Electronic invoicing, mandatory from January 1, 2024 for all transactions between companies

published in July 28, 2023

Electronic invoicing will be mandatory, starting January 1, 2024, for all transactions carried out between taxable persons established on the territory of Romania.

The measure will be applied until December 31, 2026, the Ministry of Finance announced on Friday.

If it considers it necessary to extend the special measure, Romania may submit to the Commission a request for extension, together with a report evaluating the effectiveness of the national measures from the perspective of combating VAT fraud and tax evasion, as well as simplifying VAT collection.

"It is a decision that I welcome and that will be of great benefit to us. It will mean increased transparency, precise monitoring of transactions and real-time reporting to tax authorities, being a valuable tool in our efforts to protect the public budget and ensure fair competition among taxpayers. The fact that electronic invoicing ensures an accurate and verifiable recording of commercial transactions facilitates the verification and audit process, ensuring that transactions comply with tax regulations and have not been fraudulently manipulated. The implementation of mandatory electronic invoicing eliminates the possibility of using false or duplicate invoices, because each transaction is recorded uniquely. Moreover, there are changes that will allow us to eliminate as many tax declarations and formalities as possible, which will reduce the tax burden borne by taxpayers", Minister Marcel Boloș said.

In the coming period, the categories of economic operators that have the obligation to issue electronic invoices in the business-to-business (B2B) relationship and to transmit them through the national electronic invoice system RO e-Factura will be established, as well as the date from which this obligation comes into effect.