Rumanía

European Union Council derogation approval Only a few weeks ago, Kofax’s recent post commented on the European Union’s draft proposal to authorise Romania to mandate B2B e-invoicing in the country.   And e-invoicing advancements are developing swiftly. The Council of the European Union has now approved this request, authorising Romania to mandate B2B e-invoicing in the country. The timeframes for approval remain the same as previously communicated- i.e., from 1 January 2024 to 31 December 2026, or alternatively, when Digital Reporting Requirements for ViDA come into effect.   The EU approval can be located via the link below:  https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32023D1553  The derogation approval represents a significant milestone for Romania’s e-invoicing trajectory. However, while Romania’s e-invoicing mandate is projected for 1 January 2024, this date is certainly not set in stone, and there are already tentative indications that this may be delayed. Kofax is closely monitoring e-invoicing developments in the country.  

Proposed VAT rate changes Having reviewed its existing VAT rates, Romania is now considering the abolition of its 5% reduced VAT rate, with the Coalition government now set to debate the measure.   The abolition of the 5% VAT rate may not provoke immediate changes in the Kofax system, if confirmed. Suppliers may need to raise credit or debit notes some time after a VAT rate ceases to be effective. Nevertheless, Kofax will monitor any confirmation in this respect.  The Romanian government is also proposing that restaurant, catering and cultural services are increased from the 9% reduced VAT rate to 19%, the standard VAT rate in Romania.  Romania is a compliant territory for Kofax, and our e-invoicing solution captures all valid VAT rates in the country. 

Proposed new VAT rate Romania has had a busy 2022, with its implementation of a partial e-invoicing mandate for high-risk fiscal products. With concrete plans for a universal B2B e-invoicing mandate yet to be defined (and likely hindered somewhat by the VAT in the Digital Age (ViDA) proposal), the country is also turning its attention to VAT rates in the country.   The Romanian Senate is pondering a new 9% reduced rate for food and beverages.   The new proposed 9% VAT rate would exclude the following: 

• alcoholic beverages 
• specific non-alcoholic beverages falling under CN codes 2202 10 00 and 2202 99. 

The proposal for the new VAT rate was registered for debate at the Romanian Senate in June 2023.   Romania is a complaint territory for Kofax and we will incorporate all valid VAT rates as part of our e-invoicing solution. We are closely monitoring developments around the new proposed rate and will support it if confirmed.  

EU derogation to mandate B2B e-invoicing Analogous to Germany this month, the publication of the draft proposal for a Council Implementation Decision which authorises Romania to apply for a derogation to mandate B2B e-invoicing represents a promising development towards B2B e-invoicing implementation in the country. Kofax currently supports Romania’s partial e-invoicing mandate implemented in July 2022 relating to high-risk fiscal products. The Romanian government has further publicly advocated a universal B2B e-invoicing mandate, although unlike Germany, initial indications regarding a mandate vision have not yet been specifically disclosed. It is however widely believed to follow the curvature of the high-risk fiscal product partial e-invoicing mandate, where transactions are cleared through the Romanian e-invoicing platform, the RO e-Factura.  The dates for the temporary derogation come into effect sooner than Germany and are currently forecast for 1 January 2024 to 31 December 2026- (or conversely, until the ViDA proposal is adopted).  With the B2B e-invoicing mandate plans currently nebulous, it is envisaged that the derogation may trigger Romania to unveil technical specifications in respect of their B2B e-invoicing model.   Romania is a compliant territory for Kofax and we are closely monitoring e-invoicing developments considering this derogation, and any government announcements concerning the B2B mandate.  Further information in respect of the derogation can be found here:  https://ec.europa.eu/transparency/documents-register/detail?ref=COM(2023)329&lang=en 

Response to VAT in the Digital Age (VDA) proposal Romania is the latest EU member State to comment on the VAT in the Digital Age (ViDA) proposal, following in the path of Italy last month who actively engaged with the proposal and launched a public consultation in response. In respect of the e-invoicing and e-reporting components of the proposal, the Romanian Senate is largely supportive of the proposal. Specifically, however, they have noted that domestic transactions can be aligned with local requirements, rather than those set out in the intra-community reporting obligations. The ViDA proposal has significant ramifications for e-invoicing and e-reporting over the coming years. You can read more about the proposal here.

