The Ministry of Finance is ramping up efforts to prevent tax evasion and streamline financial reporting by mandating electronic invoicing for all business-to-consumer (B2C) transactions from January 1, 2025. This requirement is part of a draft law that proposes significant updates in several areas:
-
Electronic Invoicing System Enhancements:
The national RO e-Invoice system, which is currently used for business-to-business (B2B) transactions, will now cover B2C transactions as well. Businesses will have the option to adopt this system starting July 1, 2024, with mandatory compliance from January 1, 2025. This change means that all invoices issued to consumers must be recorded in the Romania e-Invoice system.
Minister Marcel Boloș emphasized that the introduction of mandatory electronic invoicing is being discussed at the European Union level and that this measure will help align with European standards. It is a critical tool for accurately reflecting economic activities in the RO e-TVA pre-filled tax statements and will not create new obligations for individuals. The measure is essential for combating tax evasion and enhancing the government’s capacity to fund public services.
-
Exemptions and Transitional Provisions:
Specific entities such as diplomatic missions, consular offices, certain international bodies, and NATO forces are exempt from mandatory use of the system unless they opt in. Associations, foundations, and individual farmers applying the special regime for farmers are temporarily exempt until June 30, 2025, allowing time to adapt to the system. They may choose to use the system earlier, and it will become mandatory for them from July 1, 2025.
-
Compliance and Enforcement:
If beneficiaries do not receive invoices through the RO e-Invoice system within the required timeframe for goods or services paid for at the time of delivery, they can report this to the appropriate tax authorities. Enforcement bodies, including bailiffs and the National Agency for the Administration of Undisposed Assets, must use the system when issuing invoices on behalf of suppliers obligated to comply and maintain a register of these enforcement bodies.
-
Updates to Fiscal Marking Machines:
Changes to the law require that, upon request, the tax identification code, rather than the VAT registration code of the beneficiary, be registered on the tax receipt. This code is crucial for generating pre-filled electronic forms with data from ANAF’s databases. Receipts must now include the issuance date and time, the receipt number, and the fiscal series of the fiscal marking machine in a QR code format. This facilitates the automatic data retrieval by taxpayers, aiding in the verification of receipts. If printing these details in a QR code is technically unfeasible, compliance with the law is required within two years from the ordinance’s enforcement.
-
Exclusion of Excise Duties from Budgetary Restructuring:
Government Ordinance no. 6/2019 has been updated to exclude excise duties from the budgetary obligations restructuring procedure. This change supports honest taxpayers, as excise duties are imposed on certain consumable goods and are collected from buyers, with sellers required to declare and pay these taxes to the state.
These measures aim to improve financial transparency, reduce tax evasion, and align Romania’s fiscal practices with broader European standards.
