The Romanian government has circulated <a href="https://mfinante.gov.ro/static/10/Mfp/transparenta/proiectOUGmodifactefiscalbugetare_02122024.pdf" target="_blank" rel="noopener">draft legislation</a> on the upcoming obligation to report invoices for B2C transactions. <a href="https://legislatie.just.ro/Public/DetaliiDocument/284213" target="_blank" rel="noopener">Legislation</a> passed in June 2024 established the requirement for taxpayers engaging in business-to-consumer transactions to transmit electronic invoices as of January 2025. The draft legislation supplements and clarifies select aspects related to the expansion of the mandate. 
To begin with, the inclusion of simplified invoices differs from previously published information. Starting January 2025, the previously exempt simplified invoice, defined by the <a href="https://legislatie.just.ro/Public/DetaliiDocumentAfis/284327" target="_blank" rel="noopener">Fiscal Code</a> as invoices with a value of 100 EUR or less, will be in the scope. 
Furthermore, addressing previous GDPR concerns, the requirement for beneficiary information to be on the invoice has been removed. Invoice issuers may now use an arbitrary all zero 13-digit value in the field associated instead. 
Pagero continues to monitor developments in Romania and analyze the requirements.

Several legislations have been published in Romania to thwart tax evasion. This includes B2C e-invoicing requirements, e-VAT measures, and e-Transport requirements. Recent draft legislation addresses the future and applicability of these aspects.&nbsp;

Romania provides further insight into upcoming B2C invoicing requirements 

The <a href="https://mfinante.gov.ro/presa-comunicate-de-presa/-/asset_publisher/vMeOfqIFpa30/content/modific-c4-83ri-la-nivelul-sistemelor-na-c8-9bionale-digitale-implementate-de-mf-sanc-c8-9biunile-pentru-e-transport-c8-99i-e-tva-se-am-c3-a2n-c4-83-pentru-1-ianuarie-2025-iar-utilizarea-e-factura-c3-aen-regim-b2c-devine-obligatorie-de-la-1-iulie-2025?_com_liferay_asset_publisher_web_portlet_AssetPublisherPortlet_INSTANCE_vMeOfqIFpa30_assetEntryId=11818427&amp;_com_liferay_asset_publisher_web_portlet_AssetPublisherPortlet_INSTANCE_vMeOfqIFpa30_redirect=https%3A%2F%2Fmfinante.gov.ro%2Fpresa-comunicate-de-presa%3Fp_p_id%3Dcom_liferay_asset_publisher_web_portlet_AssetPublisherPortlet_INSTANCE_vMeOfqIFpa30%26p_p_lifecycle%3D0%26p_p_state%3Dnormal%26p_p_mode%3Dview%26_com_liferay_asset_publisher_web_portlet_AssetPublisherPortlet_INSTANCE_vMeOfqIFpa30_cur%3D0%26p_r_p_resetCur%3Dfalse%26_com_liferay_asset_publisher_web_portlet_AssetPublisherPortlet_INSTANCE_vMeOfqIFpa30_assetEntryId%3D11818427" target="_blank" rel="noopener">announcement</a> made by the Ministry of Finance mentions new changes being implemented, as well as the extension of grace periods to adopt the systems.
&nbsp;
Previously, the grace period for compliance with the RO e-Transport system, in which no penalties were to be levied, was to end on 1 July 2024. The grace period has now been extended until 1 January 2025.
&nbsp;
Authorized economic operators are explicitly mentioned in connection with the new measures and timelines associated with the RO e-Transport system. The remaining changes for the digital systems have been passed into law by this <a href="https://legislatie.just.ro/Public/DetaliiDocument/284679" target="_blank" rel="noopener">Emergency Ordinance</a>.

The Romanian Ministry of Finance has announced changes to the national digital systems overseen by the Ministry. These changes encompass the e-VAT, RO e-Transport, and RO e-invoice systems.

