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GEO 69, GEO 70, GEO 87 of 2024: News about RO e-Invoice, RO e-VAT, RO e-Transport, RO e-Electronic Cash Registers

July 1, 2024 comes with substantial changes in terms of taxpayers' reporting obligations in information systems of national strategic interest in the field of tax administration: RO e-Invoice, RO e-Transport, RO e-Electronic Cash Registers, RO e-VAT. A summary of these changes can be found in this edition of the Tax & Training newsletter.

1. Changes to RO e-Invoice applicable with July 1, 2024

According to GEO 120/2021, as amended by Law 296/2023, starting with July 1, 2024, in the B2B commercial relationship, between taxable persons established in Romania according to art. 266 para. (2) of the Tax Code, the issuer of the electronic invoice has the obligation to transmit it to the beneficiaries using the national system regarding the electronic invoice RO e-Invoice. Exceptions are referring to the simplified invoices issued according to art. 319 para. (12) of the Tax Code.

The deadline for submitting invoices in the national electronic invoice system RO e-Invoice, as regulated by GEO 115/2023, is 5 calendar days from the date of issuance of the invoice, but no later than 5 calendar days from the deadline for the issuance of the invoice provided in art. 319 para. (16) of the Tax Code (i.e. 15 of the month following the one in which the VAT chargeable event occurs). Failure to comply with this deadline is sanctioned, starting with June 1, 2024, with a fine ranging from RON 5,000 to RON 10,000, for legal entities classified in the category of large taxpayers, with a fine ranging from RON 2,500 to RON 5,000, for legal entities classified in the category of medium size taxpayers, and with a fine ranging from RON 1,000 to RON 2,500, for other legal entities,   as well as for individuals. By GEO 30/2024, it was established that the sanction for non-transmission of invoices in the national RO e-Invoice system is applied in the event that taxpayers do not report one or more invoices whose deadline for transmission in the national electronic system RO e-Invoice occurs during a calendar month. Failure to comply with the deadline for invoices whose deadline for transmission in the national electronic system RO e-Invoice occurs until May 31, 2024 inclusive is not sanctioned.

According to Law 296/2023, as of July 1, 2024, non-compliance by the issuer of the invoice – taxable person established in Romania according to art. 266 para. (2) of the Tax Code, in the B2B relationship, of the obligation to transmit it to the recipient using the national system on electronic invoicing RO e-Invoice, represents a contravention and is sanctioned with a fine equal to 15% of the total value of the invoice.

Also, from July 1, 2024, the receipt and registration by the recipient – a taxable person established in Romania according to art. 266 para. (2) of the Tax Code, of an invoice issued by economic operators established in Romania, in the B2B relationship, without being transmitted in the national system on electronic invoicing RO e-Invoice, represents a contravention and is sanctioned with a fine equal to 15% of the total value of the invoice.

In the event that the electronic invoice submitted complies with the structure provided by GEO 120/2021, the electronic seal of the Ministry of Finance shall be applied and shall be communicated immediately to the recipient. The application of the electronic seal of the Ministry of Finance certifies its receipt in the national system on electronic invoicing RO e-Invoice.  The original copy of the electronic invoice is considered the XML file accompanied by the electronic seal of the Ministry of Finance, which is made available to the issuer, respectively to the recipient, in the RO e-Invoice system, in the form of a zip archive file.

According to GEO 120/2021 as amended by Law 296/2023, the date of communication of the electronic invoice to the recipient is considered the date on which the electronic invoice is available to him for download from the national electronic invoice system RO e-Invoice. According to the Tax Code, from July 1, 2024, the use of the electronic invoice is subject to acceptance by the recipient, except for invoices that meet the conditions provided by GEO 120/2021.

Art. 10 para. (7) of GEO 120/2021

Art. 4 para. (7) of GEO 120/2021; Art. 8 of the Procedure for the use and operation of the national system on electronic invoicing RO e-Invoice, as well as for receiving and downloading the electronic invoice by the recipients of the electronic invoice issued in the B2G relationship in the national system on electronic invoicing RO e-Invoice, from 05.11.2021, approved by OMFP 1365/2021

Therefore, several aspects must be addressed starting with July 1, 2024:

  • The issuer of the invoice in the B2B relationship must send it via RO e-Invoice within 5 calendar days; failure to send invoices is liable to a fine equal to 15% of the total value of the invoice;
  • The recipient of the invoice in the B2B relationship must register in the books only invoices received through RO e-Invoice; receiving and registering invoices communicated in a way other than RO e-Invoice is a contravention punishable by a fine equal to 15% of the total value of the invoice;
  • The recipient of the invoice is considered to have received the invoice from the issuer on the date when the electronic invoice is available to him for download in RO e-Invoice, i.e. after the seal has been affixed by the Ministry of Finance. The procedure for registering in the books and for approving the payment of invoices must therefore be modified, so as to adapt to the new rules of communication of invoices;
  • If the recipient has objections to the invoices received through RO e-Invoice, he/she notifies the issuer of the electronic invoice, including in the national system on electronic invoicing RO e-Invoice, by writing a message to this effect.
  • If the commercial partners agree that the invoice has been issued wrongly, the correction of the electronic invoice communicated to the recipient in the RO e-Invoice system is made according to art. 330 of the Tax Code. The corrected electronic invoice is transmitted within the same national system regarding the electronic invoice RO e-Invoice.

