The digital wave is touching every corner of the business world, and Romania is no exception. With EC authorization in place and Government ordinances supporting the transition, Romania is gearing up for a digital revolution in invoicing. Let’s delve into the upcoming changes in B2B e-invoicing in Romania and what they mean for businesses.
Regulatory Backdrop
Romania has secured EC authorization to apply a derogation from Articles 178, 218, and 232 of the VAT Directive 2006/112/EC. This authorization is valid for three years, spanning from January 2024 to December 2026, or until the EU chooses to adopt the ViDA proposal.
An Immediate Shift, Not a Gradual One
One noteworthy point is that the shift to electronic invoicing between companies will not be a gradual process. It will be mandatory for all companies as of January 2024.
Government Frameworks and High-Risk Categories
The operational groundwork for this is laid out in Government ordinance 120/2021. Furthermore, Government ordinance 130, published on December 17, 2021, has already mandated e-invoicing starting July 2022 for companies dealing in high tax risk product categories. These categories, susceptible to tax evasion, are defined in ANAF 12/2022 ordinance, published on January 6th, 2022, and include sectors like fruits and vegetables, alcohol, construction, mineral products, and clothing and footwear.
B2G Transactions Also Go Digital
It’s not just B2B; e-invoicing will also be mandatory for Business to Government (B2G) transactions from July 1, 2022, according to Law 139/2022. All transactions with Romanian public bodies will require issuing electronic invoices through the national invoicing system RO e-Factura in UBL 2.1 format.
The Pre-clearance Mechanism
Romania is joining the global trend of live-reporting in e-invoicing. The process involves the following steps:
- Issue Invoice: The vendor generates an XML invoice through the RO e-invoicing platform.
- Validation Checks: Minimal validation and information requirement checks are performed. If there’s a failure, the vendor is notified to correct and resubmit.
- Official Certification: The Ministry of Public Finances certifies the invoice with its digital signature.
- Customer Receipt: The invoice is sent to the customer, which marks the tax point of the invoice for VAT purposes.
This pre-clearance mechanism will last until the end of 2026.
How Does SAP Document and Reporting Compliance Help?
Navigating through a sea of regulations can be overwhelming. SAP Document and Reporting Compliance can tailor your management and accounting systems to meet the specific requirements in Romania. Feel free to leave us your contact details, and our expert team will get back to you ASAP, with no strings attached.
Why Comweg?:
At Comweg, we are experts in SAP Document and Reporting Compliance, and we have a deep technical understanding of the einvoicing and statutory reporting around the world. Our team of experienced consultants will work with you to ensure that you are fully compliant with the legal regulations. We will work with you to implement SAP DRC in your company, and we will provide ongoing support and maintenance to ensure that the system runs smoothly.
Project
Setting up a project for SAP Document and Reporting Compliance requires expert knowledge and experience. Consultants with specialized skills can help enterprises navigate the process, ensuring a successful and efficient implementation of SAP Document and Reporting Compliance in their systems.
Typical project lead time per country:
3-4 Months
Implementation
Successful implementation of SAP Document and Reporting Compliance requires effective collaboration between internal and external consultants. A dedicated team with specialized skills and knowledge can ensure a smooth and efficient implementation, delivering the benefits of SAP Document and Reporting Compliance to the enterprise.
Maintenance
To ensure long-term success of SAP Document and Reporting Compliance, proper maintenance and support is crucial. Externalizing this process to a partner can provide access to specialized skills and resources, helping to ensure a smooth and efficient maintenance and support experience. With a partner's expertise and dedicated support, enterprises can be confident in the continued success of their SAP Document and Reporting Compliance implementation.
Conclusion
The landscape of B2B e-Invoicing in Romania is set for an overhaul, and businesses must be prepared to adapt. With mandatory rules kicking in soon, now is the time to align your invoicing systems and processes with these new guidelines.
Don’t let this regulatory shift catch you off guard. Be ready for the future of invoicing in Romania with SAP Document and Reporting Compliance.
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