Implementation of Mandatory E-Invoicing in Romania: Key Dates and Regulatory Guidelines
On 25 July 2023, Romania received authorization through EU Council Implementing Decision (EU) 2023/1553 to enforce mandatory e-invoicing for taxpayers within its borders, effective from 1st January 2024. This significant development aims to streamline business transactions and enhance fiscal control.
Key Dates and Phases
Initial Obligations (1 January 2024)
Taxable individuals in Romania, irrespective of VAT registration, must utilize the Romanian e-invoicing system for B2B transactions within Romania, excluding exports and intra-community deliveries. Recipients’ enrollment in the Romanian e-invoice register is no longer a determining factor.
Transition Period (1 January 2024 – 30 June 2024)
The Draft Law on the Budget Fiscal Measures, introduced on 19 September 2023, outlines specific requirements applicable during the transition period. Businesses should familiarize themselves with these guidelines for smooth adaptation.
Full Implementation (1 July 2024)
The e-Factura system is slated to be fully operational by 1 July 2024, marking the cessation of the requirement to send ‘paper’ invoices. This signifies a complete shift towards digital invoicing.
Scope of Compliance
Mandatory Submission Groups
The following entities must submit invoices through the Romanian e-Factura platform:
- Romanian established economic operators (including those not VAT registered) for B2G and B2B supplies.
- Non-established businesses VAT registered in Romania for B2B supplies taxable in Romania.
Exemptions
Transactions related to the export of goods are exempt from the e-Factura reporting requirement.
Detailed Reporting Guidelines
January to June 2024
Suppliers are obligated to send invoices in the applicable format during this period. Exceptions apply only when both the supplier and recipient are registered in the Romanian e-Factura Register.
Submission Deadline
Invoices must be submitted in the national system within 5 working days of issuance or no later than 5 working days from the deadline stipulated in Law no. 227/2015.
Penalties for Non-Compliance
Applicable Fines
Fines for non-compliance vary based on taxpayer category:
- Large taxpayers: from 5,000 lei to 10,000 lei.
- Medium taxpayers: from 2,500 lei to 5,000 lei.
- Other legal entities and natural persons: from 1,000 lei to 2,500 lei.
Penalty-Free Period
No penalties will be imposed for non-compliance during the period 1 January – 31 March 2024.
The mandatory e-invoicing initiative in Romania presents a transformative shift in business processes. Adhering to the outlined guidelines is crucial for a seamless transition and avoidance of penalties. Businesses are urged to stay informed and adapt their invoicing practices accordingly.
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