August Insight About E-invoicing in Romania

The Council of the European Union has taken a significant step in Romania by extending mandatory e-invoicing for B2B transactions. This move aligns with the drive towards digitalization and efficient business practices, following careful evaluation and collaboration between the EU Commission and Romanian authorities.

Romania – The Council of the European Union has adopted the Implementing Decision based on the proposal from the EU Commission to extend the mandatory e-invoicing in Romania for B2B transactions. 

Based on the present situation, deriving from the EU VAT Directive where the interested country needs to ask for a derogation from the “blocking” provisions – mainly Article 218 and 232, which don’t allow for a direct possibility of the interested country to implement mandatory e-invoicing between established businesses in their country, for Romania, as for most countries, it took some time to be in position to obtain the positive opinion from Commission, and later on from Council to extend the mandatory e-invoicing system to B2B transactions. 

The Council Implementing Decision extends the applicability of e-invoicing within Romania for established businesses in B2B transactions in alignment with the following timeline: 

The Decision shall apply from January 1, 2024, until the earlier of the following dates: 

1. December 31, 2026, or 
2. The date from which the Member States should apply any national provisions based on the Council Directive, which amends the VAT Directive – following the initiative for the digitalization of VAT, primarily based on the changes of the respectable Articles 218 and 232 of VAT Directive.

The recent decision to extend mandatory e-invoicing in Romania underscores the nation’s commitment to digital progress in business interactions. By navigating through EU VAT Directives and obtaining approvals, Romania paves the way for streamlined operations and potentially inspires other countries to follow suit in embracing digital transformation within their economies.

Read more in our article “Romania Moves Forward with Mandatory B2B E-Invoicing”