Romania extends the grace period for taxpayers to comply with the RO e-Transport system

The Romanian Minister of Finance <a href="https://mfinante.gov.ro/ro/despre-minister/-/asset_publisher/uwgr/content/mf-continu-c4-83-m-c4-83surile-c3-aempotriva-evaziunii-fiscale-c8-99i-introduce-obligatoriu-de-la-1-ianuarie-2025-facturarea-electronic-c4-83-pentru-rela-c8-9bia-c3-aentre-companii-c8-99i-consumatorii-finali-b2c-?_com_liferay_asset_publisher_web_portlet_AssetPublisherPortlet_INSTANCE_uwgr_assetEntryId=11741330&amp;_com_liferay_asset_publisher_web_portlet_AssetPublisherPortlet_INSTANCE_uwgr_redirect=https%3A%2F%2Fmfinante.gov.ro%2Fro%2Fdespre-minister%3Fp_p_id%3Dcom_liferay_asset_publisher_web_portlet_AssetPublisherPortlet_INSTANCE_uwgr%26p_p_lifecycle%3D0%26p_p_state%3Dnormal%26p_p_mode%3Dview%26_com_liferay_asset_publisher_web_portlet_AssetPublisherPortlet_INSTANCE_uwgr_cur%3D0%26p_r_p_resetCur%3Dfalse%26_com_liferay_asset_publisher_web_portlet_AssetPublisherPortlet_INSTANCE_uwgr_assetEntryId%3D11741330" target="_blank" rel="noopener">announced</a> the plan to extend e-invoicing requirements from 1 January 2025, with optional use becoming available from 1 July 2024 for B2C transactions. The extension will facilitate <a href="https://www.anaf.ro/anaf/internet/ANAF/acasa/!ut/p/a1/hc6xDoIwEAbgZ2Ho2jtRCHHDhUocxEXoYkpSCgZbUiq8vtU4OCjedn--y3_AoQSuxdQp4TqjRf_ceXxhKxazMAlzZAViEe32pyg7ImYbDyoP8Mek-O_-DHyRYPwGCxU5cNWb-vVulep6nSjgVjbSSkvv1setc8O4JUhwnmcqtGioNQS_-daMDsoPBsOtxGvUT4c0CB5h5prT/dl5/d5/L2dBISEvZ0FBIS9nQSEh/" target="_blank" rel="noopener">ANAF&rsquo;s</a> (Romanian Tax Authority) reception of accurate invoice data. This data will be further used in pre-filled e-vat returns, a vital tool in Romania&rsquo;s fight against tax evasion.
&nbsp;
The extended requirements encompass all taxable persons issuing invoices directly to consumers. The B2C transactions will have to be reported in the RO e-Factura system. B2C transactions related to tourism and holiday vouchers have required the reporting of electronic invoices since April 2022, so it seems that the extension of regulations will be applied to the remainder of the sector. However, more information is yet to come.
&nbsp;
Parties exempted from the e-invoicing obligation in this context include:
<ul>
<li>Taxable persons issuing invoices for transactions not subject to VAT;</li>
<li>Diplomatic missions and consular offices;</li>
<li>Branches of the Romanian armed forces;</li>
<li>The European National Bank;</li>
<li>And more.</li>
</ul>
&nbsp;
Specific associations, foundations, and farmers operating under the special regime will also be required to adhere to the new requirements, beginning 1 July 2025.
&nbsp;
Pagero closely monitors these developments. Once the Romanian government clarifies further reporting requirements and timelines, our stakeholders will be notified in due time.

In Romania&rsquo;s continued efforts to combat tax evasion, the country intends to extend e-invoicing requirements for B2C transactions as of 1 January 2025.

Romania extends e-invoicing requirements to the B2C sector

The draft <a href="https://mfinante.gov.ro/static/10/Mfp/transparenta/proiectOUGmodifL227_22032024.pdf" target="_blank" rel="noopener">emergency ordinance</a> extends the grace period from 31 March to 31 May. The sanctions for which the grace period applies are for not complying with the 5-working-days invoice reporting requirement of a taxable event/initial issuance of an invoice.
&nbsp;
The draft legislation also clarifies the context in which the penalties will be levied. Previously, it was unclear if non-compliance sanctions would be applicable per invoice. Now, it is stated that for one or more invoices in each calendar month, the following penalties will apply:
<ul>
<li>RON 1000 to 2500 (ca. EUR 200 to 500) &ndash; small taxpayers, legal persons, and &lsquo;other&rsquo; legal entities;</li>
<li>RON 2500 to 5000 (ca. EUR 500 to 1000) &ndash; medium taxpayers;</li>
<li>RON 5000 to 10000 (ca. EUR 1000 to 2000) &ndash; large taxpayers.</li>
</ul>
&nbsp;
While the draft law still needs to be approved, it is anticipated this will happen soon.
&nbsp;
&nbsp;
&nbsp;

Romanian Minister of Finance Marcel Bolos has announced his intent to extend the grace period for penalties associated with electronic invoicing obligations as thousands of taxpayers are still not using e-invoices.