2. Extension of the use of RO e-Invoice for transactions on the B2C relationship: optional from July 1st, 2024, mandatory from January 1st, 2025

GEO 69/2024, published in the Official Gazette 582 of June 21, 2024, extends the use of the national system on electronic invoicing RO e-Invoice.

Between July 1st, 2024 and December 31st, 2024, economic operators – taxable persons established in Romania according to art. 266 para. (2) of the Tax Code, regardless of whether or not they are registered for VAT purposes, for the supplies of goods and services that take place of delivery/provision in Romania made in the B2C relationship, they may submit the invoices issued in the national system on the electronic invoice RO e-Invoice. From January 1st, 2025, the transmission of these invoices through RO e-Invoice becomes mandatory. The deadline for transmitting these invoices is the same as the deadline for transmitting invoices in the B2B relationship (see above). However, since individuals do not have access to RO e-Invoice to receive the electronic invoice in this way, suppliers are obliged to send the issued invoices to the recipients according to the provisions of art. 319 of the Tax Code.

The B2C relationship is defined as the transaction having as object the execution of works, the delivery of goods/products and/or the provision of services between an economic operator – taxable person established in Romania according to art. 266 para. (2) of the Tax Code, and a non-taxable person, other than the relationship between an economic operator and contracting authorities, respectively contracting entities (B2G relationship) or in relation to public institutions, other than those carried out in the B2G relationship. Supplies of goods/services made to a natural person who identifies himself in relation to the supplier/provider by the personal identification number are considered to have been made in the B2C relationship.

3. Other situations of use of RO e-Invoice, regulated from July 1st, 2024

GEO 69/2024 also brings new clarifications regarding the use from July 1st, 2024 of the RO e-Invoice system for particular situations that were not expressly regulated by GEO 120/2021, as follows:

  • For the supplies of goods made within the operations of forced execution or of sale of movable and immovable property seized during the criminal trial, the obligation to send the invoice through RO e-Invoice is incumbent on the enforcement bodies, including the bailiffs and the National Agency for the Administration of Seized Assets, which issue invoices in the name and on behalf of the suppliers, taxable persons established in Romania according to art. 266 para. (2) of the Tax Code. The suppliers in whose name and on whose behalf invoices are issued have no obligations regarding the reporting in RO e-Invoice. The RO e-Invoice system will also send the issued invoices to the supplier. A new register will be established by ANAF: RO e-Invoice Register for Forced Executions.
  • It is clarified that invoices issued for operations that are not within the scope of VAT or for amounts that are not included in the VAT taxable base, for which there is no obligation to issue an invoice according to art. 319 of the Tax Code, are not reported in RO e-Invoice.
  • On the other hand, it is specified that self-invoices issued by taxable persons established in Romania according to art. 266 para. (2) of the Tax Code, based on the provisions of art. 319 para. (8) of the same normative act, are considered invoices issued in the B2B relationship, so they must be reported in RO e-Invoice.
  • The optional transmission of invoices in RO e-Invoice is regulated for:
  • supplies of goods and services in favour of diplomatic missions and consular offices, their staff, as well as foreign citizens with diplomatic or consular status in Romania or in another member state, under conditions of reciprocity;
  • supplies of goods and services to the European Community, the European Atomic Energy Community, the European Central Bank, the European Investment Bank or to the bodies to which the Protocol of 8 April 1965 on the Privileges and Immunities of the European Communities applies, within the limits and under the conditions laid down by that Protocol and the Implementing Agreements to that Protocol or by the Headquarters Agreements, to the extent that they do not lead to distortions of competition;
  • the supply of goods or services to the European Commission or to an agency or body established under European Union law, where the European Commission or such an agency or body procures those goods or services for the purpose of carrying out tasks conferred on it by European Union law to combat the COVID-19 pandemic, unless the goods and services purchased are used, either immediately or at a later date, for the purpose of subsequent supplies made for consideration by the European Commission or by such an agency or body;
  • supplies of goods and services in favour of international bodies, other than those mentioned above, recognised as such by the public authorities of Romania, as well as their members, within the limits and conditions established by the international conventions establishing these bodies or by the headquarters agreements;
  • the supply of goods not transported outside Romania and/or the provision of services carried out in Romania, intended either for use by the armed forces of other Member States or by the civilian personnel accompanying them, or for the supply of their canteens, when the respective armed forces participate in a defence action carried out in order to implement an activity of the European Union within the framework of the common security and defence policy;
  • the supply of goods and/or services to a Member State other than Romania, intended for the armed forces of any Member State other than the Member State of destination, for the purpose of use by those armed forces or by the civilian personnel accompanying them or for the supply of their canteens, when those armed forces participate in a defence action carried out in order to implement an activity of the European Union within the framework of the common security and defence policy;
  • supplies of goods not transported outside Romania and/or the provision of services made in Romania, intended either for the armed forces of the other NATO member states for use by the forces concerned or by the civilian personnel accompanying them, or for the supply of their canteens when the respective forces participate in a joint defence action;
  • supplies of goods and/or services to a Member State other than Romania, intended for the armed forces of a NATO Member State, other than the Member State of destination, for use by the forces concerned or by the civilian personnel accompanying them or for the supply of their canteens when those forces participate in a joint defence action; the supply of goods or services to the armed forces of the Kingdom Units stationed on the island of Cyprus pursuant to the Treaty establishing the Republic of Cyprus of 16 August 1960, which are intended for use by these forces or their accompanying civilian personnel or for the supply of canteens;
  • supplies of goods/services made by cultural institutes/centers of other states operating on the territory of Romania based on intergovernmental agreements, until July 1st, 2025.