Use and operation of RO e-Transport System Tungsten has been monitoring the RO e-transport System in Romania. You can read an overview of the System here. ANAF/AVR joint order no. 1190/4625/2022 has approved the operating rules of the national RO e-Transport System and the categories of road vehicles used for the transport of goods with high fiscal risk that are subject to monitoring. The reporting of data on the road transport of goods with high fiscal risk became mandatory on 1 July 2022. Inevitably, there will be situations where both goods with high-fiscal risk are transported together with goods not categorised as such. If both goods with a high fiscal risk and other goods are transported within a commercial relationship, all categories of transported goods will be declared in the RO e-Transport System, and the system will generate a single UIT code. In the case of groupage transport, the UIT codes will be noted on the transport documents related to each commercial relationship that includes goods with high fiscal risk.

Changes to procedure for use of RO e-Invoice Through Minister of Finance (OMF) Order no. 1667/2022, some changes were made to the procedure for using and operating the national RO e-Invoice electronic invoice system, as well as the receipt and downloading of the electronic invoice by recipients in a B2G environment. OMF no. 1667/2022 has introduced the following modifications:

• The recipients of electronic invoices issued in B2G relationships must receive and download e-invoices by accessing the electronic invoice section available in the virtual private space (SPV) on the ANAF portal. The contracting authorities and entities access the system through the ‘Single Access Point’ on the Ministry of Finance' website through the Forexebug national reporting system, section ‘View reports’ − ‘Electronic invoices’
• Any taxpayer registered as a user in the SPV or with the role of viewing reports in the Forexebug national reporting system can receive and download e-invoices in the B2G environment
• For correcting electronic invoices issued in the B2G environment, and where the recipient has objections, the recipient will notify the issuer of the electronic invoice, including through the Electronic Invoice section available in the SPV or through the Forexebug national reporting system.

For B2B e-invoicing in Romania, please refer to our most recent update here.

Delay for proposed universal B2B e-invoicing mandate Last year, we communicated (and successfully implemented) a solution relating to high-fiscal risk products in Romania, which, as of 1 July 2022, now have to pass through the Romanian e-invoicing platform, the e-Factura.   Romania had been considering a phased implementation roll-out of B2B e-invoicing across the country. However, the Ministry of Finance has confirmed that rather than phased implementation, B2B e-invoicing will instead impact all affected entities concurrently, in 2024.   Romania is a compliant territory for Tungsten Network and we are assessing how we can support our suppliers and buyers in Romania once further details of the proposed mandate are available.   We are also acutely aware of the VAT in the Digital Age (ViDA) proposal published by the European Commission in December. This has significant limitations relating to the e-invoicing model countries can deploy, particularly in respect of clearance models. We are monitoring Romania’s plan to accommodate an e-invoicing model that is in line with the ViDA proposals.  

Changes to VAT rates in 2023 At the start of the new year, Romania is introducing the following VAT rate changes: 

• The VAT rate will increase to 9% from 5% for hotel accommodations, restaurant and catering services  

• The list of good subject to the 9% rate has been modified. 

Romania is a compliant territory for Tungsten Network and we support all valid VAT rates in the country. 