Romania publishes a draft law extending penalty grace period for not complying with e-invoicing

Reporting on the transportation of high-risk fiscal goods in the RO e-Transport system has been required since July 2022. The scope of required users and scenarios for use of the system has now been expanded to include instances of international transport, regardless of whether goods are considered high risk. International road transport encompasses transport to and from both Member States and third countries.
&nbsp;
According to <a href="https://legislatie.just.ro/Public/DetaliiDocument/277404" target="_blank" rel="noopener">Emergency Ordinance 115/2023</a>, as of 1 March 2024, the following goods will now be considered high fiscal risk:
<ul>
<li>Meat and edible organs (CN codes from 0201 to 0210);</li>
<li>Fish and crustaceans, molluscs, and other aquatic invertebrates (CN codes 0302, 0304 and 0306);</li>
<li>Milk and dairy products; bird eggs; natural honey; edible animal products, not specified and not included elsewhere (CN codes from 0401 to 0407 and 0409);</li>
<li>Unprocessed tobacco; raw tobacco and tobacco waste (CN code 2401);</li>
<li>Other processed tobacco and tobacco substitutes; homogenized or reconstituted tobaccos; tobacco extracts and essences (NC code 2403);</li>
<li>Tobacco products or tobacco and/or nicotine substitutes, tobacco intended for inhalation without burning; other products containing nicotine intended for the absorption of nicotine in the human body (NC code 2404).</li>
</ul>
&nbsp;
For the transport of both high-risk fiscal goods and international transport, the requirement to obtain an ITU code remains, as well as the requirement to adhere to the telecommunication requirements associated with the system.
&nbsp;
Penalties for non-compliance with the new RO e-Transport system requirements will take effect on 1 July 2024.

Romania&rsquo;s attempt to monitor the transport of goods has now been expanded to include a longer list of high-risk fiscal goods, international operations, and telecommunication protocols.&nbsp;

Romania expands the scope of the RO e-Transport system

Discussion between Romanian Prime Minister Marcel Ciolacu and advocacy groups for SMEs has yielded a decision and progress toward developing a mobile application suited to address the recently implemented e-invoicing requirements.
&nbsp;
Since the commencement of the first wave of the e-invoicing mandate, there have been ongoing discussions between taxpayers and the Ministry of Finance regarding improvement of the RO e-Factura platform. A mobile application is the third in a series of significant platform upgrades.
&nbsp;
The previously implemented removal of duplicate invoices and the introduction of self-billing were large strides forward for the platform. The introduction of the mobile application continues to bolster the system.

The Romanian Ministry of Finance has been working on a mobile application to transmit electronic invoices. The swift decision mainly focuses on small and medium-sized enterprises (SMEs) without the volumes of larger organizations but with similar obligations.

Romania to produce a mobile application for electronic invoice generation

As of 1 January, the requirements for issuing invoice data to the RO e-Factura began. The Ministry of Finance has proactively made improvements to the national e-invoicing system to address the concerns of taxpayers within the jurisdiction. These changes include removing the possibility of issuing duplicate invoices, which will be outright rejected, and introduce the option for self-billing.&nbsp;
&nbsp;
The introduction of self-billing allows taxpayers to apply under a wide array of use cases, including the ability for beneficiaries to invoice on behalf of their suppliers.&nbsp;
&nbsp;
Press releases on these updates can be found on the <a href="https://mfinante.gov.ro/despre-minister/-/asset_publisher/uwgr/content/-c3-8embun-c4-83t-c4-83-c8-9biri-pentru-sistemul-e-factura-nu-mai-pot-fi-introduse-facturi-duplicat?_com_liferay_asset_publisher_web_portlet_AssetPublisherPortlet_INSTANCE_uwgr_assetEntryId=10948258&amp;_com_liferay_asset_publisher_web_portlet_AssetPublisherPortlet_INSTANCE_uwgr_redirect=https%3A%2F%2Fmfinante.gov.ro%2Fdespre-minister%3Fp_p_id%3Dcom_liferay_asset_publisher_web_portlet_AssetPublisherPortlet_INSTANCE_uwgr%26p_p_lifecycle%3D0%26p_p_state%3Dnormal%26p_p_mode%3Dview%26_com_liferay_asset_publisher_web_portlet_AssetPublisherPortlet_INSTANCE_uwgr_cur%3D0%26p_r_p_resetCur%3Dfalse%26_com_liferay_asset_publisher_web_portlet_AssetPublisherPortlet_INSTANCE_uwgr_assetEntryId%3D10948258" target="_blank" rel="noopener">Ministry of Finance Website</a>.&nbsp;

The Romanian Ministry of Finance has been actively assessing possible improvements to the national e-invoicing system. Harmonization with invoicing service providers and billing platforms has been a large focus, and the ministry has invited industry leaders to discuss necessary improvements to the national system.

