Romania is making significant strides in digitalizing its invoicing processes, aligning with European standards and improving tax compliance. The Romanian government has implemented mandatory e-invoicing for various sectors, and the country’s e-invoicing landscape is set to expand further with upcoming mandates. Here’s an overview of the current state of e-invoicing in Romania for B2G, B2B, and B2C transactions.

B2G E-Invoicing: Mandatory Since 2022

As of July 1, 2022, B2G (business-to-government) e-invoicing has been mandatory in Romania. Public sector suppliers are required to issue e-invoices through the official platform, RO-eFactura. The platform accepts invoices in XML format, specifically using the UBL 2.1 or CII syntax, based on the RO_CIUS specifications. These formats are fully compliant with the European Standard EN16931, ensuring compatibility with other EU countries.

• Scope: E-invoicing is mandatory for all public sector transactions, with the tax authority maintaining a list of public administrations that are within the mandate’s scope.

• Archiving requirements: Invoices must be archived for 10 years, a common practice across European countries to ensure transparency and compliance with tax regulations.

B2B E-Invoicing: Mandatory Since 2024

Starting from July 1, 2024, Romania extended mandatory e-invoicing to B2B (business-to-business) transactions. Businesses are now required to use the RO-eFactura platform for all B2B invoicing, and like B2G transactions, the e-invoices must be issued in XML format (UBL 2.1 or CII) following the RO_CIUS specifications.

Prior Developments and High-Risk Goods

Before the mandatory implementation for all B2B transactions, e-invoicing was already possible on a voluntary basis from November 2021. Additionally, from July 1, 2022, B2B e-invoicing was mandatory for certain high-risk goods that were prone to tax evasion. This measure was a key step toward reducing VAT fraud in sectors that were more vulnerable.

• E-Reporting: Alongside e-invoicing, Romania also introduced mandatory e-reporting. The RO-eFactura platform automatically handles e-reporting as part of the B2B invoicing process, providing real-time updates to the tax authorities.

• Archiving requirements: As with B2G invoices, B2B e-invoices must be archived for a minimum of 10 years.

B2C E-Invoicing: Set to Become Mandatory in 2025

The Romanian government has announced that B2C (business-to-consumer) e-invoicing will become mandatory starting from January 1, 2025. Penalties for non-compliance will be enforced from July 1, 2025. However, the Ministry of Finance has stated that certain exceptions will apply, particularly for associations, foundations, and entities under special regimes, such as farmers. For these exceptions, the mandate will take effect from July 1, 2025.

Implementation and Uncertainties

While the B2C mandate is set, the specifics of how it will be implemented are still under discussion. There are two possible approaches:

1. Pre-clearance: Similar to the B2B e-invoicing system, B2C e-invoices may require pre-clearance through the RO-eFactura platform before the transaction is completed.

2. Post-transaction reporting: Alternatively, the government may opt for a simpler e-reporting obligation, where businesses report the B2C transaction after the fact, rather than undergoing pre-clearance.

In the meantime, voluntary B2C e-invoicing through the RO-eFactura platform has been available since July 1, 2024, allowing businesses to adopt digital invoicing ahead of the mandatory deadline.

Benefits of E-Invoicing in Romania

The transition to mandatory e-invoicing in Romania brings numerous benefits for both businesses and the government:

1. Increased Tax Compliance: By using the RO-eFactura platform, businesses can ensure that all invoices meet the necessary tax compliance requirements, reducing the risk of errors and fraud.

2. Improved Efficiency: E-invoicing eliminates manual processing, streamlining operations for businesses and allowing for faster invoice processing and payment.

3. Cost Reduction: Moving to digital invoicing helps businesses reduce paper and administrative costs, as well as minimize errors associated with manual data entry.

4. Real-time Monitoring: The Romanian tax authorities gain real-time visibility into business transactions, which helps reduce VAT fraud and ensures better oversight of financial activities.

5. Standardization Across Europe: By complying with the EN16931 standard, Romanian businesses can easily exchange e-invoices with partners across the EU, improving cross-border trade.

As Romania continues its transition toward full e-invoicing, businesses need to prepare for the upcoming mandates, particularly for B2C transactions starting in 2025. The use of the RO-eFactura platform and adherence to the XML format (UBL 2.1 or CII) will be crucial to ensuring compliance with the evolving regulatory landscape.

By embracing e-invoicing now, Romanian businesses can not only stay ahead of the deadlines but also reap the benefits of improved efficiency, cost savings, and enhanced tax compliance.