Categories of companies that must implement mandatory e-invoicing

By GEO 120/2021, the Ministry of Finance receives the power to build, develop and manage the national electronic invoicing system RO e-Invoice. The national e-invoicing system RO e-Invoice aims to receive electronic invoices from issuers in accordance with the invoice structure designed in line with European standards.

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Thus, from 1 July 2022, with the publication of Law 139/2022 authorising Emergency Ordinance 120/2021, invoices must be delivered electronically via the national e-Invoice system in the relationship with state-contracted authorities, the so-called B2G relationship.

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Economic operators considered as B2G contractors - who have commercial relations with public authorities/institutions - are obliged to issue electronic invoices and send them through the national electronic invoicing system RO e-Invoice in .xml format. This e-invoice will be distributed to recipients via the Virtual Private Space.

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Until the adoption of this legislation, the RO e-Invoice system was optional for B2G "Business to Government" companies, i.e. for public procurement.

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However, unlike other traditional media, e-invoicing has long been seen as a means by which two entities can communicate much more easily and quickly. If you're not yet familiar with the concept of e-invoicing, or if you want to find out more about how it can help your business, find out more HERE.

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Who is obliged to use e-invoicing?

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Economic operators carrying out transactions in goods which present a high risk of tax evasion

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If two economic operators (B2B) carry out transactions in goods which pose a significant risk of tax evasion, they must submit invoices using the electronic invoicing system from 1 July 2022.

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Travel agencies, hotel chains and accommodation establishments

Property developers and construction companies

All those involved in government procurement contracts

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However, following the adoption of Law 139/2022, the following distinction is made:

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Foreign economic operators may use e-invoicing in B2G contracts, in which case the contracting authority/entity is obliged to accept this type of invoicing;

Romanian economic operators are obliged to use only electronic invoicing in B2G contracts.

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Other things to note about e-invoicing

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A qualified electronic signature certificate is required to access the Virtual Private Space

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Economic operators must be registered in the Virtual Private Space (VPS) in their own name or through a legal representative, a designated representative or an authorised representative in order to use the RO e-Invoice IT system. It should be recalled that access to the Virtual Private Space is only possible through the use of a digital certificate for electronic signature.

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After obtaining it and registering/accessing the SPV, form 084 - Application for registration in the RO e-Invoice Register is required and can be done directly from the SPV.

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Electronic invoicing in B2B

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In a B2B business relationship, the issuer of the e-invoice may choose to deliver the e-invoice to the recipient via the e-invoicing system, requiring both parties to register in the e-Invoice Register.

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As regards economic operators selling items with a high tax risk, they are obliged to use e-invoicing from 1 July 2022.

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According to OPANAF No 12/2022, among the goods with high fiscal risk are:

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- vegetables, fruits, roots and tubers, other edible plants;

- alcoholic beverages;

- new constructions;

- mineral products (natural mineral water, sand, gravel)

- clothing and footwear

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Electronic invoicing in B2G

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In the field of public procurement, the e-invoice can be processed entirely in electronic format using IT systems accessible to recipients of e-invoices issued in a B2G relationship. The processing of the e-invoice includes going through the budget execution phases.

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With Banqup, the multinational platform dedicated to entrepreneurs and small and medium-sized companies, you create and send invoices in just 60 seconds, get an overview of all invoices in your company and manage your administration activities more easily. Try the Banqup solution for free and make the best decision for your business!

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