Ministry of Finance announces updates to the RO e-Factura platform 

On 14 December 2023, the Romanian government passed an <a href="https://legislatie.just.ro/Public/DetaliiDocument/277404" target="_blank" rel="noopener">emergency ordinance</a> that included updated information on different aspects and requirements regarding the use of the RO e-Factura regarding the different obligations for taxpayers. While the timelines for reporting and transmission of electronic invoices remain the same, as well as those that exist for the grace period for the application of penalties, the following changes will now be introduced from 1 July 2024:
<ul>
<li>Sanctions for non-compliance with the requirement to report invoices within 5 working days of a taxable event/initial issuance of an invoice, and no later than 5 days after the deadline to issue invoices, between 1000 to 10000 lei for legal entities depending on the taxpayer&rsquo;s size;
<ul>
<li>1000 to 2500 lei &ndash; small taxpayers, legal persons, and &lsquo;other&rsquo; legal entities</li>
<li>2500 to 5000 lei &ndash; medium taxpayers</li>
<li>5000 to 10000 lei &ndash; large taxpayers</li>
</ul>
</li>
<li>Sanctions for non-compliance with the requirements to issue and receive invoices via the RO e-Factura platform equal to 15% of the total value of the invoice.</li>
</ul>
&nbsp;
These remaining aspects are applicable as per the commencement of the e-invoicing obligations:
<ul>
<li>Transactions with simplified invoices are exempt from transmission obligations;</li>
<li>If the RO e-Factura system is not functional for more than 24 hours, transmission obligations are suspended until the platform is operational again; and</li>
<li>Taxpayers may issue invoices based on <a href="https://legislatie.just.ro/Public/DetaliiDocumentAfis/269221" target="_blank" rel="noopener">Fiscal Code</a> provisions while the RO e-Factura platform is not functional, provided that the electronic invoices are subsequently submitted to the platform.</li>
</ul>
&nbsp;
The Romanian Ministry of Finance has also provided a <a href="https://mfinante.gov.ro/static/10/Mfp/ghidE-FACTURA.pdf" target="_blank" rel="noopener">user guide</a> to further assist taxpayers in adapting to the requirements and using the platform to fulfill their obligations.

Anticipation continues to build in Romania as further legislation has been passed amending the previous law regarding fiscal and budgetary measures. The new measures implemented regarding electronic invoice requirements for B2B transactions attempt to supplement and clarify requirements during the two-phased approach of the obligations.

Romania passes further legislation addressing fiscal measures and electronic invoicing 

On 26 October 2023, President Klaus Iohannis signed into force fiscal-budgetary measures for ensuring Romania&rsquo;s long-term financial stability. The legislation largely includes VAT and other tax-related matters, but importantly, makes the future issuance and reception of electronic invoices obligatory.
&nbsp;
The timelines stipulated in the draft law remain the same with the new published legislation as follows:
<ul>
<li>Phase 1: Effective 1 January 2024 - B2B e-reporting for both established and non-established companies</li>
<li>Phase 2: Effective 1 July 2024 - B2B e-invoicing (centralized CTC approach) for established companies while non-established ones remain subject to e-reporting.</li>
<li>Grace period: No penalties will be levied from 1 January to 31 March 2024.</li>
</ul>
&nbsp;
The deadline for submitting invoices during Phase 1 is 5 days from the date of issuance or taxable event with administration of an invoice.
&nbsp;
Penalties for non-compliance levied against taxpayers can range from 1000 LEI to 10000 LEI (ca. EUR 200 to EUR 2000 ).

After much anticipation, the Romanian legislation regarding fiscal-budgetary measures to ensure long-term financial stability has been signed. The legislation had been under intense review and scrutiny since 19 September 2023 but has now been deemed constitutional and approved.

