Fresh News about the Romanian e-Invoicing System

The Romanian Ministry of Finance has started in October 2021 a pilot project for electronic invoicing. While primarily focused on transactions between companies and Government (e.g. public acquisitions), companies may also opt for its application within Business-to-Business transactions. Officials expect an extensive use of the system.

Scope of the e-invoicing system

On one hand, the basis for such system was Romania´s obligation to implement the EU Directive 2014/55/EU regarding electronic invoicing in public procurement. On the other hand, the system is aimed to enhance the VAT collection level (which is very low in Romania), as well as to prevent and combat tax evasion. Both are endeavors to align to the EU strategic principles for e-governing.

Specific details

Electronic invoices shall only be sent via a national electronic platform for e-invoicing called “RO E-FACTURA”. It shall take the form of an XML file with a set of predefined data and will be used together with the electronic signature.

In order to use such invoices in transactions between companies and government (the so-called B2G transactions), the company must register a digital certificate for Virtual Private Space access (Ro: Spatiu Privat Virtual, SPV). As a general rule, once a company has decided to use e-invoicing, it is obliged to use it in relation to all public institutions. The receiving public institution is required on her hand to check the legality and conformity of the e-invoice before processing it.

Companies interested in using such system in B2B transactions must register in the Romanian e-invoice Registry. The application of the e-invoicing requires for both the issuer and the beneficiary be registered; otherwise, the standard invoicing rules apply.

A special procedure has been published for non-resident taxpayers, which can submit a special enrollment form for applying e-invoicing. 

Conclusion

This pilot system is a fresh optional procedure meant to sustain digitalization not only in B2G transactions. Time will show if this system will be as attractive and useful as described in advance also for B2B transactions for preparing and correcting e-invoices.

Please find more detailed information under: https://stalfort.ro/wp-content/uploads/2021/12/20211230_EG-Implementation_of_the_Romanian_e-invoicing_system.pdf