Update on penalties for e-transport requirements for high fiscal goods We recently communicated that the penalties for non-compliance in respect of the e-transport requirements for high-fiscal goods in Romania were delayed until January 2023. The Romanian Ministry of Finance has now officially confirmed this via the following link: https://mfinante.gov.ro/documents/35673/5553347/proiectOUGmodifcompletactenormative_21092022.pdf

Proposed tax rate changes The busy fiscal trajectory continues this year in Romania.   The Romanian Tax Administration, ANAF (Agentia Nationala de Administrare Fiscala), is proposing a VAT rate increase in line with the following: 

• Soft drinks: an increase from 9 to 19% 
• In the hotel industry: the delivery of food and non-alcoholic beverages would increase from 5% to 9% 

Tungsten Network continually reviews its solution in Romania and supports all current valid VAT rates in Romania.  

e-Transport system Tungsten Network has recently published an overview of the key characteristics of the e-Transport system in Romania. The system was developed to monitor the transport of goods specifically with high fiscal risk, with the underlying aim of preventing tax fraud. On 1st October 2022, importers and experts will need to oblige with the e-Transport system requirements, should they wish to avoid incurring any financial penalties.   The obligation to declare the goods commenced earlier, on 1st July 2022, although sanctions and fines because of non-compliance will only come into effect from 1 October 2022. 

Extension of reverse charge on specific supplies In addition to e-invoicing mandates, countries deploy a range of complementary measures which serve to reduce tax evasion and by extension reduce the VAT gap. VAT gaps are defined as the projected amount of revenue a government is expected to receive against the actual amount of VAT-related revenue collected by the government. This has been, and continues to be, a perennial problem across Europe which the introduction of e-invoicing mandates seeks to address. The reverse charge is one such complementary mechanism designed to circumvent the difficulties posed by VAT gaps. The reverse charge shifts the onus of paying the VAT to the customer rather than the supplier. This in turn means that suppliers cannot charge VAT on an invoice and knowingly avoid paying VAT after having received payment from a customer. Romania has extended the reverse charge mechanism on the following products:

• A variety of foodstuffs
• The exchange of certificates for greenhouse gas emissions
• The issuance of green certificates
• The delivery of integrated circuit devices

Romania has one of the highest VAT gaps in Europe, with an astonishing 34.9% of VAT unaccounted for in 2019. It is no surprise that governments continue to advance supplementary measures in addition to e-invoicing mandates to thwart substantial VAT gaps.

Potential upcoming VAT changes The fiscal trajectory in 2022 has been a busy one for Romania as it grapples with a partial e-invoicing mandate and multiple tax rates changes. The Ministry of Finance has opened a consultation which proposes an increase in tax rates from 1^st January 2023, in line with the following:

• Fizzy drinks reclassified from 9% reduced VAT rate to standard 19% rate
• Hotel and similar short-term accommodation raised from 5% to 9% reduced rate
• Catering services, cafés and restaurants reclassified from 5% reduced rate to 9% for food and non-alcoholic drinks
• 5% reduced rate on a range of small dwellings.

Romania is a compliant territory in Tungsten Network and we will continue to monitor and support any new tax rates in the country. The Tungsten Network Web Form portal currently supports all valid VAT rates in Romania.

Extension of reverse charge mechanism Romania has one of the largest tax gaps Europe. In 2019, it saw 34.9% of its VAT revenues disappear. To counter this, Romania is deploying several fiscal measures to drastically reduce the VAT gap. The B2G mandate and upcoming B2B e-invoicing mandate on 1^st July 2022 relating to high-risk fiscal product is viewed as a significant measure to achieve this aim. In addition to the e-invoicing mandate, the operation of the reverse charge mechanism also serves to reduce the VAT gap. This is where the responsibility to pay tax shifts from the supplier to the buyer. To this effect, the domestic reverse charge in Romania has been extended until 2026 on the following products:

• Sale of ferrous and non-ferrous waste
• Sale of wood
• Sale of cereals
• Sale of electrical energy
• Sale of construction, partial construction, land (subject to the VAT regime by option or by law)
• Sale of mobile phones
• Sale of devices with integrated circuits
• Sale of PCs, tablets or laptops

Both the seller and buyer must be Romanian taxpayers for the reverse charge to apply.

