A close look at E-Invoicing in Romania – Navigating the digital landscape

published on 8 May 2024 | reading time approx. 4 minutes

Romania is advancing fast on its journey towards digital transformation by making significant steps on optimising invoicing processes and enhancing tax compliance. The mandatory E-Invoicing reform is closely aligned with the country's broader digitalisation agenda, aiming to modernise administrative processes, enhance efficiency and foster economic growth.

Legislative Framework Strengthening »
Implementation »
Submission Deadlines »
Contraventions and fines for non-compliance »
Improving the Technology Infrastructure »
Monitoring Compliance »
EU Standards Alignment »

Part of the modernisation endeavor of Romanian fiscality is the RO E-Invoicing System, which beside other digitalisation projects implemented so far, SAF-T and e-Transport, are going to be applied to a large scale, triggering an effective fiscal approach for tackling the fiscal evasion.

Legislative Framework Strengthening

The regulatory framework in Romania has been reinforced to support the transition to mandatory E-Invoicing. This includes amendments to tax laws and regulations to establish clear guidelines for electronic invoicing practices.

The E-Invoicing was initially integrated into Romanian legislation through Government Emergency Ordinance 120/4. October 2021 (“GEO 120”) and Governmental Emergency Ordinance 130/18. December 2021 (ׅ“GEO 130”), and it was complemented by Law no. 296/2023, later revised by Government Emergency Ordinance no. 115/2023 and no. 30/2024. However, the extension of the E-Invoicing applicability is expected in the near future.

Implementation

The Government has established specific timelines for the gradual implementation of mandatory E-Invoicing across different types of transactions. These deadlines are designed to provide adequate time for businesses to adapt their invoicing systems and processes accordingly.

Therefore, starting from 1 July 2022, both resident and non-resident taxpayers who are registered for VAT must adhere to the new national E-Invoicing system, RO e-Factura, for conducting all transactions with the government (B2G) and for Business-to-Business (B2B) transactions involving high-risk fiscal products as outlined in Annex OPANAF 12.

These high-risk products include vegetables, fruits, nuts, alcoholic beverages, mineral products (such as natural mineral water, sand, and gravel), clothing, footwear, and new constructions.

From 1 January 2024 onwards, taxable persons resident in Romania, registered or not for VAT purposes in Romania, are required to submit the invoices through the RO E-Invoicing system for B2B transactions/public institutions (other than B2G), which have the place of supply on the Romanian territory, regardless of whether the recipients are registered into the RO E-Invoicing Register or not. The obligation to submit the invoices through RO E-Invoicing system for B2G (Business-to-Government) was already implemented since 1 July 2022.

Furthermore, starting from 1 January 2024, non-established taxable persons registered for VAT purposes in Romania are required to submit the invoices through the RO E-Invoicing system for all B2B and B2G transactions which have the place of supply on the Romanian territory, regardless of whether the recipients are registered in the RO E-Invoicing Register or not.

Exemptions from the above-mentioned regulation are provided:

for the exports and for intra-Community supplies of goods performed in Romania,
for the supply of goods and services to the non-established taxable persons that are not registered for VAT purposed in Romania,
for the supply of goods and services invoiced through the simplified invoices according to Romanian tax regulations (i.e., for invoices amounting less than 100 EUR, including VAT) and
the supply of services that are not subject to Romanian regulations for invoicing (e.g., intra-Community supply of services).

For the period 1 January until 30 June 2024, the aforementioned suppliers are also required to send the invoices to the recipients in accordance with the Tax Code, unless both (the supplier or provider and the recipient) are registered in the RO E-Invoicing Register.

The E-Invoices’ communication is performed through the Tax Authorities’ platform by using a standard XML format. The XML file should respect the European standard EN 16931 and the national rules RO_CIUS, as provided by the specific national legislation.

Submission Deadlines

The deadline for submitting the E-Invoices XML format through the RO E-Invoicing system is five calendar days from the date of issuing the invoice, but not later than five calendar days from the deadline provided for issuing the invoice.

Contraventions and fines for non-compliance

According to the latest extension of the deadline (OUG 30/2024), for not complying with the obligation of submitting an invoice in max. five calendar days, the fines will be applied to the aforementioned suppliers starting 1 June 2024, depending on the taxpayer’s classification. The fines are between RON 1,000 and RON 10,000. The fines for late transmission of the invoices shall be applied only once in a month.

Starting 1 July 2024, both the supplier / issuer of the invoice and the recipient are sanctioned for not complying with the obligation to use RO e-Factura for issuing / receiving invoices. The fine is of 15 percent of the total amount of the relevant invoice.

Improving the Technology Infrastructure

Continuous improvements are being made to support the E-Invoicing processes. This includes the development of secure digital platforms to facilitate the exchange of electronic invoices between businesses and government entities.

Monitoring Compliance

The Government is implementing robust monitoring to ensure compliance with mandatory E-Invoicing regulations in Romania. This involves regular audits, inspections and penalties for non-compliance to deter fraudulent practices and promote tax integrity.

EU Standards Alignment

Romania is currently in the process of harmonising the E-Invoicing regulations with the European standards and regulations and align to best practices and procedure.