Romania – E-invoicing for B2B transactions from 2024

On 25th July 2023, the European Commission issued the Council Implementing Decision (EU) 2023/1553, authorising Romania derogation request to implement a B2B electronic invoicing (“e-invoicing”) mandate.

Whereas currently B2B e-invoicing only applies to certain transactions that have a high risk of VAT fraud, this decision allows Romania to implement mandatory e-invoicing for all B2B transactions made between taxable persons established in Romania. The EU derogation is applicable from 1st January 2024 until the 31st December 2026, or from the date on which Member States shall be required to adopt any national provisions required in line with ViDA.

It is envisaged that instead of a phased roll out, the implementation of electronic invoicing between Romanian established companies will be mandatory as of 2024 with a set date yet to be confirmed.

This step means that Romanian established companies will be obliged to issue e-invoices for all B2B transactions to other Romanian established businesses. Furthermore, they will need to transmit them through the national electronic system RO e-Factura. This should benefit Romanian companies as it should eliminating manual processes and paper invoices which will increase the business efficiency while reducing the risk of errors. It will also be beneficial to the Romanian tax office as it should reduce tax evasion and fraud, providing transparency and real time access to invoicing data.