Potential for mandatory e-invoicing for all B2B transactions We have recently communicated about the upcoming partial e-invoicing mandate in Romania, where high-risk fiscal B2B transactions will need to be cleared through the Romania e-invoicing platform, the RO e-Factura. However, Romania wants to advance its e-invoice mandate yet further- it has requested approval from the European Council for a derogation from the VAT Directive articles 178, 218 and 232 for mandatory transmission of all B2B invoices through the RO e-Factura system. Tungsten is already assisting its suppliers and buyers with the upcoming partial mandate in Romania, and we will continue to monitor developments in the country regarding the derogation.

Extension of VAT-exemption for imports of goods to combat Covid-19 Romania had previously exempted all imports of goods required to combat Covid-19 from the obligation to charge VAT. This was due to expire last year. However, Romania has sought permission from the European Commission to extend this facility, which has now been granted. As such, the draft order prepared by the Ministry of Finance extends the VAT exemption of imports for goods required to combat Covid-19 until 30 June 2022.

Donations of goods and services to Ukrainian people free of VAT Globally, we have seen how the Covid-19 pandemic has overhauled the way countries have assessed and deployed fiscal measures considering growing inflation and hardship. We can expect to see a direct impact on fiscal measures countries deploy considering recent events in Ukraine. Donations of goods and services to persons affected by the armed conflict in Ukraine are to be free of VAT in Romania. We can expect to see bordering countries deploy similar measures.

Proposal of e-transport Romania is further extending the scope of taxpayers subject to fiscal obligations as we approach the deadline of 1st July 2022 for mandatory reporting of ‘high risk fiscal products’ through the national e-invoicing system. In line with other government mandates, a primary objective of this is for tax authorities to have greater visibility over transactions and thus reduce the VAT gap. Romania has now honed in on tax owed to the state budget for the transport of goods specifically with a high fiscal risk; this has been identified as an area of potential exploitation, and the Romanian government is keen to reduce the tax gap in relation to this. To this effect, the Romanian government has published a draft Emergency Ordinance for the establishment of the National Transport Monitoring System of goods with high fiscal risk. If this proposal is adopted, it will become optional from 1 April 2022 and mandatory as of 1st July 2022- therefore following the same timeframes as the reporting of high risk fiscal products to the national e-invoicing system. The following groups that trade goods with high risk are anticipated to be in scope: · the consignee named on the import customs declaration or the consignor named on the export customs declaration, for import/export cases; · the beneficiary from Romania in cases of local transactions or intra-Community supplies of high tax risk goods; · the supplier from Romania in cases of local transactions or intra-Community supplies of high tax risk goods; · the warehouse administrator in case of the high tax risk goods which are subject to intra-Community transactions in transit, both for the goods unloaded in Romania for storage purposes or for the purposes of forming a new transport of one or many batches of goods, or for the goods loaded after storage or after a new local transport of goods was formed for one or many batches of the goods. Tungsten Network will monitor developments regarding when this draft emergency Ordinance will be approved.

Virtual Private Space (VPS) – mandatory for taxpayers Virtual Private Space (VPS) becomes mandatory for Romanian taxpayers to enrol as of 1st March 2022. VPS is the electronic system which allows the exchange of documents between taxpayers and government administrations.

Obligation for retail stores to use e-invoicing for high-risk fiscal products At the start of the year, we communicated that Romania would mandate e-invoicing for B2B transactions which related to ‘high risk fiscal products’. This obligation now extends to retail stores in Romania. This means that if customers request invoices, these will now have to be issued through the RO e-Factura system, if the transaction involves a high-risk fiscal product. The extension of taxpayers now subject to the mandatory e-invoicing requirement relating to high-risk fiscal products demonstrate Romania’s motivation to oversee more tax transactions and reduce tax fraud further in the country.