Romanian President signs decree on fiscal-budgetary measures including electronic invoicing

The <a href="https://mfinante.gov.ro/static/10/Mfp/transparenta/proiectlegemasurifiscalbugetare_19092023.pdf" target="_blank" rel="noopener">draft law</a>, which Romanian legislators announced on the Ministry of Finance website, introduces how they plan to implement the countrywide e-invoicing CTC mandate after receiving derogation from the European Commission. As previously notified by Pagero, this derogation allowed Romania to start a countrywide obligation from 1 January 2024 but required domestic legislation.
&nbsp;
The draft law proposes to establish the following important milestones:
&nbsp;
<ul>
<li>1 January 2024 &ndash; The use of RO e-invoice system (Clearance-type CTC approach) becomes mandatory for all taxpayers established in Romania that already are subject to the existing e-Transport obligations</li>
<li>1 January 2024 &ndash; The use of RO e-invoice system (Clearance-type CTC approach) becomes mandatory for all established and non-established in Romania, having RO VAT registration (referred to as &ldquo;e-reporting&rdquo; obligation)</li>
<li>1 April 2024 &ndash; Sanctions and penalties become applicable for non-compliance.</li>
<li>1 July 2024 &ndash; The mandatory exchange (send and receive) of e-invoices through the RO e-invoice system (Centralized Exchange-type CTC approach) for all B2B transactions and all taxpayers established in Romania.</li>
</ul>
&nbsp;
These timelines are unprecedently short, and businesses have very little time to comply; however, further discussions and amendments are still possible. As Romania has previously stuck to short timelines, we encourage businesses to prioritize this project and not leave it at the bottom of the drawer.

The Romanian government published a draft law on 19 September 2023 that includes long-awaited information about the anticipated countrywide e-invoicing CTC mandate.

Romanian draft law announces potential timeline for countrywide mandate 

On 27 July 2023, the European Commission approved Romania&rsquo;s derogation request to implement a B2B e-invoicing mandate. While the mandate is set to commence on 1 January 2024, <a href="https://www.anaf.ro/anaf/internet/ANAF/acasa/!ut/p/a1/hc6xDoIwEAbgZ2Ho2jtRCHHDhUocxEXoYkpSCgZbUiq8vtU4OCjedn--y3_AoQSuxdQp4TqjRf_ceXxhKxazMAlzZAViEe32pyg7ImYbDyoP8Mek-O_-DHyRYPwGCxU5cNWb-vVulep6nSjgVjbSSkvv1setc8O4JUhwnmcqtGioNQS_-daMDsoPBsOtxGvUT4c0CB5h5prT/dl5/d5/L2dBISEvZ0FBIS9nQSEh/" target="_blank" rel="noopener">ANAF</a>, the Romanian Tax Authority, will soon divulge further information about the date the mandate will begin and other pertinent information surrounding the obligation.
&nbsp;
Previously, Romania had made issuing electronic invoices in the B2G sector obligatory and for those transactions in the B2B sector that involved &ldquo;high-risk fiscal goods&rdquo;. The upcoming mandate will now be all-encompassing, requiring all invoices to be issued and received through the RO e-factura platform. Taxpayers must also issue invoices in the RO_CIUS format conformant to EN 16931 standards.

Romania has been authorized to implement obligatory B2B electronic invoicing. The mandate is set to commence on 1 January 2024.

European Commission grants Romania permission for a countrywide e-invoicing mandate

On 14 January 2022, Romania sent a request to the European Commission to obtain a derogation from Articles 178, 218, and 232 of the VAT Directive to implement mandatory electronic invoicing for all transactions carried out between taxpayers established in the territory of Romania.
&nbsp;
The incentives to adopt e-invoicing are to combat tax fraud and evasion, make the collection of VAT more efficient, and reduce administrative costs for taxpayers and the tax administration. This will be achieved by requesting taxpayers to report invoice information to the tax administration in real time.
&nbsp;
Furthermore, on 23 June 2023, the European Commission published the proposal to authorize Romania to introduce special measures derogating from Articles 218 and 232 of Directive 2006/112/EC on the common value-added tax system.
&nbsp;
Initially, Romania will request that invoices are cleared and made available to the recipient through the RO e-factura platform. Romania claims that the national electronic invoice system RO e-factura is compatible with the European standard on electronic invoicing.
&nbsp;
According to the above claim, Romania should be aligned with EC regulations without any major changes. This will be highly likely applicable in the early stages at minimum.
&nbsp;
Romania has already regulated the e-invoice system in the public sector since 1 July 2022. With the EC approval, the mandate will extend to the private sector. However, the obligation applies only to taxpayers established in Romania, meaning that those who are not established in Romania would not be obliged to adhere to the RO e-system.
&nbsp;
If approved, e-invoicing could be mandatory in Romania from 1 January 2024. Please see the <a href="https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=COM:2023:329:FIN" target="_blank" rel="noopener">European Commission&rsquo;s official announcement</a> for more details.
&nbsp;

Joining the likes of member states such as Italy, Poland, and France, Romania is one step closer to making e-invoicing mandatory for all transactions between established taxpayers.

