e-Invoicing in Romania

Romania has implemented RO e-invoice system to revolutionize the way business-to-business (B2B) and business-to-government (B2G) transactions are managed and reported to ANAF (Romania's National Agency for Fiscal Administration).

In this blog, we will briefly overview the e-invoicing system in Romania.

What is e-Invoicing?

E-invoicing, short for electronic invoicing, is a digital solution that transforms traditional paper-based invoicing processes into streamlined, efficient, and secure electronic transactions. It involves creating, transmitting, and receipt of invoices in digital format, eliminating the need for paper documentation and enhancing the speed and accuracy of financial transactions.

Benefits of E-Invoicing:

1. Cost Efficiency: Elimination of paper-related costs, printing, and postage.
2. Time Savings: Streamlined processing, approval, and payment cycles lead to increased operational efficiency.
3. Accuracy and Error Reduction: Automation reduces the risk of manual errors, ensuring precise invoicing.
4. Enhanced Cash Flow Management: Faster processing contributes to improved cash flow management.
5. Environmental Sustainability: Reduced paper consumption aligns with global sustainability goals.

E-Invoicing in Romania: Overview and Timeline:

The RO e-invoice system has been in operation since 2020, primarily for B2G transactions. Responding to Romania's request for derogation from specific VAT Directive articles, the European Commission presented a legislative proposal, setting the stage for mandatory implementation.

Just a month later, the Council confirmed the direction, making RO e-invoice mandatory for B2B transactions. Given below is the implementation timeline for e-invoicing implementation in Romania.

Phase 1: January 1, 2024.
Companies will have to e-report their invoices to the Government’s RO e-faktura platform within 5 days of issuance.

Phase 2: April 1, 2024.
It will be mandatory for Established companies to exchange e-invoices through the RO e-faktura platform.
Non-established companies will still be obliged to do the e-reporting.
The country already has a B2G mandate in place, together with the RO e-transport mandate.

e-Invoicing requirements

Entities established in Romania engaged in B2B relationships must use electronic invoices through the XML UBL 2.1 format containing the MF seal. The e-invoices are ready and available for 60 days in the RO portal, after which, archiving needs to be done on the supplier and buyer side for 10 years.

Conclusion:

In conclusion, Romania's commitment to the RO e-Invoice system signifies a progressive leap toward a transparent, efficient, and technologically advanced fiscal environment. As businesses adapt to these changes, the nation positions itself at the forefront of digital innovation, fostering economic growth and sustainability.

The benefits of e-Invoicing extend beyond financial efficiency, showcasing Romania as a forward-thinking player in the global economic landscape. Here's to a future where the RO e-Invoice system propels Romanian businesses into a new era of success and efficiency!