Mandatory usage of RO e-Factura for high fiscal risk products for B2B transactions

The Romanian government published Emergency Ordinance number 130/2021 on 18 December 2021, which states that ‘high fiscal risk products’ must soon be issued through the RO e-Factura. The Emergency Ordinance provides a few key dates:
• A voluntary phase from 1st April 2022 to 30 June 2022;
• This then becomes mandatory from 1st July 2022.
The requirement to issue B2B invoices through the RO e-Factura is currently optional- and both the supplier and the buyer must be registered through the RO e-Factura to do so. However, requirements will be much more demanding from 1st July 2022 for transactions involving high risk fiscal products – these must be issued through the RO e-Factura, regardless of whether the buyer is registered in the RO e-invoice registry or not.
Affected taxpayers must ensure that they have the technical infrastructure to issue invoices in XML format, in accordance with the technical and usage specifications of the RO_CIUS electronic invoice in Romania.
The National Agency for Fiscal Administration (ANAF) have provided 5 categories that come under the definition of a high-risk fiscal product- these are fairly wide in scope:
• Certain foods (including fruit and vegetables, amongst others)
• Alcoholic beverages
• New constructions
• Mineral products
• Clothing and footwear
ANAF plans to update this list regularly.
Tungsten is monitoring developments in Romania and what this means for our solution.

Procedure for registering with RO e-invoice Register & Core invoice usage specifications for the Romanian e-invoicing system

The Romanian government has introduced Government Emergency Ordinance no. 120/2021 which regulates B2G e-invoicing. Taxpayers in the B2B sphere can also now choose to issue and send invoices through the RO e-invoicing system, but it is not yet mandatory to do so.

Tungsten is monitoring developments in the Romania B2B landscape and will keep you updated.

The Minister of Finance Order no. 1366/2021 has also approved the core invoice usage specifications (RO_CIUS) for e-invoicing. These specific operational rules are compliant with the SR EN 16931-1 European standard for e-invoicing. This Order contains the core invoice usage specifications for e-invoices and how to use them.

New legal provisions for e-invoicing published

Recently, Government Emergency Ordinance (“GEO”) no. 120/2021, regulating the structure of the electronic invoice and creating the framework for achieving the basic technical specifications of the electronic invoice in Romania, was published in the Official Gazette. This includes detailed instructions regarding the Electronic Invoice RO e-factura.
The RO e-factura will become operational within 30 days of the GEO (so by 6 November 2021).
Economic operators can opt to use the national e-invoicing system and issue RO e-factura in both a B2G and B2B context.
The Ministry of Finance plans to issue a further order in the future to approve details around the use and operation of the RO e-factura system for B2B or B2G transactions and technical specifications.

Status update on B2G & B2B e-invoicing

Romania is making some strides with e-invoicing. The Romanian Ministry of Public Finance announced on 14 September 2021 that the pilot-programme “E-factura” will become operational starting September 2021.  

For now, this programme will address only the uploading, storing and downloading of invoices for B2G transactions.  

The Romanian Ministry of Public Finance mentioned that such a pilot program will lead to further developments and also provide some further insight into how B2B e-invoicing can be developed.   

Implementation SAF-T as from 1 January 2022

The National Agency for Fiscal Administration (“NAFA”) has started the implementation of SAF-T in Romania.

The preliminary SAF-T structure was published in April 2021, while the related guidance and legislation is expected to be published this summer. The SAF-T related software at NAFA’s level is expected to be finalised by the end of July 2021, allowing voluntary testing together with large taxpayers to be performed during August – December 2021. January 2022 will be the first reporting month for large Romanian taxpayers, and SAF-T reporting periods will follow the VAT reporting period (e.g. monthly or quarterly).

The technical specifications have been released and can be found on the ANAF portal.

Más incorporaciones

El ministro de economía rumano ha anunciado que el gobierno de Rumanía tiene la intención de introducir un sistema de facturación electrónica. No tenemos más información en este momento. Seguiremos de cerca cualquier anuncio al respecto y le informaremos sobre el progreso de las próximas actualizaciones de cumplimiento.

Rumanía implementa el pago fraccionado del IVA

La ley sobre el pago fraccionado del IVA obligatorio entró en vigor el 1 de enero de 2018. Este sistema ha sido opcional desde el 1 de octubre de 2017.