Romania: Mandatory E-Invoicing for B2C Transactions

On June 18, 2024, the Romanian Ministry of Finance (MoF) issued a press release announcing significant changes to the country's tax regulations. These changes will enhance the fight against tax evasion and improve tax collection accuracy and efficiency.

The MoF proposes changes and additions through a draft normative act to manage and implement the national RO e-invoice system, fiscal electronic marking devices, and the exclusion of excise duties from the procedure for restructuring budgetary obligations.

Changes to the National RO e-Invoice System

Based on the new legislation, businesses can use the RO e-invoice system for B2C transactions starting July 1, 2024. However, beginning January 1, 2025, all businesses issuing consumer invoices must report them via the RO e-invoice system. 

Associations, foundations, and individual farmers who apply the special regime for farmers will be temporarily exempted from using the RO e-Invoice system until June 30, 2025, to adapt to the system. They can opt to use the system before this date, becoming mandatory for all these categories from 1 July 2025.

Businesses issuing non-VAT-related invoices and entities such as diplomatic missions or consular offices, other international bodies, and the armed forces of NATO Member States are exempt from the mandatory use of the RO e-invoice system. However, these entities can choose to use the electronic invoicing system if they wish to do so.

Further, suppose the beneficiaries do not receive the invoices through the RO e-Invoice national system within the stipulated period for the deliveries of goods or the provision of services paid at the time of delivery/provision. In that case, they can notify the competent tax authorities.

As Minister Marcel Boloș explained, these changes are also in line with the ongoing discussion at the EU level about mandating electronic invoicing based on the European standard for both B2B and B2C transactions.

Conclusion

With more and more countries worldwide introducing mandatory e-invoicing for B2B and B2C transactions and the EU's effort to establish further a real-time digital reporting system based on e-invoicing, proposed changes by Romanian MoF seem like a logical step in the right direction. In addition, these measures represent a significant part of the National Agency for Fiscal Administration (ANAF) digitalization efforts.

Source: The Romanian Ministry of Finance