European Commission publishes proposal to authorize Romania to implement a countrywide e-invoicing mandate

As reported in previous updates, since July 2022, Romania has mandated the use of the national e-Factura infrastructure to issue electronic invoices to public entities (B2G) and also for companies that issue invoices for the supply of products of high fiscal risk to other businesses (B2B).
&nbsp;
There have been some rumours in the market that B2B e-invoicing will become mandatory for all businesses in the country by 2024. As of now, there has been no official legislation in place in this regard. Therefore, it seems the 2024 timeline is unlikely to happen.
&nbsp;
However, it is worth mentioning that last year Romania applied for a derogation from the EU commission to implement a countrywide mandate but hasn&rsquo;t received it yet. This is probably because the current CTC model in Romania is not in line with the <a href="https://www.pagero.com/news/vida-eu-proposal-vat-regime/">VIDA initiative</a>.
&nbsp;
Pagero is closely monitoring the developments in Romania and will update the stakeholders with any upcoming official announcements.

The recently circulated timelines regarding mandatory B2B e-invoicing in Romania from 2024 are marked by doubts and unlikely to occur. In this update, we explain why.

Latest updates on the Romanian CTC obligation

The Romanian government has issued a <a href="https://mfinante.gov.ro/documents/35673/5553347/proiectOUGmodifcompletactenormative_21092022.pdf" target="_blank" rel="noopener">draft emergency ordinance</a>, postponing fines for non-compliance with the RO e-transport mandates. The penalties will now be imposed as of 1 January 2023.
&nbsp;
Furthermore, the validity timeframe of e-transport documents for intra-community transactions has been increased from 5 days to 10. All other transactions, however, will still hold validity only for 5 days.
&nbsp;
To learn more about RO e-transport in Romania, click <a href="https://www.pagero.com/compliance/world-map/romania/" target="_blank" rel="noopener">here</a>.

Previously delayed to October 2022, Romania has extended the fines deadline again.

Romania further postpones fines for e-transport mandates

As previously mentioned by Pagero, Romania has implemented the RO e-Transport system since 1 July 2022. Certain taxpayers were obliged to adhere to the nationwide monitoring system for the transport of goods with high fiscal risk by validating the dispatch advice with this system prior to shipment of the goods.
&nbsp;
As the implementation deadline was approaching, many taxpayers faced penalties for not yet having their compliance solutions up and running. Romanian authorities published an <a href="https://mfinante.gov.ro/static/10/Mfp/eTransport/OUG106_MOF_657_30062022.pdf">Emergency Ordinance</a> on 30 June 2022 to deal with this issue. Effectively pushing the introduction of the penalties to 1 October 2022.
&nbsp;
Please note that this postponement of the penalties does not mean a general delay of the reporting obligation, and usage of the e-Transport platform is still mandatory.

With an extremely short implementation timeline of the new mandate to real-time clear the dispatch advice via the RO e-Transport system and thus taxpayers facing non-compliance penalties, the Government of Romania has granted a penalty grace period until 1 October 2022.

Romania grants a penalty grace period for complying with the RO e-Transport system

