Romania’s VAT regime

Romania introduces SAF-T and edges closer to mandatory e-invoicing

Romania’s VAT regime

Legally established companies in Romania and non-resident entities who are required to keep double entry accounting books are in scope for Romanian SAF-T from 1 January 2022.

The mandate is being introduced in a phased approach based on taxpayer size. SAF-T submissions are via XML and contain over 800 fields.

The aim is to remove certain declarations and to generate pre-filled returns based on the information provided by SAF-T once the project has been rolled out.

This move is not uncommon and follows the trend being seen across the EU with tax administrations requiring increasingly granular data in real-time in Italy, Spain and Hungary paving the way for pre-populated VAT returns.

Get the information you need

Mandate quick facts

D406 must be submitted electronically in PDF format with an XML attachment and electronic signature. The combined file size must not exceed 500MB for it to be accepted at the portal.

The official name for the submission is D406. It has five sections:

  • General ledger
  • Accounts receivable (AR)
  • Accounts payable (AP)
  • Fixed assets
  • Inventory

The submission timeframes vary:

  • Periodically: For general ledger, AR and AP. Filing is permitted up to the last day of the calendar month following the reporting period. A grace period of six months has been granted, during which non-submission or incorrect filing won’t result in penalty, providing submissions are correct by the end of the grace period.
  • Annually: For fixed asset information. Submission must be made by the deadline for financial statements.
  • On demand: For inventory related information. Submission must be made no later than the deadline requested but this must give at least 30 days’ notice from the date of request.

Important dates

September 2021: Voluntary test period began with D406T allowing taxpayers to become familiar with the data extraction and mapping requirements.

January 2022: Starting 1 January for taxpayers designated by the Romanian tax administration as ‘large’.

During 2022: The date has yet to be announced for when mid-sized taxpayers will be in scope.

2023: Small taxpayers

Looking ahead

The ANAF, Romania’s tax authority, has announced plans to introduce B2B e-invoicing and collaboration with industry stakeholders is expected as the e-invoicing platform is developed.

The ultimate goal, as is often the case when a tax administration wants visibility of more data so they can take steps to close their national VAT gap, looks set to be a system that ‘clears’ each supplier invoice prior to it being sent to a buyer. 

How Sovos can help

As Romania edges closer to continuous transaction control e-invoicing, Sovos enables businesses to keep up with the latest requirements to meet the growing demands of VAT compliance.

Let our experts monitor, interpret and codify legal changes and requirements into our software giving you compliance peace of mind and reducing the burden on your tax and IT teams.