Draft legislation published for Jan 2024 near real-time reporting of B2B invoices; full B2B pre-clearance e-invoicing July 2024
Draft legislation has been issued for the launch of B2B electronic invoicing for resident and non-resident businesses. There is a two-stage launch:
- Jan 2024 – it is proposed to establish an near real-time regime for reporting invoices between January 1 and June 31, 2024, without the application of penalties until April 2024. This will require digital reporting of invoices within 5 working days of issuance. This relates only to domestic supplies – exports and intra-community supplies are not required.
- July 2024 The full, pre-clearance electronic invoice submissions via the eFactură platform will go live July 2024.
The Romanian e-invoicing regime will require pre-clearance sending of the invoice in CIUS_RO format – (UBL 2.1 or CIN) format to the government’s portal for clearance. This will include basic validation checks on the information and format of the e-invoice. However, this requirement may be dropped from January 2026 to comply with ViDA’s proposed requirement of no government pre-clearance checks from 2028.
Romanian SAF-T monthly transaction reporting was launched in January 2022 by the Romanian tax authority, ANAF.
Romania’s ANAF (Agenției Naționale de Administrare Fiscală – National Agency of Fiscal Administration) has already imposed in July 2022 B2B e-invoicing in fraud-sensitive sectors, including:
- Vegetables, fruits, roots, edible tubers, other edible plants
- Alcoholic beverages
- Mineral products
- New construction
- Clothing and footwear
27 July update – Council of the European Union approves application for Romanian e-invoicing for 1 January 2024
The Council of the European Union has approved the European Commission’s proposal to permit Romania to mandate domestic VAT electronic invoicing from 1 January 2024. This permission was required to allow Romania to derogate from Articles 219 and 232 of the EU VAT Directive which restrict the use of government mandated e-invoicing. Romania applied for this permission in 2022. Its original plan was to launch in July 2022.
Separately, the EU is proposing to remove this requirement to seek its approval to deviate from the EU VAT Directive on e-invoicing from 1 January 2023. This is part of VAT in the Digital Age reforms.
B2G e-invoicing is mandatory from 1 July 2022 using the RO eFactură protocol.
Romania is following the Italian SdI pre-clearance model, including Continuous Transaction Controls (CTC), which has proven highly successful at cutting the VAT Gap – the difference between forecast and actual indirect tax revenues. Romania has the EU’s highest VAT Gap at 34%.
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Pre-clearance Romanian e-invoicing – but will end 2026
The increasing global e-invoice trend is for live-reporting or draft sales invoices being first sent to the tax authorities for recording and basic validation checks. This approved invoice is then sent to the customer – either by the tax authorities (Italy) or the taxpayer with a special digital signature or QR Code. In some cases, an approved e-invoicing agent is required and it this is the route France e-invoicing will likely take from March 2026. This includes the following steps:
- The vendor issues an XML invoice through the RO e-invoicing platform
- Minimal validation and information requirement checks are performed. In the event of a failure, the vendor is notified to make a correction and resubmit.
- The Ministry of Public Finances will certify the invoice with its digital signature
- The invoice is sent to the customer, which is considered the tax point of the invoice for VAT purposes
RO e-transport reporting July 2022
In addition to e-invoicing, Romania is also introduced an electronic movement of goods register. This is similar to Hungary and India’s e-Way Bill.
e-transport starts 1 July 2022 with mandated journeys for high-risk goods (see above) having to be registered in accordance with API schema submission. Any movements must first be registered with ANAF via and XML document.
EU Digital Reporting Requirements and e-invoicing by 2028
EU VAT in the Digital Age reforms include a channel for harmonised Digital Reporting Requirements (DRR) and Continuous Transaction Controls (CTC) by EU states. This grew from the 2020 Tax Package proposals for a fairer and more efficient EU tax regime.
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