Recently, Romania’s Ministry of Finance made the announcement that it will introduce national e-invoicing in 2022. This makes them the latest addition a growing list including China, India, and various South American nations that have adopted this technology.
As technology progresses, more and more nations are beginning to implement e-invoicing solutions. If you’ve been curious about invoicing software and the recent news in Romania, we’re here to help. Read on for more detailed information on e-invoicing and the system’s implementation.
First, why is Romania implementing this new system? E-invoicing software has numerous benefits. For example, e-invoicing is much easier in today’s more internet-driven world than using physical copies.
Archiving and managing tasks is also much easier with digital copies. This can greatly simplify tracking transactions, especially over long periods of time. In fact, Romania’s plan includes a 10-year archiving period.
There is also a 25-year archiving period for invoices related to capital goods. There are mentions of archiving abroad, which is allowed under certain conditions.
The e-invoicing standard is set for installation as soon as September 2022. While this is the goal, it’s also recognized as highly ambitious scheduling – mostly because it leaves less than a full year for implementation. The architecture and systems needed to bring the system online may take longer to be implemented themselves.
Proper installation of the necessary infrastructure will require both public consultation and myriad preparations on the information technology front. Thousands of taxpayers will need to make preparations of their own to use the e-invoicing system. While the current timeline is ambitious, it’s still a great step towards implementing all of the systems needed for a major evolution of the nation’s economy.
This phase will set the groundwork for much more rigid e-invoicing systems in the future. Eventually, the Ministry intends to move on to a country-wide mandate, ultimately moving on to include B2B transactions. From there, further developments are expected to be introduced on a regular basis. The pilot program to test B2G invoicing, e-Factura, launched in mid-September, with expectations of a national system coming online by the end of next year.
These e-invoice solutions are already available for companies and contractors that work with the general Romanian government. These groups are proactively switching to e-invoicing in an effort to bring Romania more in line with the European standards of the field.
Under B2G transactions, all contracting authorities will use the invoices for receiving. For B2B, the buyer’s consent is required. There are no explicit requirements under these invoices being mandatory for issuing.
Romania’s intent with this expedited evolution is to allow for more clarity through streamlined data-gathering, paving the road to reducing the VAT gap – a common issue in many other countries that are currently embracing similar strategies. Digitizing the process as a whole allows for easier automation of tax compliance, ultimately benefitting businesses and governments alike.
With the launch of e-Factura, e-invoicing will reach full operational capacity in Romania before much longer. However, whether the nation will be able to reach its goal of September 2022 for full implementation is still unclear.
Even if Romania falls short of this ambitious goal, the nation is already well on its way to meeting the European standards of e-invoicing solutions in today’s information age.