Invoicing in Romania
In Romania, individuals or businesses liable for VAT are usually required to issue VAT invoices for supplies to other VAT-registered entities, including exports and intra-community supplies. This requirement typically does not extend to VAT-exempt supplies or transactions outside the VAT scope. A VAT invoice is crucial for supporting claims for input tax deductions or reimbursements through EU refund schemes.
Learn more about invoice requirements in Romania in our comprehensive guide.
Invoicing Information
The essential details that must be included in an invoice are:
Full VAT invoice
- Name, address, VAT ID of the supplier and recipient; if supplier and/or recipient is not established in Romania, it must include the name, address, and VAT ID for the fiscal representative.
- Issue date.
- Date when the goods or services were supplied or rendered, or the date when an advance payment was made.
- Unique sequential number identifying the invoice.
- Goods supplied type and quantity.
- Amount of goods supplied, or services rendered.
- VAT rate applied.
- VAT amount payable as well as the advance payments received.
- VAT amount payable breakdown either by VAT rate or exemption.
- Total amount payable.
- If VAT exemption is applied, a reference of the related regulation stating that the supply of goods/services is VAT exempt.
- If the person liable to pay VAT is the recipient, a statement referring to “reverse charge” must be indicated.
- If the transactions made are governed by specific regimes, the invoice should contain a reference to these regimes, such as but not limited to:
- Travel agents (regimul marjei—agentii de turism)
- Secondhand goods (regimul marjei—bunuri secondhand)
- Works of art (regimul marjei—opera de arta)
- Collector’s items and antiques (regimulmarjei—obiecte de colectie si antichitati)
In Romania, a VAT invoice should be issued by the 15th day of the month following the taxable event.
Selling in Romania?
E-Invoicing in Romania: A Comprehensive Guide
Starting July 1, 2024, Romania has implemented a mandatory electronic invoicing system known as the RO e-Factura system.
This system applies to business-to-business (B2B) transactions between taxable entities established in Romania, in accordance with Article 319 of the Romanian VAT Code.
For business-to-consumer (B2C) transactions, e-invoicing will become mandatory on January 1, 2025, although businesses can opt to use the system voluntarily before this date.
Key Features of the RO e-Factura System
Mandatory Electronic Invoicing
- B2B Transactions: As of July 1, 2024, all B2B transactions between Romanian taxable persons must use the RO e-Factura system.
- B2C Transactions: While currently optional, B2C e-invoicing will become mandatory on January 1, 2025, with an exception for certain small taxpayers, such as non-profit entities, who will have a six-month grace period.
Experience a seamless, secure, and compliant e-invoicing process with our comprehensive e-invoicing solution. Learn more by clicking here.
Invoice Submission and Validation
- Format: Invoices must be submitted in XML format to the RO e-Factura system for validation.
- Original Invoice: The validated electronic invoice, bearing the electronic seal of the Ministry of Finance, is considered the original invoice.
- Validation Process: Upon submission, the system checks the invoice for compliance. If no issues are found, the invoice is electronically sealed and dispatched to the recipient. If problems arise, an error message will be generated, detailing the issues.
Registration and Submission
Suppliers must register with the RO e-Factura system to issue invoices. Registration can be done in the supplier’s name or through a representative. Invoices can be transmitted via an Application Programming Interface (API) or through applications provided by the Ministry of Finance.
Business-to-Government (B2G) Invoicing
Electronic invoicing is also required for business-to-government (B2G) transactions, ensuring a streamlined process across all sectors.
Legal Framework
The legal basis for this requirement is the Romanian Ministry of Finance Urgent Ordinance 69/2024, dated June 21, 2024. This ordinance provides an option for B2C invoices to be submitted through the RO e-Factura system from July 1, 2024, until it becomes mandatory on January 1, 2025.
Important Considerations
- Irreversibility: Once an electronic invoice is validated by the RO e-Factura platform, it cannot be modified or canceled. Therefore, businesses must exercise caution before issuing invoices to ensure accuracy and compliance.
Planning Point
Companies should prepare for the transition by ensuring that their invoicing systems and processes align with the requirements of the RO e-Factura system. The early adoption of electronic invoicing will help businesses streamline operations and avoid potential penalties once the system becomes mandatory for all transactions.
Simplified invoices are permitted for sales of EUR 100 or less. This type of invoice will only require the following to be included in the invoice:
- Issue date.
- Name, address, and of supplier VAT ID of the supplier.
- Goods supplied type and quantity.
- Breakdown of VAT amount payable by VAT rate or exemption including the total amount payable.
Last Updated: 07/08/2024
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax
