“Regarding the digital tax reporting projects, the recently published Ordinance appears to address repeated requests from the business environment: in the context of implementing the RO e-Invoicing system for B2C transactions, it is explicitly mentioned that the personal ID number (CNP) is not mandatory on invoices issued to private individuals, the obligation to comply with the RO e-VAT system requirements is postponed until 1 July 2025, and companies with Authorised Economic Operator (AEO) status will not be sanctioned for failure to comply with RO e-Transport reporting requirments until the end of March 2025,” mentioned Alexandru Stanciu, Senior Manager, Tax, Forvis Mazars in Romania.
At the same time, NAFA recently published a new RO e-Invoicing Guideline, a highly-awaited document by taxpayers, which seems to clarify many of the difficulties in using the system.
Thus, in the context where, starting with 1 January 2025, the RO e-Invoicing system will also apply to invoices issued in B2C (business to consumer) relationship, when the recipient is not identified by any identification code, invoices will be issued using a code of 13 zeros.
Another important measure introduced in the field of e-Invoicing is the obligation to report simplified invoices in the system, which were previously exempt. According to the explanatory note of the Emergency Ordinance, it is understood that there has been an increase in the number of simplified invoices. To prevent the future abusive use of certain legislative provisions, it was decided to eliminate these exemptions. At the same time, the exemption from transmitting fiscal receipts into the system remains in place, considering that the data from these receipts are already communicated by electronic fiscal cash registers (AMEF) to NAFA's systems.
The publication of the new RO e-Invoicing Guideline provides a clearer perspective on how to draft the e-Invoices, especially regarding the codes that should be used for different types of invoices.
The authorities have provided clarifications and recommendations for the most common situations encountered in the process of implementing e-Invoicing: issuing correction invoices, invoicing on behalf and for the account of the supplier, self-billing, and the incorrect duplication of invoices. The examples mentioned in the new Guideline seem to clarify many of the questions raised by taxpayers so far, and the clarifications provided by the authorities have confirmed that, apart from the technical criteria included in the European electronic invoicing standard, the codes assigned to the invoices must be established by taking into account the actual reasoning for which the respective invoice is issued. At the same time, as the mechanism for implementing the RO e-VAT system improves, it is not ruled out that the authorities may issue new recommendations or even obligations for coding in the RO e-Invoicing system, given that it is one of the essential data sources used by NAFA.
We anticipate that all these changes will also contribute to reducing discrepancies between the pre-filled e-VAT return, a tool through which authorities believe they will identify fiscal risks more precisely, and the returns submitted by taxpayers.
The transitional period until 1 January 2025, initially set by the authorities for implementing this system, has proven to be insufficient both for taxpayers and the Ministry of Finance. As a result, a new extension has been agreed upon, pushing the deadline to 1 July 2025.
In conclusion, the requirements for digital tax reporting must remain a priority on the agenda of companies doing business in Romania, amid some uncertainty regarding when they will start seeing the beneficial effects of this digital revolution at the level of the tax administration.
