The Evolution of E-Invoicing in Romania: Key Trends for 2024

Romania is currently undergoing a massive technological change in electronic invoicing. The Romanian Finance Authority has played an enormous role in ensuring that e-invoicing is mandatory for B2B and B2G transactions.

The government has implemented e-invoicing in Romania over a short period to foster economic growth, enhance operational efficiency, and modernize its administrative processes. It also plans to extend the e-invoicing system to B2C transactions in 2025.

Romania uses an e-invoicing platform called RO e-Factura, also known as ANAF. The RO was launched in November 2021 to facilitate the submission of invoices for B2B and B2G transactions.

Romania is quite strict on using the national invoicing platform to submit e-invoices. Both resident and non-resident VAT-registered businesses in Romania have to use the RO e-Factura platform or face a penalty of 15% of their transaction value.

In this post, we’ll discuss when e-invoicing became mandatory in Romania, the penalties for non-compliance, and the e-invoicing requirements in Romania. We’ll also explain the electronic invoicing process and offer tips to help your business adapt.

Is electronic invoicing mandatory in Romania?

Electronic invoicing is mandatory in Romania for B2B and B2G transactions for resident and non-resident VAT-registered businesses. The Romanian Finance Authority conducts monthly compliance reviews, keeping businesses on their toes.

B2G

According to Law 139/2022, released on 17 May 2022, B2B transactions in Romania became mandatory on 1 July 2022. All businesses transacting with Romanian public administrations must use the e-Factura platform and submit invoices in UBL 2.1 format.

Law 139/2022 also created a legal framework that operationalized the (RO e-Factura) as the national e-invoicing system. It established the requirements and rules regarding an e-invoice structure according to the European Commission's e-invoicing standards.

B2B

The Romanian government released the B2B e-invoicing mandate law as a fiscal-budgetary measure to enhance Romania's long-term financial sustainability. Its implementation began on 1 January 2024, but businesses had a grace period before penalties were enforced starting June and July 2024.

The Law 296/2023 targeted Romanian residents and non-residents registered in Romania for VAT purposes. Depending on their size, businesses that fail to comply with the new e-invoicing regulations may face fines ranging from EUR 200 (1,000 RON) to EUR 2,000 (10,000 RON).

Those who fail to use the RO e-Factura system risk facing a 15% fine for every total invoice value transacted outside the platform. The e-invoicing mandate requires business owners to issue electronic invoices to the government’s portal for clearance and to get a digital stamp.

B2C

Even as the government continues to enforce the recent B2B e-invoicing mandate, plans are underway to extend the electronic invoicing system to B2C transactions.

In June 2024, the Romanian Ministry of Finance published new legislation to expand the e-invoicing system to include B2C transactions. The voluntary phase began in July 2024, and mandatory B2C e-invoicing is expected to take effect on 1 January 2025.

Current requirements for e-invoicing in Romania

Here, we’ll discuss the requirements for issuing, receiving, and archiving an electronic invoice in Romania.

Platform (RO e-Factura)

The Romanian Ministry of Finance facilitated the establishment of the RO e-Factura system, which was launched in November 2021. All B2B and B2G transactions must be conducted on the e-Factura platform, while B2C transactions are optional but set to be mandatory starting January 2025.

This system generates electronic documents per the RO_CIUS specifications, which are used for invoices compliant with the European Union standard EN 16931.

It features real-time monitoring and data encryption that guarantees data security.

After a transaction, business owners must submit an e-invoice within 5 working days for validation. The Romanian Ministry of Finance verifies the invoice and makes it available for both parties to download on the platform for 60 days.

Format

The Romanian e-Factura generates documents in the UBL 2.1 format, which is common among EU member states for sharing electronic documents. The documents are issued as XML documents, which are readable by humans and machines.

Electronic signature

In Romania, the issuer and recipient of electronic invoices are not required to generate and embed a digital signature on an electronic document. However, after validation, the RO e-Factura automatically applies the Ministry of Finance’s signature to the document.

The signature is the final element of the document, indicating that no changes have been made to its content.

Mandatory for B2B and B2G transactions

E-invoicing is mandatory in Romania for all resident and non-resident economic operators and taxable persons involved in B2B and B2G transactions. This includes any public administration that issues and receives invoices and private companies dealing with cross-border transactions.

By January 2025, it will also become mandatory for B2C transactions, ensuring that businesses across all sectors comply with the national electronic invoice system (RO e-Factura) for VAT compliance and digital transformation.

Archiving

After being verified by the tax administrations, the document is available on the platform for up to 60 days, allowing users ample time to download the invoice. Senders and recipients must download and archive electronic documents for at least 10 years.

