Navigating the New Era of e-Invoicing in Romania: A Quick Guide for Finance Professionals

In the dynamic world of finance, staying abreast of regulatory changes is crucial. A significant shift is underway in Romania, where the government is implementing a mandatory e-invoicing system. This change, effective from January 2024, is set to revolutionize how businesses handle invoices, aligning with the broader European trend towards digital fiscal compliance.

Understanding the Romanian e-invoicing mandate

The essence of this transformation lies in the transition to electronic invoicing for business-to-business (B2B) transactions. The Romanian authorities have developed a centralized platform, RO e-Invoice, to facilitate this process. From January 2024, all companies are required to issue and receive invoices electronically through this system, adhering to the RO_CIUS format that complies with European standards (EN 16931-1).

Key milestones and timelines

• First phase (January 1, 2024): All companies begin reporting B2B domestic transactions
• Grace period (January 1, 2024 to March 31, 2024): A transitional phase allowing companies to adapt without penalties to the e-reporting mandate.
• Enforcement:(from July 1, 2024): Penalties ranging from approximately 1,000 to 2,000 EUR will be levied on non-compliant large entities.
• Second phase, full Implementation of the e-invoicing mandate (July 2024): Electronic invoicing becomes the sole recognized format.

Legislative landscape

The shift to e-invoicing in Romania is part of a larger European movement to enhance tax compliance and modernize fiscal systems. It stems from various legislative actions, including the adaptation of Directive 2014/55/EU in 2020 and subsequent laws and ordinances refining the structure and enforcement of the e-invoicing system.

Penalties for non-compliance

Companies failing to comply with the e-invoicing requirements will face significant fines. These fines are tiered based on the size of the company and the nature of the non-compliance, emphasizing the government’s commitment to ensuring full adherence to the new system.

Platform and operational framework

The RO e-Invoicing platform, operational since November 2021, serves as the cornerstone of this mandate. It supports the exchange of invoices in a standardized XML format.

Monitoring and compliance

The Romanian Ministry of Finance is actively monitoring the implementation, ensuring seamless integration with existing financial systems and compliance with European standards. The e-Transport system, introduced to track high-risk goods, is an example of the government's proactive approach to reducing tax evasion and enhancing fiscal transparency.

Implications for businesses

For finance professionals and businesses, this mandate necessitates a strategic re-evaluation of invoicing processes. Companies must ensure their systems are compatible with the RO e-Invoice platform and that they can generate invoices in the required format. The adoption of this system also offers potential benefits, including streamlined invoice processing, reduced manual errors, and enhanced fiscal compliance.

Stay informed and prepared

The mandatory e-invoicing system in Romania marks a significant step towards digital transformation in financial processes. As the deadlines approach, companies must gear up for this change, ensuring compliance to avoid penalties. This move not only aligns Romania with European standards but also promises enhanced efficiency and transparency in business transactions. For finance professionals, staying informed and prepared is key to navigating this new era of digital invoicing.

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