E-invoicing Romania – penalties from June and July 2024 for B2B sales

Romania, like many other countries, is undergoing a revolution in the way invoices are issued. As of January 1, 2024, new legislation regarding e-invoicing has come into force, introducing the obligation to send invoices through an electronic system for all B2B transactions with entities domiciled in Romania. This change is of fundamental importance for businesses operating in the Romanian market, as well as those conducting transactions with Romanian entities.

Electronic invoices in Romania – new regulations in brief

• Effective date: Since January 1, 2024, e-invoicing has become mandatory for all companies domiciled in Romania and for non-residents registered for VAT purposes in Romania.
• Invoice submission deadline: Electronic invoices must be submitted to the e-Invoice RO system within 5 calendar days from the date of issuance. Failure to comply with this deadline incurs specified penalties.
• Transitional period: From January 1, 2024, to May 31, 2024, a transitional period in in effect during which no penalties are imposed for failure to submit invoices. At first, the transitional period was set to conclude on March 31st, however, the Ministry of Finance announced its prolongation just a few days before the deadline.
• Penalties for violations: From June 1, 2024, fines may be imposed for non-compliance with the deadlines for sending e-invoices, depending on the taxpayer category:
• from 5,000 RON to 10,000 RON for large taxpayers;
• from 2,500 RON to 5,000 RON for medium taxpayers;
• from 1,000 RON to 2,500 RON for other legal entities and individuals.
• Penalty for the client and the seller: Since July 1, 2024, issuing invoices outside the e-invoicing system or receiving invoices outside this system will be subject to a fine equal to 15% of the total invoice value for both the seller and the client.

Who is covered by the new regulations?

All businesses, regardless of tax status, are required to comply with the new e-invoicing regulations in Romania. This obligation applies to both entities domiciled in Romania and non-residents registered for VAT purposes in this country.

E-invoicing in Romania is mandatory only for local B2B sales. This means that only invoices issued from a Romanian VAT number to another Romanian VAT number are subject to the new e-invoicing requirements. Other types of transactions, such as intra-community acquisitions and supplies of goods, exports, or services, are still not subject to these new requirements.

How does the e-invoicing process work?

Invoices must be submitted to the e-Invoice RO system in a standardized XML format. There are two main methods for submitting invoices: through integration of the sales system with the ANAF system or manually, by sending the XML file to ANAF within 5 working days from the invoice date. Invoices are stored for 60 days on the ANAF platform, but both the sender and the recipient are required to keep them for at least 5 years.

However, there is an issue with the Romanian administrative system ANAF, which is available only in Romanian, which may pose a challenge for integration with Polish systems. It’s also worth noting that manually adding invoices to the system requires a qualified electronic signature.

Summary

The new e-invoicing regulations in Romania have significant consequences for all companies operating in the Romanian market, as well as those conducting transactions with Romanian entities. They impose the obligation to send invoices through an electronic system for all B2B transactions with entities domiciled in Romania. Attention should be paid to the deadlines for sending invoices, penalties for non-compliance, and the coverage of all business entities, both those domiciled in Romania and non-residents registered for VAT purposes in this country. Since e-invoicing is becoming an integral part of operating in the Romanian business market, familiarizing oneself with the new regulations and adapting to them will be crucial for maintaining tax compliance.

For any questions or additional information, we encourage you to contact our team of experts, ready to provide assistance and support: Contact us – amavat®.