E-invoicing process in Romania

The e-invoicing process is not daunting, as there is a common platform for all types of transactions. Here is a detailed step-by-step guide on how to issue an invoice electronically in Romania, starting from registering on the RO e-Factura to archiving:

Step 1: Register on the Romanian Virtual Private Space (SPV)

To access the RO e-Factura, new users must register on the Virtual Private Space (SPV), an electronic system that allows taxpayers to exchange documents with the tax authorities.

Existing businesses must be registered on the SPV as it became mandatory on 1 March 2022 for tax compliance. The Romanian tax authorities only accept tax documents electronically through the SPV, which helps curb tax evasion.

Step 2: Complete and submit the necessary forms

After creating an SPV account for your business, you must complete and submit form 084 to the National Agency for Fiscal Administration (ANAF) when registering in the RO e-Factura. The registration is approved on the first of the month after submitting the form.

Step 3: Create your electronic invoice

You can use your business ERP system to create an invoice within the set time limit of 5 days after the transaction.

Alternatively, you can get help from a reliable third-party e-invoicing provider like Storecove. They will help you generate invoices in the required XML format, reducing the chance of invoice rejection.

Electronic invoicing service providers help you eliminate the risk of fines for non-compliance by staying updated with Romanian government updates about electronic invoicing processes. They also make international transactions easier.

Step 4: Submit your invoice to the RO e-Factura for validation

After creating your invoice, submit the data to the RO e-Factura in XML format for validation. If you use a third-party service provider, they check and submit a compliant document on your behalf.

The tax authorities check the data and approve or reject it. If approved, the system automatically generates electronic signatures and embeds them on the document.

After submitting an invoice to the RO e-Factura, the process may be smooth, or one of two other things may occur, including:

RO e-Factura detects an error

The Romanian national electronic invoicing system does not consider electronic invoices sent with structural or formatting errors. The system sends the invoice issuer an XML file with the errors and an electronically sealed ZIP file detailing them.

The sender must rectify the errors in the draft provided and upload the correct XML file.

Customer rejects invoice

If a customer rejects an invoice due to quality or other individual reasons, the seller must issue a credit note accounting for all goods sold. If the transaction still happens, the correct invoice must be reissued and accepted by the customer.

Step 5: Download and archive

The issuer and recipient have up to 60 days to download and store the document for at least 10 years. Such financial documents often come in handy during audits that may occur even more than five years from now.

How businesses can prepare for the e-invoicing changes in Romania

In less than 5 years, there has been a significant change in electronic invoicing processes in Romania. Several mandates have been implemented, and some are still underway. Here’s a list of things businesses can do to prepare for these changes:

Review your current position regarding legal compliance

Before anything else, you must know where you stand, considering the already implemented mandates for B2G and B2B e-invoicing. Conduct a thorough audit of your technical and human internal resources.

Also, collect critical information, such as the average monthly invoices your company sends and receives, and compare such data to your dependency on your current e-invoicing solutions.

This will help you understand when to scale the system, when and who to hire, and any training your current employees may require.

Stay ahead of the national electronic invoicing system developments

Romania has been continuously updating its electronic invoicing system in recent years. Some business owners delay and hope the government grants a grace period for implementation.

However, knowing these regulations as they are published can help you stay ahead of the changes. You can subscribe to email newsletters from reliable electronic invoicing service providers like Storecove to get a notification as soon as something new comes into play.

Think long-term

While adhering to the upcoming e-invoicing changes in Romania is essential, remember that these won’t be the last regulatory changes your business will encounter. As the e-invoicing industry grows, the requirements will only become more complex.

The best way to prepare for the future is to have a scalable invoicing solution that can adapt to your tax and accounting information needs. Businesses without adequate in-house tech experts should outsource from reliable service providers.

Partner with a reliable e-invoicing service provider

Finding reliable e-invoicing service providers is an excellent way for businesses to adhere to government regulations and avoid legal cases and lawsuits. Companies like Storecove have adequate experience helping businesses generate electronic documents that meet legal requirements.

They allow business owners to focus on more business-critical issues while they handle the tedious task of ensuring no invoice is rejected by the RO e-Factura.

Takeaway: Ensure seamless compliance with the e-invoicing mandate in Romania to avoid penalties

As Romania continues its digital transformation with the mandatory electronic invoicing system, businesses must prioritize compliance to avoid penalties and fines. Understanding the role of the national electronic invoice system (RO e-Factura) helps reduce errors and ensure smooth transactions.

Investing in reliable ERP systems and partnering with expert e-invoicing providers can reduce manual processes and enhance operational efficiency.

For businesses looking to navigate the process, partnering with a service provider like Storecove can simplify the entire process. Storecove ensures that your invoices meet legal requirements and keeps your business ahead of regulatory changes. Contact Storecove today to help your business stay compliant and efficient in Romania.

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