Enhancements and Extensions: The Latest Updates on Romania's e-Reporting System

The latest developments surrounding e-reporting* for Romania's e-Invoice system underscore the government's unwavering commitment to modernizing tax administration and fostering a conducive environment for business operations. Recent developments, including the extension of the penalty-free period for e-reporting, the introduction of user-centric enhancements, and the implementation of robust regulations, signify Romania’s dedication to driving digital transformation while ensuring compliance and accountability across the tax landscape.

Extension of penalty-free period

In a significant move aimed at fostering transparency and collaboration with entrepreneurs, the Romanian Government has extended the penalty-free period for taxpayers integrating into the RO e-Invoice system. Initially set to expire, this grace period now extends until May 31, 2024, providing taxable entities with additional time to streamline processes and adapt to the new requirements.

Minister of Finance, Marcel Bolos, elucidated the decision, emphasizing the government's dedication to facilitating a seamless transition for taxpayers. "Since the inception of the RO e-Invoice system, our focus has been on fostering close and transparent collaboration with entrepreneurs," stated Minister Bolos. "The extension of the penalty-free period (for e-reporting) reflects this commitment, allowing taxpayers more time to acclimatize to the new system without the threat of sanctions."

Enhancements to the e-invoice system

Minister Bolos introduced two pivotal enhancements to the e-Invoice system, designed to elevate user experience and functionality. Firstly, the application now boasts the capability to prefill user information based solely on the Tax Identification Number (CUI), streamlining the invoicing process and minimizing manual data entry. Additionally, the system now offers an English-translated version for non-resident taxpayers registered for VAT purposes, ensuring accessibility and compliance for all users.

Collaborative approach with stakeholders

The Ministry of Finance's dedication to refining the e-Invoice platform is evident through ongoing engagements with stakeholders from the business community. These collaborative efforts have been instrumental in identifying areas for improvement and ensuring that the system remains aligned with the needs of taxpayers. The extension of the penalty-free period serves as a testament to the government's responsiveness to feedback and commitment to facilitating a smooth transition to the e-Invoice system.

Introduction of simplified version of the application

Simultaneously, the Ministry of Finance has introduced a simplified version of the e-Invoice application, aimed at enhancing accessibility and usability for taxpayers nationwide. Equipped with an intuitive interface and streamlined functionalities, the updated version empowers users to generate invoices swiftly and accurately, ensuring compliance with tax regulations.

Regulatory provisions on excises

Furthermore, recent normative acts encompass provisions pertaining to excises, specifically targeting the marketing of tobacco products intended for inhalation without burning. In a bid to mitigate illegal trade and safeguard public health, the act introduces stringent regulations governing the marking and distribution of these products. By mandating the storage of such products in authorized premises, the government aims to enhance transparency and oversight within the distribution chain.

Take action now: stay informed on e-invoicing compliance

*The e-reporting referred to here pertains to the reporting obligations of taxpayers to submit invoices in XML format to the RO e-Factura platform. This requirement applies to both Romanian established taxpayers and non-established taxpayers in Romania, beginning January 2024. The second stage of the Romanian B2B e-Invoicing mandate will start on July 1, 2024.