The changes to Romania's laws related to e-invoicing, e-transport, and e-VAT

Details
Hits: 8

vlag UK

The amendments to Romania's legislation regarding e-invoicing, e-transport, and e-VAT have been formally enacted via Government Emergency Ordinance (GEO) no. 138, which was published on December 4, 2024. 

This ordinance primarily aligns with the stipulations presented in the draft GEO. Significant updates comprise:

E-invoicing

As of January 2025, simplified invoices will be included in the mandatory e-invoicing and reporting requirements. It is specified that for mandatory B2B e-invoicing among registered taxpayers, transactions with a place of supply outside Romania are exempt from this requirement. In B2C transactions where the consumer does not supply a VAT ID, e-invoices must utilize a 13-digit placeholder of zeros instead of the beneficiary's VAT ID.

E-Transport

Entities holding Authorized Economic Operator (AEO) status will receive an extended grace period regarding penalties for failing to comply with the mandatory reporting requirements of international transport within the e-transport system. Consequently, penalties will be enforced beginning March 31, 2025.

E-VAT

The compliance notification mandated by the e-VAT regulations, along with the associated penalties, has been deferred to July 2025. Initially set to commence on January 1, 2025, the rollout of the e-VAT system and its penalties will now take place in July 2025. This system requires tax authorities to generate pre-filled VAT returns using data obtained from sources such as e-invoices, e-transport documents, and SAF-T records. Should a taxpayer's VAT declaration differ from the information in the pre-filled return, they will receive a notification from the ANAF and may face penalties.

The Ministry of Finance of Romania has presented proposals to improve fiscal oversight, especially concerning transactions presently exempt from reporting. The proposed amendments highlight the government's commitment to modernizing tax compliance and tackling the practical difficulties businesses encounter. An update to the technical documentation of the e-Factura system is anticipated soon, which will offer additional clarity regarding these modifications.

Please feel free to contact us if you want to learn more.

KGT is a SAP partner for PE services and SAP Build partner, and to become an SAP partner, strict due diligence requirements must be met, including having certified SAP consultants. You can find us at: https://partnerfinder.sap.com/profile/0001925409

SAP add-on via clearance model

Roadmap to Tax and IT function effectiveness

KGT SAP add-ons for SAF-T, e-invoicing and MTD UK for VAT work as a standalone application within the SAP system and do not change existing customer SAP functionality or processes. It is fully configurable with a custom namespace /KGT.

KGT partnered up with SAP regarding 'SAP Advanced Compliance Reporting for SAP HANA'. The 'Advanced Compliance Reporting' (ACR) service enables you to configure, generate, analyze, and electronically submit statutory reports that contain indirect taxes, such as value-added tax.

KGT also provides S/4 HANA transformation support.

Contact us