10 Questions About E-invoicing in Romania, Answered
The electronic invoicing mandate in Romania was officially implemented on January 1, 2024, and now all B2B invoices have to be processed through the RO e-Factura platform. However, this transition is a challenging revolution for many companies that struggle to adjust their processes to the changes in fiscal law. Below is a list of common questions answered by e-invoicing experts.
1. How does the e-invoicing process work?
First, the issuer creates the e-invoice in XML format, following the technical documentation provided by Romanian authorities. Then, the invoice is transmitted to the SPV (“Virtual Private Space”)— a platform facilitating communication between taxpayers and authorities. All issuers, including Romanian and non-resident companies with a Romanian VAT number, must be connected to the SPV. The issuer uploads the invoice to a specific section, where RO e-Factura automatically checks the XML file, verifying its structure, syntax, and semantics. Following the transmission into the dedicated SPV section, the RO e-Factura system assigns an ID number as a reference for system-specific processes and operations.
If no errors are identified, the Ministry of Finance's electronic seal is applied, certifying the receipt of the e-invoice in the RO e-Factura system. The original copy, considered the XML file accompanied by the electronic seal, is made available in the system as a ZIP archive to be archived for future tax audits.
2. What happens if RO e-Factura detects errors?
In the event of errors, the electronic invoice is not considered sent into the system. Instead, the issuer receives an XML file containing identified errors and a ZIP file with the Ministry of Finance's electronic seal, providing details of the errors. To rectify the situation, the issuer needs to correct the errors in the invoice “draft” and upload the updated XML file. Only if no further errors are present will the invoice be considered as issued. This process is the sole method for correcting an invoice before it gets uploaded to the RO e-Factura system.
Once the Ministry of Finance validates an invoice through the seal, it is sent to the system.
3. Can e-invoices be used for VAT deduction?
Starting July 1, 2024, only invoices downloaded from the RO e-Factura system can be used for input VAT deduction. If the beneficiary possesses a different invoice than the one downloaded from the official system, reporting it into their records becomes impossible, and tax authorities will deny input VAT deduction. Furthermore, beneficiaries face the risk of a fine equivalent to 15% of the input VAT value mentioned on the invoice.
4. How can you fix a technically correct invoice?
The RO e-Factura system is designed to verify an invoice's semantics and logical structure, so invoices accidentally sent to the wrong recipient are processed as correct invoices. To address this, the issuer must create a credit note related to the original invoice, upload it to the system, and then issue the correct invoice to the right recipient. While this process results in the creation of three documents, maintaining traceability between them is crucial.
The same principle applies to invoices that are technically accurate but contain errors in prices or other details.
5. What can you do with an invoice that isn’t accepted?
If an invoice issued to the correct customer is not accepted, the issuer must identify the reasons. Rejected invoices prompt an error message sent to the issuer as a ZIP file detailing the mistakes made.
Once identified and corrected, the issuer should re-upload the invoice into the system. It's essential to note that unaccepted invoices do not receive a reference number.
6. What if the customer is not accepting the e-invoice?
In cases where customers don't accept issued invoices due to poor quality or other reasons, the supplier must issue a credit note with the quantity of the goods. Subsequently, the correct invoice needs re-issuing, which should be accepted by the customer. Importantly, the system remains independent of whether the customer accepts the invoice or not. Commercially, if such issues arise, crediting the initial invoice is necessary.
7. Does the e-invoicing mandate include non-resident companies?
Starting January 2024, all businesses operating in Romania, including nonresident companies with a VAT number in Romania, are obligated to use e-invoices. The obligation for nonresident companies to e-report invoices into the system continues after July 2024. Following the end of the grace period, both local and nonresident companies will face the same fines.
It’s also worth noting that foreign companies are not required to use the system to report e-invoices if they don’t have a Romanian VAT number.
8. What are the invoice archiving rules in Romania?
E-invoices must be kept for at least 10 years. This necessitates downloading archive files from the RO e-Factura system, keeping them internally, and presenting them to authorities during an audit.
9. Is it necessary to upload invoices during the grace period?
Managing invoices that were supposed to be sent during the grace period poses some challenges. While fines are not applicable between January and March 31, 2024, it is recommended to upload the invoices into the system before the grace period ends to avoid potential penalties. The lack of clarification in the law makes it advisable to upload all such invoices.
Additionally, it is crucial to stay updated with legal changes in Romania, including official communication, as the tax administration can introduce new rules with short notice, potentially affecting invoice management practices.
10. Can you use a third-party system integrated With RO e-Factura?
Yes, a suitable tool for this purpose is Comarch EDI. This platform is configured to exchange invoices through RO e-Factura using the XML file format, which is compatible with various other formats. Comarch EDI monitors interruptions in the government’s system availability and offers business validations. Moreover, it complies with the requirements of e-document exchange in over 60 countries. Learn more on Comarch EDI website or contact our experts for more in-depth answers to your questions.
There’s more you should know about e-invoicing in Romania – learn more about the new and upcoming regulations.
