Romania: VAT in the Digital Age (ViDA)

Overview: Romania’s digital tax evolution

Romania has taken major steps toward tax digitalisation, rolling out in 2022 its national electronic invoicing system, RO e‑Factura, for B2G (Business-to-Government) transactions and expanding to generalised B2B (Business-to-Business) electronic invoicing in January 2024, with B2C (Business-to-Consumer) reporting following in January 2025.

This shift aligns Romania with EU-wide digital reporting standards, designed to provide authorities with real‑time transaction visibility while streamlining compliance for taxpayers.

While the transition may appear complex, with the right strategic support, compliance can be integrated seamlessly into your existing operational workflow.

When are you required to use RO e‑Factura?

e-Invoicing (mandatory for B2G & B2B)

All taxable persons established in Romania, regardless of VAT registration status, must transmit all B2G and B2B invoices through the RO e‑Factura platform, provided the place of supply is Romania.
In B2B transactions between Romanian-established taxpayers, the e‑Invoice is the only recognised document for tax and accounting purposes.

e-Reporting (for B2C & specific B2B)

For taxable persons not established in Romania but VAT‑registered here, B2B invoices having the place of supply in Romania must be reported via RO e‑Factura. The same reporting obligation applies to B2C transactions issued by suppliers established in Romania. In these specific cases, the traditional invoice remains the primary valid tax and accounting document, while the e‑Invoice serves solely for reporting purposes.

Certain operations fall outside the scope, including transactions with a place of supply outside Romania, supplies to persons neither established nor VAT‑registered in Romania, supplies outside VAT scope where no invoice is required, transactions eligible for simplified invoices, etc.

Deadlines & penalties: what businesses must watch

Invoices must be uploaded to the system within five working days of the issuance date. This applies to both e‑Invoicing and e‑Reporting.

Failure to comply carries significant penalties:

Non-submission: a fine of 15% of the invoice value.
Delayed submission penalties (capped at one per month):
- €1,000–€2,000 for large taxpayers.
- €500–€1,000 for medium taxpayers.
- €200–€500 for others.
Recipient risk: For B2B domestic transactions, beneficiaries who accept and record an invoice received in a form other than the official e‑Invoice may also be fined 15% of the invoice value.

These penalties highlight the importance of proper implementation and consistent compliance.

Technical framework: what businesses need to implement

Romania’s e‑Invoicing system is built in line with EU Directive 55/2014 and the EU standard SR EN 16931‑1. All e‑Invoices must be generated as XML files in UBL 2.1 or UN/CEFACT CII 16B formats.

Tools for implementation

Small taxpayers can utilise the government’s free app to generate compliant XML files.
High-volume businesses can integrate via API using technical documentation published by the Ministry of Finance.

The technical requirements are applicable in the same manner both for e-Invoicing and e-Reporting. Access to RO e‑Factura is granted exclusively via the SPV (Virtual Private Space) platform.

How can we help

Navigating Romania’s rapidly evolving digital reporting ecosystem can be challenging. Our specialised VAT and digital compliance consultants can support your organisation with: