Romania - Latest Updates on E-Invoicing for B2B

The e-invoicing system in Romania was established and has been in operation since 2022, but it was only mandatory for invoices issued by businesses concerning state entities (B2G). However, on December 14, 2023, the Romanian Government adopted Emergency Ordinance no 115/2023, which introduced new rules on e-invoicing, among other fiscal measures.

New Regulatory System

Following the changes adopted by the Romanian Government, the e-invoicing (RO e-Factura) system became mandatory for all B2B transactions on January 1, 2024.  Taxable persons should report invoices through the RO e-Factura system within 5 calendar days starting from the day of issuance or within other deadlines if defined differently according to the Fiscal Code.

From July 1, 2024, B2B invoices should be sent only through the RO e-Factura system. The Ordinance further states that transactions covered by the issuance of simplified invoices, supplies of goods and services made to taxable persons who are not established nor registered for VAT purposes in Romania, and the provision of services for which the issuing of the invoice is not subject to the invoicing rules applicable in Romania are exempt from e-invoicing.

Starting from July 1, 2024, taxable persons who are in the scope of new regulations and those who do not comply with the new rules can expect a penalty equal to 15% of the total value of the invoice. Failure to transmit invoices through the Ro e-invoicing system within 5 calendar days from the issuance date will result in fines of RON 1,000 to RON 10,000, depending on the taxpayer type:

• from RON 5,000 to RON 10,000  for legal entities classified as large taxpayers,

• from RON 2,500 to RON 5,000 for legal entities classified as medium taxpayers,

• from RON 1,000 to RON 2,500  for other legal entities and natural persons.

Conclusion

As the date for mandatory transmission of invoices through the RO e-Factura system regarding B2B transactions approaches, all businesses registered for VAT in Romania, domestic and foreign, should ensure compliance with current rules and regulations. Penalties for those not complying with the rules can contribute to significant financial losses.

Source: The Romanian Government adopted Emergency Ordinance no. 115/2023, 1stopVAT