Romania B2C for e-invoicing: Who and When?

General Background

Romania has been making strides in the e-invoicing world since 2020. The Romanian Ministry of Public Finance first mandated the use of e-invoicing and e-reporting for B2G transaction in July of 2022. E-invoicing was thereafter mandated for B2B transactions in July of 2024. Now, B2C transactions will be entering the scope of transactions that are to conform with the e-invoicing and e-reporting requirements.

In June of 2024 the Ministry of Finance issued Emergency Ordinance 69/2024, which extends the e-Invoicing system. The legislation provides for the voluntary adoption of e-invoicing for B2C domestic transactions, between 1 July 2024 and 31 December 2024, however, starting on 1 January 2025 e-invoicing for B2C transaction will be mandated. 

Sending and Receiving E-invoices in Romania

The Supplier should submit the e-invoice in XML CIUS_RO format to the Romanian electronic platform, RO eFacturӑ, using the SPV. The basic sematic model to be complied with is prescribed by the European standard, EN 16931.

The supplier is required to utilise a digital certificate (signature) to attest to the invoice, identifying the supplier. The e-invoice is thereafter transmitted to the RO eFacturӑ system, wherein the system assigns the invoice a Unique Identification number, that is to be utilised as a reference in the process. The Romanian government makes use of the Clearance Continuous Transaction Control model, with near real-time validation by Agenției Naționale de Administrare Fiscală (ANAF).

If the file is deemed compliant with the requirements, an electronic seal is applied to the file by the Ministry of Finance. The seal certifies the receipt of the e-invoice in the national electronic invoice system, and only after the seal has been applied will a notification be sent to the recipient.

Note: The original copy of the e-invoice is considered the XML file received with the electronic seal of the Ministry of Finance.

Implementation Timeline

• 1 July 2022: B2G E-Invoicing and B2B e-invoicing for High Fiscal Risk products became mandatory.
• 1 January 2024: Established near real-time regime for reporting invoices, relating only to domestic supplies. [simplified invoice for goods and services, export invoices, non-established counterparties and intra-community supplies were exempt]
• Grace Period: 1 Jan – 31 May 2024: Brief transition period where no penalties will be imposed for non-compliance with the submission deadlines for e-invoices.
• 1 July 2024: Mandatory B2B E-Invoicing submissions via the eFacturӑ platform; Paper invoices are not longer valid for tax compliance; Mandatory B2B e-invoice reporting for non-local established entities with local sales; Voluntary B2C e-invoicing.
• 1 August 2024: Romanian eVAT pre-filled returns will launch.
• 1 January 2025: Mandatory B2C domestic transaction e-invoicing

Penalties to be Impose for Non-compliance

The grace period prevented the imposition of penalties on non-compliance business entities, however, since the expiry of the grace period on 1 July 2024, both the supplier and the recipient will now be held liable. The fine, being 15% of the total amount of the relevant invoice.

Government Ordinance 227/2015, clause 6 to 8 of Article LXIV provides for further penalties that will be incurred in the instance of non-compliance (per invoice). Clause 7 of Art. LXIV reads that the failure of complying with the provisions set out in Clause 6 will constitute a misdemeanour and will be subject to a fine of:

a. A fine from 5000 lei to 10,000 lei for legal entities classified as large taxpayers; or

b. A fine from 2,500 lei to 5,000 lei for legal entities classified as medium taxpayers; or

c. A fine from 1,000 lei to 2,500 lei for legal entities, as well as natural persons.

 SAF-T in Romania

The Romanian Government is not just merely imposing the mandated use of e-invoices but are also implementing SAF-T reporting.

The SAF-T reporting obligation has been introduced in four stages, the final stage being imposed January 2025. The stages are set out below:  First stage: 1 January 2022 – large taxpayers. Second stage: 1 July 2022 – second round of large taxpayers. Third stage: 1 January 2023 – medium-sized taxpayers. Fourth stage: 1 January 2025 – small-sized taxpayers.

Subsequently, SAF-T will be applicable to all domestic, VAT-registered taxable persons, as well as non-established VAT-registered companies. The SAF-T files can be submitted electronically through the tax authorities’ public service ‘Servicii online – Depunere declarații’, on Form D406.

Note: It is important to note that the implementation of e-invoicing and e-reporting is in no way a replacement for SAF-T.

Take-Away

Romania is a front-runner in the implementation of the ideological global digitalisation strategy for an efficient and functioning digital economy. They have implemented an e-invoicing and e-reporting obligation on B2G-and-B2B domestic transactions and are intent on extending the e-invoicing mandate to B2C domestic transactions in 2025. Non-established VAT-registered business entities are obliged to e-report to the Romanian Tax Authorities via eFacturӑ (SPV). The Romanian Government has also imposed penalties for non-compliance with the mandates.

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