Electronic invoicing will become mandatory from July 1, 2024, reports a a project adopted by the PSD-PNL coalition, which contains various tax increases.

More precisely, “it is proposed to establish a system of reporting on invoices in the period from January 1 to June 31, 2024 without the application of sanctions in the first three months and the transition to the mandatory transfer of invoices through the RO electronic invoice system to B2B (business to business) relations, starting from July 1, 2024.”

“Measures will contribute to increasing revenues to the consolidated state budget, reducing tax evasion, as well as strengthening budgetary discipline at the level of business entities and the responsibility of creditors in the budget process,” the document says.

How does an electronic invoice help?

Electronic invoicing (e-Invoicing) will allow tax authorities to timely and automatically check the consistency between the declared VAT and the VAT payable.

Such automatic verification would significantly improve the analytical skills of the Romanian tax authorities.

“Furthermore, the introduction of mandatory electronic invoicing will be a powerful tool for tracking VAT fraud chains in real time, allowing tax authorities to take immediate measures to identify and stop taxpayers from participating in such fraudulent activities,” the EU Council said in its decision , through which Romania can apply this system.

According to the cited source, Romania believes that the introduction of the special measure will also benefit taxpayers by digitizing their invoicing processes and reducing their administrative burden, while ensuring a fair competitive environment for taxpayers.

“Digitizing invoicing processes will ensure faster payments, save on transmission costs, process invoice data quickly and cheaply and reduce filing costs for taxpayers. The introduction of the special measure will lead to the abolition of the current obligation to submit information on domestic supplies and services, and will reduce the administrative burden on taxpayers,” the document says.

We remind you that currently the system of electronic invoices is used in business-to-state (B2G) relations for goods with a high fiscal risk.