system.
Romania B2B e-invoicing and e-reporting
B2B e-invoicing is already in play for transactions that include products deemed a high tax risk, including:
- Fruit and vegetables
- Alcoholic beverages
- Mineral products
- Construction materials
- Clothing and footwear
Following the recently published mandate, B2B e-invoicing requirements will extend to all products. From January 2024, established and VAT-registered entities are required to report B2B domestic transaction invoices to the RO E-Factura platform within five days of issuance. From July 2024, invoices issued in transactions between established entities must be issued electronically through the RO E-Factura platform.
If, however, taxpayers fail to issue the invoice electronically through the RO E-factura platform, they are obligated to submit it to the RO e-Factura platform within five calendar days.
Romania B2G e-invoicing
From 1 July 2022, Romanian taxpayers were obliged to issue e-invoices, submitting them through the RO e-Factura system, when conducting business with the public sector. This obligation was namely within the context of certain public procurement contracts.
Romania’s e-invoicing mandate has expanded the scope of B2G invoicing in Romania which will apply to all transactions with public institutions from 2024.
Romania e-Transport system
Romania’s e-Transport system, often referred to as RO e-Transport, is used to monitor products when they are being transported. Coupled with the implementation of the CTC mandate, this is another reform that the nation has devised as part of its plan to combat tax fraud and evasion.
The application procedure of the RO e-Transport system has been approved by the joint Order of the National Agency for Fiscal Administration (ANAF) and the Romanian Customs Authority (AVR) no. 1190/4625/2022, with penalties applicable from October 2022.
The RO e-Transport system requires taxpayers to declare the movement of goods from one location to another, in advance of said movement. Once declared, it issues a number on the transport documents which is to be verified by authorities en route.
Timeline: e-invoicing & e-reporting adoption in Romania
The implementation of e-invoicing in Romania has been done in stages. This is a brief timeline of its adoption:
- March 2020: E-invoicing system e-Factura is launched as a pilot program.
- October 2020: Government Emergency Ordinance (GEO) no. 120/2021 introduced the legal framework for the implementation of e-Factura.
- November 2021: Start of the voluntary phase for issuance of e-invoices for B2G transactions.
- April 2022: Invoices for B2B transactions of high fiscal risk transactions can be voluntarily submitted in e-Factura.
- July 2022: It is now mandatory to issue invoices for B2B transactions of high fiscal risk products through the RO e-Factura platform.
- January 2024: For B2B transactions, established taxable persons and VAT registered entities must report invoices in the e-Factura system within five days of issuance.
- April 2024: End of three-month grace period for e-invoicing mandate. Penalties will apply to non-compliant taxpayers.
- July 2024: The system will shift to an invoice clearance system for B2B transactions between established taxpayers.
Benefits of e-invoicing
From a business perspective, e-invoicing offers several benefits when compared to traditional invoicing. Benefits may include:
- Saving costs by reducing paper, postage and manual labour
- Saving time by using structured, automated electronic systems and processes
- Increased compatibility and interoperability across businesses with initiatives like PEPPOL
- Enhanced security can be achieved with the validation and authentication of systems like e-Factura
How to choose the right e-invoicing software in Romania
Considering the ever-evolving nature of regulations and mandates surrounding newer technologies and platforms like RO e-Factura, it is important that your business identifies and utilises the right software. The cost of using e-invoicing software that does not update with changes to regulations is not desirable for any organisation.
Setting up e-invoicing and e-reporting in Romania with Sovos
Get in touch with a Sovos expert to explore setting up e-invoicing and e-reporting in Romania.
Future of e-invoicing in Romania
The future of e-invoicing in Romania has already arrived. Following the EU Council’s derogatory decision to allow Romania to implement mandatory e-invoicing, Romania published a more comprehensive B2B mandate with a 2024 roll-out date. The new law requires businesses to issue structured electronic invoices for transactions to both business and public sector entities, and it applies to established and VAT-registered entities.
The looming implementation of VAT in the Digital Age in the EU may deliver more changes in Romania, however. Aiming to digitise the European VAT system, this proposal is generating a lot of uncertainty for businesses that conduct operations in the EU as it includes requirements for digital reporting and e-invoicing – as well as changes to VAT registration
While the future of tax in the European Union may be uncertain, you can rely on Sovos to help you navigate the digital landscape. Bookmark this page to stay up to date with the latest developments.
Additional obligations for VAT compliance in Romania
While it’s important to ensure your business complies with Romania’s e-invoicing requirements should it qualify, there are other obligations that require attention – including general VAT Compliance and the Romanian SAF-T mandate.
The cost of non-compliance may be severe, but our materials and experts can be the helping hand you need to ensure you are meeting your obligations.
FAQ
Is e-invoicing mandatory in Romania?
E-invoicing will be mandatory for all B2B transactions in Romania from 1 July 2024, adding to the existing electronic invoicing requirements for B2G and high fiscal risk B2B transactions.
What is the invoice e-reporting obligation in Romania?
Between January and June 2024, established entities are required to report their B2B invoices to the RO e-Factura platform within five days of issuance. This reporting obligation applies to VAT-registered entities from January 2024 onwards.
What do I need for a Romanian invoice?
There are numerous requirements for invoices in Romania, including:
- Date of issuance
- VAT number of both supplier and customer
- Full name and address of both supplier and customer
- Full description of applicable goods or services, including quantities
- The net supply value
- The gross invoice value
- The applicable VAT rate
How does the RO e-Factura platform work?
The Romanian e-Factura is a clearance system which sees e-invoices sent, cleared and received through the central platform.
What are the penalties for non-compliance?
Should a taxpayer in scope of the e-invoicing and e-reporting mandate not comply with its e-invoicing obligations, they may receive a fine. From April 2024 (at which time the 3-month grace period ends) 2024, large non-compliant taxpayers may be fined between 5,000-10,000 RON, and others may expect a financial penalty between 500-2,500 RON, when failing to meet the e-reporting requirements set forth. From July 2024, non-compliance with the with the issuance and receipt of e-invoices will result in a fine equal to 15% of the total invoice amount.
E-invoice and e-report in Romania with Sovos
Sovos’ continuous transaction controls (CTC) software was purpose-built to help customers stay on top of their obligations, wherever they do business, even as the rules change.
As CTCs and e-invoicing continue to grow in global adoption, it is vital to partner with a provider that closely monitors the decisions of tax administrations and understands the regulations you face. Sovos can help.
One of the largest spirits companies in the world, Brown-Forman turned to Sovos for help with several challenges it was facing surrounding changing e-invoicing regulations. The company needed a solution that would monitor and implement the fiscal requirements of the countries it operated in.
With Sovos e-invoicing compliance in place, Brown-Forman was able to redeploy its resources to core business functions knowing that its e-invoicing requirements were being met – both in the present and the future.
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