On 17 May 2022, <a href="https://legislatie.just.ro/Public/DetaliiDocument/255495" target="_blank" rel="noopener">Law no. 139/2022</a> was passed, approving <a href="https://legislatie.just.ro/Public/DetaliiDocumentAfis/247243" target="_blank" rel="noopener">Government Ordinance 120/2021</a> which focuses on the administration, functioning, e-invoicing, and implementation of the RO e-factura system.
&nbsp;
<a href="https://legislatie.just.ro/Public/DetaliiDocument/249349" target="_blank" rel="noopener">Government Ordinance 130/2021</a>, which addresses electronic invoices in the private sector, will not be impacted by the new law. The timelines for both government ordinances are similar.
&nbsp;
Timelines for the new requirements 
&nbsp;
Beginning 1 July 2022, taxpayers will have to adhere to the following:
<ul>
<li>Taxpayers established in Romania will be required to issue e-invoices for the B2G transactions via the RO e-Factura national platform.</li>
<li>Taxpayers trading in high-risk fiscal products in the B2B relationship will also have to exchange electronic invoices via the national platform.</li>
<li>Taxpayers trading in high-risk fiscal products will be required to use the RO e-transport system to monitor the transport of these products. We describe this system below.</li>
</ul>
&nbsp;
What is RO E-Transport System?
&nbsp;
It is a national system for monitoring the transport of goods with high fiscal risk. The RO e-Transport system has been optional to use since 1 April 2022 but will become mandatory as of 1 July 2022.
&nbsp;
The system requires suppliers to register the transportation of the goods in it a max of 3 calendar days before shipping. The following information needs to be provided:
<ul>
<li>Name of the consignor, beneficiary, or consignee;</li>
<li>Quantities and value of the transported goods;</li>
<li>Places of loading and unloading;</li>
<li>Details on the means of transport used and carrier;</li>
<li>Date declared for the start of the transportation.</li>
</ul>
&nbsp;
After the above information is processed in the RO e-transport system, a unique code (ITU Code) will be generated, and a physical copy of the code will have to be included with the goods before shipping.

The Romanian Government has passed a law approving the implementation and operation of the RO e-factura system and electronic invoicing. Specific taxpayers will now be obliged to issue e-invoices.

Romania to implement countrywide e-invoicing requirements for public and private sectors

The Romanian Chamber of Deputies announced a draft law on 20 April 2022, which is set to amend <a href="https://legislatie.just.ro/Public/DetaliiDocumentAfis/247243" target="_blank" rel="noopener">Government Ordinance 120/2021</a>. This ordinance focuses on the administration, functioning, e-invoicing and implementation of the RO e-factura system.
&nbsp;
The system has been available for voluntary use since November 2021. The proposed changes in the draft law will mandate B2G e-invoicing, beginning 1 July 2022.
&nbsp;
As previously mentioned, the <a href="https://legislatie.just.ro/Public/DetaliiDocument/249349" target="_blank" rel="noopener">Government Ordinance 130/2021</a> required the issuance of electronic invoices via the RO e-factura system for B2B suppliers of high-risk fiscal products as of 1 July 2022. This draft law will now await a derogation decision from the European Commission. Once obtained, the tax authority (ANAF) will establish the categories of taxable persons and when they will need to use the <a href="https://mfinante.gov.ro/ro/web/efactura/legislatie" target="_blank" rel="noopener">RO-eFactura system</a> for invoices issued in the private sector.
&nbsp;
Based on the proposed amendments, it is expected that the implementation of e-invoicing for all types of transactions will take a short time. Namely, the Romanian Ministry of Finance states 2023 as a timeline in their <a href="https://mfinante.gov.ro/presa-comunicate-de-presa/-/asset_publisher/vMeOfqIFpa30/content/ro-e-factura-restarteaz-c4-83-sistemul-fiscal?_com_liferay_asset_publisher_web_portlet_AssetPublisherPortlet_INSTANCE_vMeOfqIFpa30_assetEntryId=4885103&amp;_com_liferay_asset_publisher_web_portlet_AssetPublisherPortlet_INSTANCE_vMeOfqIFpa30_redirect=https%3A%2F%2Fmfinante.gov.ro%2Fpresa-comunicate-de-presa%3Fp_p_id%3Dcom_liferay_asset_publisher_web_portlet_AssetPublisherPortlet_INSTANCE_vMeOfqIFpa30%26p_p_lifecycle%3D0%26p_p_state%3Dnormal%26p_p_mode%3Dview%26_com_liferay_asset_publisher_web_portlet_AssetPublisherPortlet_INSTANCE_vMeOfqIFpa30_cur%3D0%26p_r_p_resetCur%3Dfalse%26_com_liferay_asset_publisher_web_portlet_AssetPublisherPortlet_INSTANCE_vMeOfqIFpa30_assetEntryId%3D4885103" target="_blank" rel="noopener">announcement</a>.

After the requirement for certain suppliers to issue electronic invoices for B2B transactions, the Romanian government recently issued a draft law on the mandatory use of the RO-factura e-invoicing system in the public sector.

