Tax digitalization is gaining popularity within the EU, as proven by the “VAT in the Digital Age” directive, which you can read more about in this article. With the aim of controlling tax fraud, tightening the VAT gap, and reducing administrative costs, more countries are turning to tax digitalization. Poland plans on introducing mandatory e-invoicing (KSeF) in July 2024, for most taxpayers. Romania is following in the footsteps of Poland with the introduction of RO e-Factura with the beginning of 2024 for all B2B transactions.
How does the Romanian e-Factura work?
The RO e-Factura (Romanian e-invoice) is a tool for electronic invoicing, through which the tax authorities, implicitly the National Agency for Fiscal Administration (ANAF), decided to lay the foundations for fiscal digitization in Romania.
After issuing an invoice, it is sent in electronic format to ANAF SPV - Virtual Private Space. After verifying and validating information contained in the invoice, ANAF signs and confirms its registration. After validation, the invoice becomes official and cannot be modified, deleted, or cancelled.
Can invoices uploaded to RO e-Factura be corrected?
Corrections related to products, quantities, or prices, as well as adjustments related to the reception of products by the customer, may be done by issuing a new invoice.
In this case, a new invoice is issued, referring to the initial invoice, which will modify some positions and possibly add new positions to the document. This newly issued invoice will be sent in RO e-Factura as a "Credit note" or "Correction invoice.”
Who must use the RO e-Factura system?
Currently, the system applies to:
- B2G (Business to Government) - reporting of all purchases of goods/services made by the state from privately-owned companies.
- B2B (Business to Business) - targets traders (legal entities) making deliveries of goods classified as having a high risk of tax evasion.
Starting with January 1st, 2024, the e-Invoice system will apply to all taxpayers, taxable persons established in Romania, whether they are registered for VAT purposes, in B2B transactions carried out on Romanian territory. Practically, all invoices issued and received regarding B2B transactions carried out on the territory of Romania will be sent and received in the ANAF integrated system.
This legal provision also applies to non-residents taxable persons registered for VAT in Romania.
Exempted from these legal provisions are supplies of VAT-exempt goods provided for in art. 294 para. (1) lit. a) and b) and para. (2) of the Fiscal Code. Therefore, taxpayers will not report transactions not carried out strictly on Romanian territory, such as exports, imports, or intra-community purchases/supplies.
Taxable persons established in Romania, regardless of whether they are registered for VAT purposes, have the obligation to submit invoices issued in RO e-Factura system between January 1, 2024, and June 30, 2024, regardless of whether the recipients are registered in the RO e-Invoice Register.
During this period, the suppliers mentioned above will be obliged to send the issued invoices to the recipients either by email or in physical format, except for situations in which both the supplier and the recipient are registered in the RO e-Invoice Register.