B2B e-Invoice – from January 1, 2024, invoices are valid only in RO e-Invoice
- e-Invoice mandatory for all transactions within B2B relationships
- What do you need to know about RO e-Invoice B2B?
- How does it affect business activity?
- Who is B2B e-Invoice intended for?
- A brief history of e-Invoice
- How will RO e-Invoice B2B be implemented and what are the stages?
- What are the applicable sanctions?
- RO e-Invoice integrated with SeniorERP and SeniorXRP
The reporting of electronic documents in the RO e-Invoice system became mandatory starting January 1, 2024, for all transactions carried out by taxpayers in B2B (Business to Business) relationships between taxable entities registered in Romania. Subsequently, from July 1, 2024, e-Invoice became the only channel through which invoices may be transmitted to recipients, with any other form of these documents being devoid of fiscal effect.
e-Invoice mandatory for all transactions within B2B relationships
ANAF introduced the mandatory use of the RO e-Invoice system for all invoices issued in Romania, as provided by Law no. 227/2015 and Law no. 199/2023 regarding the Fiscal Code. Initially, this requirement applied only to transactions between companies and public institutions (B2G), as well as to goods with a high risk of tax evasion. Subsequently, the system was extended to all B2B transactions carried out by economic operators established in Romania.
In addition to access to real-time financial data, facilitating, monitoring, and verifying commercial transactions, this law ensures greater fiscal transparency and reduces the risk of errors or financial fraud. The new provisions apply both to Romanian economic operators and to foreign operators carrying out economic activities in Romania.
To avoid additional effort, organizations sought to streamline this process. Therefore, in order to successfully implement the e-Invoice system, it is essential to use high-performance software capable of efficiently managing the submission and download of invoices received from suppliers through the National RO e-Invoice System. Integrating an ERP software solution with the ANAF software system for the automatic transmission of financial documents in electronic format can bring numerous benefits, such as: significantly reducing human errors, streamlining the invoicing process, and improving financial reporting.
What do you need to know about RO e-Invoice B2B?
The B2B e-Invoice system requires suppliers to generate documents in XML format, digitally sign them, and transmit them electronically to customers through an online platform authorized by ANAF.
Recipients can view and download the received invoices in electronic format, thus eliminating the need to print or archive them on paper. Therefore, the implementation of the B2B e-Invoice system reduces the time required to transmit financial documents, validates the data at the time of submission, and automatically provides the issuer with proof of delivery, making the process more efficient.
How does it affect business activity?
Who is B2B e-Invoice intended for?
A brief history of e-Invoice
Electronic invoicing in Romania started in March 2020, with the launch of the “e-Invoice” project – a mandatory electronic invoicing system by the Ministry of Finance and the National Agency for Fiscal Administration. This project aims to increase the efficiency of tax collection, mainly VAT, and combat tax evasion.
Subsequently, Emergency Ordinance 120/2021 presented in October 2021 all the details regarding the implementation of the e-Invoice system in Romania. Reporting obligations were gradually introduced for various categories of entities.
On April 1, 2022, the reporting obligation became applicable for companies in the tourism sector that accept holiday vouchers, in accordance with GEO 131/2021.
Economic operators had the option to choose whether to use the e-Invoice system until July 1, 2022. After that date, electronic invoicing became mandatory for all public procurement contracts and for B2B transactions involving products with high fiscal risk.
In accordance with the EU decision of July 2023, starting January 1, 2024, issuing invoices through the e-Invoice system became mandatory for all economic operators in Romania.
How will RO e-Invoice B2B be implemented and what are the stages?
1. Transition period
In the first stage of the large-scale implementation of the system, between January 1 and June 30, 2024, suppliers in Romania were required to report in the RO e-Invoice platform all B2B invoices issued for taxable transactions carried out in Romania. This requirement also applied to foreign taxpayers registered for VAT purposes in Romania, as well as to Romanian suppliers issuing invoices for transactions involving government entities (B2G).
Thus, in the initial implementation stage, the above-mentioned taxpayers were obliged to generate financial documents both in XML format and as traditional paper invoices, and to register them in the RO e-Invoice system through the Virtual Private Space (SPV).
Documents related to exports of goods carried out by the supplier or by another person on its behalf, as well as those intended for intra-community supplies of goods departing from Romania, are exempt from these provisions.
2. Elimination of invoices in the old format and sanctions
In the second stage, starting from July 1, 2024, paper invoices or invoices in the old electronic format will no longer be recognized for fiscal purposes. Only documents generated electronically, in XML format, and transmitted through the RO e-Invoice platform will be accepted for VAT deduction.
Taxpayers must prepare in advance to comply with these requirements in order to avoid possible fines, which are equivalent to the VAT amount stated on the respective invoice. In this context, following the implementation of the e-Invoice system, companies in Romania must adapt their internal systems in order to issue electronic invoices and transmit them through RO e-Invoice.
Read also: Accounting software for invoicing and bookkeeping. How do you choose the best accounting software?
What are the applicable sanctions?
The deadline for submitting invoices in the RO e-Invoice system is five days, calculated from the invoice issue date. Failure to comply with this timeframe constitutes an offense and is subject to a fine. Therefore, for legal entities classified as large taxpayers, the fine ranges from RON 5,000 to RON 10,000. In the case of medium taxpayers, the sanction ranges from RON 2,500 to RON 5,000, while for other legal entities, including individuals, the fine ranges from RON 1,000 to RON 2,500. All these categories are defined in accordance with the legislation in force.
During the period January 1 – March 31, 2024, no sanctions were applied, this being considered a transition and adaptation period to the new system.
RO e-Invoice integrated with SeniorERP and SeniorXRP
Senior Software updated its ERP solutions and implemented a series of new functionalities within them in order to support the companies targeted by RO e-Invoice and ensure that all users can comply with the legal provisions.
Moreover, the systems SeniorERP in Romania – resource management software with rapid implementation – and SeniorXRP in Romania – resource management software with extended functionalities for managing complex businesses – are connected to ANAF’s software system for the automatic transmission of electronic invoices. Once the interconnection between Senior Software’s ERP solutions and the RO e-Invoice system is completed, invoices can be sent to ANAF with a single click. At the same time, the SeniorERP and SeniorXRP software solutions help strengthen the transparency and consistency of financial data, facilitating informed decision-making and improving the company’s operational efficiency within the RO e-Invoice system.
Find out how ERP software solutions can help you with invoicing through the RO e-Invoice system
The ERP systems provided by Senior Software are connected to ANAF’s software system for the automatic transmission of electronic invoices