Romania will start implementing countrywide e-invoicing obligation shortly

In Romania the use of the Ro e-factura system to issue e-invoices is nowadays voluntary. The main requirement to exchange e-invoices via RO e-factura is that both parties (supplier and buyer) are registered in the &ldquo;RO e-factura registry&rdquo;.
&nbsp;
The Romanian Government published on 18 December 2021 the <a href="http://legislatie.just.ro/Public/DetaliiDocument/249349">Emergency Ordinance no. 130/2021</a> with more information regarding the issuance of e-invoices. In particular, In article XXXVII of the ordinance states that B2B suppliers of high fiscal risk products will have to start issuing electronic invoices through the national platform RO e-factura.
&nbsp;
&nbsp;
<ul>
<li>From 1 April until 30 June it will be voluntary for these taxpayers to issue e-invoices, even though the buyer is not registered in the RO e-Invoice registry</li>
<li>From 1 July 2022, these taxpayers will be required to issue e-invoices through the RO system on a mandatory basis.</li>
</ul>
&nbsp;
It is still to be determined what a high fiscal risk product is, as the name says, they are products with a high risk of tax fraud and evasion. The National Agency for Fiscal Administration (ANAF) will be publishing soon the list of products in this category. However, it is worth mentioning that the list is periodically re-evaluated.

B2B taxpayers supplying high fiscal risk products will be obliged to issue e-invoices through the national e-invoicing system (RO e-factura), starting from 1 July 2022.

Some B2B taxpayers to issue e-invoices from 1 July 2022

In October 2021, the Romanian Government released <a href="https://legislatie.just.ro/Public/DetaliiDocumentAfis/247243" target="_blank" rel="noopener">Ordinance no. 120/2021</a>, regulating the RO e-invoice national invoicing system (RO e-factura).
<h4>New Order to regulate the technical aspects</h4>
<a href="http://legislatie.just.ro/Public/DetaliiDocument/248303" target="_blank" rel="noopener">Order no. 1366/2021</a> from 5 November 2021 approves the technical specifications and the basic elements of the electronic invoice format RO_CIUS on a countrywide level. These are the main aspects that are being regulated:
&nbsp;
&nbsp;
<ul>
<li>The technical specifications of the basic elements of e-invoice - RO_CIUS;</li>
<li>Set of rules for the semantic data of the electronic invoice;</li>
<li>Additional rules on the format RO_CIUS.</li>
</ul>
<h4>Current status of e-invoicing</h4>
Today B2G electronic invoicing is optional for every taxpayer, and B2B is optional with the requirement that both parties (sender and recipient) are registered in the RO e-invoice system. Stay tuned with Pagero for the latest developments on electronic invoicing in Romania.

First steps towards a countrywide e-invoicing mandate are being taken in the country.

Romania approves technical specifications for the countrywide e-invoice format

With the introduction of the pilot programme as part of the e-Factura project, e-invoicing in Romania is starting to take form.
<h4>How did the e-Factura project start?</h4>
The Romanian government launched the project in March 2020 after closely monitoring the Italian e-invoicing model and analysing the economic impact and efficiencies that electronic invoicing has had in Italy.
&nbsp;
On 8 September 2020, Law no. 199/2020 on e-invoicing within public procurement was released. Through this law, <a href="https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32014L0055" target="_blank" rel="noopener">Directive 2014/55/EU</a> has been transposed in Romania.
<h4>Launch of the pilot programme</h4>
Furthermore, on 13 September 2021, the Romanian Ministry of Public Finance released the first draft on implementing e-invoicing via the national system called RO e-Factura. This system will be implemented during the pilot phase and used for B2G e-invoicing.
&nbsp;
The pilot programme for testing B2G e-invoicing with RO e-Factura was launched on 15 September 2021. As of 1 October 2021, the national e-invoicing system will become operational.
&nbsp;
This phase is planned to be the first step towards a country-wide e-invoicing mandate in Romania which will later be extended to B2B transactions. Further developments on this matter are expected.

The country is paving the way to mandate e-invoicing on a country-wide level.

Romania starts testing B2G e-invoicing within a pilot programme

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Regulatory updates - Romania

E-Invoicing/CTC Model:
&ndash; B2G: Centralized
&ndash; B2B: Clearance/Centralized
Mandatory Infrastructure:
RO e-factura
Mandatory Format:
RO_CIUS
Mandatory for Issuing:
- B2G: All contracting authorities
- B2B: E-invoicing for All Suppliers
- B2C: E-reporting for all suppliers from 1 January 2025
Mandatory for Receiving:
&ndash; B2G: All contracting authorities
&ndash; B2B: All buyers
eSignature:
Not Required
Archiving Period:
&ndash; 10 years
Archiving Abroad:
Allowed under conditions

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Regulatory updates - Romania

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