The taxpayers subject to e-invoice should acknowledge that on January 1, 2024, the electronic invoice (namely “e-invoice”) will become mandatory starting from January 1, 2024, per Law 296/2003 adopted and published in the Official Gazette on 27.10.2023
The scope of this regulation will apply to all companies on the territory of Romania, including B2B, and B2G transactions as well as transactions made by non-residents.
E-Invoice is an electronic system that allows uploading, storing, and downloading invoices, by using the entities‘ SPV through the ANAF platform. The implementation of the e-invoicing system at the national level is not only to digitize the invoicing method but more, it is also considered a tool for preventing and combating tax evasion and monitoring in real-time the invoices issued between the economic operators.
How will the e-invoice process differentiate itself from the physical invoices?
The e-invoice is not equivalent to the online invoice, in other words, a PDF invoice sent to the customers by e-mail does not represent an electronic invoice. The e-invoice does not only mean issuing invoices in electronic format. Still, it involves the generation of the XML file that contains mandatory elements, which is transmitted to ANAF, using the SPV account. The specific elements of e-invoices are the timely stamp and the electronic signature.
Thus, physical invoices will disappear, as well as those in Excel / Word or handwritten ones, and the original invoice is considered the XML type file accompanied by the electronic Ministry of Finance seal.
What do the companies need to do before the implementation date?
⮚ To ensure that the entities have the SPV.
⮚ Both the issuer and the recipient of the invoices must register on the RO e-Factura platform. Registration will be made starting from the 1st of the month following the exercise of the option. The registration is optional only until December 31, 2023, and will become mandatory from January 1, 2024.
⮚ To get an invoicing program integrated with RO e-Factura that allows the entities to send invoices automatically, OR
⮚ To continue to use the invoicing program, which they are used to, but ensure this is an integrated program with the national electronic invoicing system RO e-Factura.
What are the main steps to issue an e-invoice on the RO e-Factura platform?
STEP 1 – The entities issue the invoices in electronic format according to the predefined XML format.
STEP 2 – After generating the XML file, the entities upload it to the RO e-Factura platform, either:
⮚ Manually, by accessing the SPV and adding them individually, or
⮚ Automatically, from the invoicing program if it is integrated with RO e-Factura.
STEP 3 – If the invoices comply with the required standards and format, the seal of the Ministry of Finance is applied, and the invoice is sent to the recipient. Within 5 working days from the issuance date of the e-invoices, the entities should upload the e-invoices on the RO e-factura platform.
STEP 4 – The recipient firm is notified about the received invoice and informed that this can be downloaded from the SPV.
Non-compliance with e–Invoice requirements, such as late or non-registering into the RO e-Factura system, incorrect or non-submission of the e-invoices on the RO e-Factura system will trigger the fiscal authorities not only the quantitative risk factors translated into fines and penalties but more importantly qualitative risk factors, such as the refusal to payment of the e-invoices by their business partners, interpreting as non – original the issued invoices on the paper with the corresponding implications as consideration of non-deductible VAT for the beneficiary, etc.
TGS Romania team can offer you support in designing the electronic invoicing process, and also in preparing the e-invoices for the entities, and then following the submission steps.
We advise entities, especially those who are required by 01/01/2024 to implement their e-invoice to plan their implementation in due time and diligently to avoid unnecessary bottlenecks and delays in meeting the deadline.
For the entities, which are already in the process of implementation or in the final stage we can offer the support on testing the e-invoicing functionality.
For more details and advice on this important topic, don’t hesitate to get in touch with us:
Mihaela Rosu, Partner BPO & Tax TGS Romania firstname.lastname@example.org
Cristian Faica, Senior Tax Manager TGS Romania email@example.com