The Romanian Government adopted Emergency Ordinance no. 115/2023, which introduced a few novelties concerning e-Invoicing for B2B transactions where the place of supply is within the country.
Novelties and Clarifications
E-Invoice Issuance
From December 15, 2023, until June 30, 2024, in situations where both supplier and recipient are enrolled in the RO e-invoice system, the e-invoice should be reported within the deadline of 5 calendar days from the date of invoice issuance or within other deadlines if defined differently according to the Fiscal Code.
The grace period until June 30, 2024, should be provided for not following the deadline of 5 calendar days for non-issuance of the e-invoice for B2B transactions.
Transactions out of scope
There are transactions upon which there is no obligation to be followed by the issuance of the electronic invoice or after which there is no obligation of the seller to report the transaction in question electronically.
The following types of transactions are out-of-scope of the e-invoicing and e-reporting mandate:
- Transactions covered by the issuance of simplified invoice;
- Invoices issued to persons not established and/or without VAT registration in Romania;
- Provision of services for which there is no obligation to follow Romanian invoicing rules;
- Intra-community supply of goods and services;
- Exports.
Penalties
Starting from July 1, 2024, for non-compliance with the obligation to issue exclusively structured e-invoices for B2B transactions(excluding exempted ones), the penalty of 15% of the invoice value shall be applicable for both parties. So, the issuer and recipient should be labeled as non-complying with the e-invoicing requirement.
Along with this penalty, the seller can experience additional penalties if, after non-compliance with the obligation to issue an e-invoice, it also neglects the responsibility to move forward with the e-reporting of the concerning transaction. The taxpayer who forgets to e-report the invoice, which should have been issued in the first place through the RO e-invoice centralized system, can expect additional penalties.
Depending on the fact to what group of economic operators the taxpayer belongs, as regards the non-compliance with e-reporting obligation, the following penalties can be imposed:
- For large taxpayers between EUR 1,000 to EUR 2,000;
- For medium-scale taxpayers between EUR 500 to EUR 1,000;
- For other legal entities as well as natural persons, between EUR 200 to EUR 500.
The scope of the B2B e-invoicing and e-reporting goes beyond economic operators that are established for tax purposes in Romania. The foreign taxpayers registered for VAT in Romania, have obligation to digitally register invoice on the RO e-invoice platform. The non-compliance with new requirements could cause significant penalties as well as other impediments to both parties.
Aleksandar Delic
1stopVAT Senior Indirect Tax Researcher (Global Content)