Romania: New regulation expands e-invoicing mandate to B2C transactions
Current regime applies to B2G transactions and high-risk B2B sales and goods transportation
Current regime applies to B2G transactions and high-risk B2B sales
The Romanian Ministry of Finance on June 21, 2024, issued Urgent Ordinance 69/2024 to broaden the country's electronic invoicing (e-invoicing) mandate to include business-to-consumer (B2C) transactions.
Currently, the Romanian e-invoicing regime, implemented through the RO-eFactura system, applies to business-to-government (B2G) transactions and high-risk business-to-business (B2B) sales and goods transportation. The transition to include all B2B transactions under the e-invoicing mandate began January 1, 2024, requiring taxpayers to submit XMLs containing the transactional data to the tax authority within five calendar days, though a grace period abating penalties was established and the standard invoicing practices were permitted to continue. However, as of July 1, 2024, all B2B transactions will fall under the e-invoicing mandate and the standard invoicing practices must be updated to comply with e-invoicing.
The Romanian government has set a deadline of August 1, 2024, to implement the National Information System RO e-VAT. This system is designed to pre-fill value added tax (VAT) return information on taxable transactions and make them accessible to taxpayers through the Virtual Private Space. The tax authorities view the expansion of the mandate to B2C transactions as a crucial step in enhancing the usefulness of the National Information System RO e-VAT, particularly for controlling compliance and reducing tax evasion levels.
According to the new urgent resolution, taxpayers will have the option to submit their B2C invoices through the RO-eFactura system starting July 1, 2024. While the use of the RO-eFactura system will be optional initially, it will become mandatory for all taxpayers from January 1, 2025. Exceptions may be granted for certain non-profit entities, farmers, and other small taxpayers, who would have until July 1, 2025, to comply.
Furthermore, Urgent Ordinance 69/2024 stipulates that invoices must be transmitted to the national electronic invoicing system, RO e-Invoice, within five calendar days of the invoice issuance. This deadline cannot exceed five calendar days from the prescribed invoice issuance deadline.
Lastly, the legislation extends the e-invoicing mandate to self-issued invoices when consuming one's own goods, and clarifies that transfers of goods outside the country's VAT scope, when there is no obligation to issue an invoice, are exempt from the e-invoicing obligation.
For further information, contact a KPMG tax professional:
Kathya Capote Peimbert | kcapotepeimbert@kpmg.com
Lauren Tallman | lmcevoy@kpmg.com
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