Navigating Romania's E-factura revolution

Ioana Cretu -

If you're a freelancer or a small business owner operating in Romania, there are crucial changes on the horizon that you need to be aware of, particularly in the realm of invoicing.

Starting January 1, 2024, a new legal mandate (law 296/2023) comes into effect, requiring business operators in Romania to submit their issued invoices to the national system known as RO e-Factura. This change impacts a range of commercial entities, including SRLs/PFAs/IIs/IFs/SAs/ONGs, and others actively engaged in economic activities.

What's changing in 2024?

In essence, all commercial entities, regardless of their legal structure, are obligated to send their invoices to the ANAF servers. However, there's an exception for B2C (business-to-consumer) relationships; for individuals (except for holiday voucher invoices, which have a separate process), the invoices will be directed to the e-Factura system.

How can you comply with this regulation?

Option 1: Doing it on your own

A) Acquiring a Digital Certificate

The first step is purchasing a digital certificate from a recognized company. Once obtained, the certificate needs to be registered with the ANAF. This involves a process outlined in Declaration 150 and activating the Virtual Private Space (SPV). Depending on your local administration, consider 1-2 visits to the ANAF. Some administrations even allow for the submission of declaration 150 through a contact form.

B) Activating the Virtual Private Space (SPV)

Registration in the SPV requires filling in identification details on the ANAF webpage and uploading specific supporting documents in .zip format (for example, for PFAs: registration certificate, certificate of registration, ID). After receiving the confirmation email, you gain access to the virtual space to test and send invoices to business clients. This account also facilitates the sending and receiving of administrative-fiscal documents and provides access to information regarding social contributions and fiscal obligations.

Option 2: Seeking assistance from someone with an existing digital certificate

Engage in a conversation with someone who already possesses an electronic signature, typically your accountant. They can authorize your billing account in existing invoicing applications under their signature. With a simple click, you can send invoices to the ANAF software, streamlining the process. The authorization process needs to be renewed every three months.

Important Notes:

  • The accountant is not responsible for the entire process but helps with the transition. It's a migration from the previous way of preparing invoices; you'll still prepare and send invoices, but now you can use their electronic signature without undergoing complex steps.
  • The same steps apply to whoever holds the electronic signature, whether they are the owner/partner, accountant, or another relevant party, and the person with the electronic signature can access the account with all necessary information.

Other Key Considerations:

  • E-Factura Submission Deadline: Until July 1, 2024, the submission deadline is 5 working days; after this date, it reduces to 5 calendar days.
  • No Penalties Until March 31, 2024: There won't be penalties imposed for missing the submission deadline until March 31, 2024.
  • VAT Deduction Criteria: Starting July 1, 2024, VAT can only be deducted if the supplier's invoice is sent through e-Factura. Failure to do so means VAT cannot be deducted from the invoice.

Fines for Non-Compliance:

  • Large Taxpayers: Fines range from 5,000 to 10,000 lei.
  • Medium Taxpayers: Fines range from 2,500 to 5,000 lei.
  • Other Taxpayers: Fines range from 1,000 to 2,500 lei.

Moreover, any failure to transmit invoices through the national system for electronic invoicing RO e-Factura constitutes a misdemeanor. If recorded by recipients (taxable persons established in Romania according to art. 266 para. (2) of the Fiscal Code) in a B2B relationship, without transmission through the national system, it is punishable by a fine equal to the amount of VAT stated in the invoice.

In conclusion, navigating the new landscape of e-invoicing in Romania requires a proactive approach. Whether you choose to handle it independently or seek support from someone with an existing digital certificate, being informed and taking the necessary steps now will ensure a smoother transition and compliance with the upcoming regulations.

More information about RO e-factura can be found in this article: Navigating Romania's E-Invoicing landscape: A practical guide for freelancers and small business owners.