In the event that these above-mentioned beneficiaries choose to submit invoices in the national RO e-Invoice system, they are obliged to be registered in the optional RO e-Invoice Register. Economic operators – taxable persons established in Romania according to art. 266 para. (2) of the Tax Code, who deliver goods/provide services to the above-mentioned beneficiaries, do not have the obligation to transmit the invoices issued to them through the national RO e-Invoice system, unless the beneficiaries have opted to use the system.

  • Associations and foundations established on the basis of GO 26/2000, other not-for-profit associations, political parties, cults, which are not registered for VAT purposes according to art. 316 of the Tax Code, do not have the obligation to use the national RO e-Invoice system for invoices issued between July 1, 2024 and June 30, 2025, but they may opt in to use the system, in which case they are obliged to be registered in Optional RO e-Invoice Register. Not-for-profit organizations that carry out economic activities have the obligation to apply for registration in the mandatory RO e-Invoice Register by July 1st, 2025, if they have not already opted for the application of the RO e-Invoice system, or, if they start carrying out economic activities after June 30, 2025, they have the obligation to apply for registration in the mandatory RO e-Invoice Register before starting the activities. Economic operators – taxable persons established in Romania according to art. 266 para. (2) of the Tax Code, which supply goods/provide services to the mentioned not-for-profit organizations, do not have the obligation to transmit the invoices issued to them through the national RO e-Invoice system, unless the beneficiaries are registered in the optional RO e-Invoice Register or, starting with July 1, 2025, in the mandatory RO e-Invoice Register.
  • Individual farmers who apply the Special VAT Regime for Farmers provided for in art. 3151 of the Tax Code, do not have the obligation to use the national RO e-Invoice system  for invoices issued between July 1, 2024 and June 30, 2025, but they may opt in for the use of the national RO e-Invoice system, in which case they are obliged to be registered in the optional RO e-Invoice Register. Farmers have the obligation to apply for registration in the mandatory RO e-Invoice Register by July 1, 2025, if they have not already opted for the application of the national RO e-Invoice system, and if they start carrying out economic activities after June 30, 2025, they have the obligation to apply for registration in the mandatory RO e-Invoice Register before starting to carry out economic activities. Economic operators – taxable persons established in Romania according to art. 266 para. (2) of the Tax Code, who supply goods/provide services to individual farmers who apply the Special VAT Regime for Farmers, do not have the obligation to transmit the invoices issued to them through the national RO e-Invoice system, unless the beneficiaries are registered in the optional RO e-Invoice Register or, starting with 1 July 2025, in the mandatory RO e-Invoice Register.
  • Economic operators – taxable persons not established, but registered for VAT purposes in Romania, who have opted for the use of the national RO e-Invoice system, are obliged to be registered in the Optional RO e-Invoice Register. This register automatically includes, after July 1, 2024, economic operators not established in Romania, who have opted to use the national system on electronic invoicing RO e-Invoice and have been registered in the RO e-Invoice Register by July 1, 2024.

Therefore, GEO 69/2024 introduces 3 new registers:

  • RO e-Invoice Register – Forced Executions – the information from this register will not be made public.
  • The optional RO e-Invoice Register, in which those persons who would have the right not to use the RO e-VAT system, but choose to do so until June 30, 2025 inclusive, are registered, until June 30, 2025 inclusive. The economic operator who has opted to use the national system regarding the electronic invoice RO e-Invoice is registered in the optional RO e-Invoice Register starting with the 1st of the month following the exercise of the option. From the moment of registration in the optional RO e-Invoice Register, the issuer also acquires the status of recipient. If the issuer of the electronic invoice has opted for the use of the national electronic invoice system RO e-Invoice, the use of the electronic invoice is considered accepted on the date of communication in this system.
  • The mandatory RO e-Invoice register, which will be organized starting with July 1, 2025, and in which the records from the optional RO e-Invoice will be automatically transferred, for those taxpayers who, after July 1, 2025, fall under the scope of the mandatory RO e-Invoice.

The procedure regarding the organization and registration within the mandatory RO e-Invoice Register is established by order of the President of the National Agency for Fiscal Administration. The optional RO e-Invoice Register and the mandatory RO e-Invoice Register are public and will be displayed on the website of the National Agency for Fiscal Administration.

4. Changes to the regime of fiscal electronic cash registers, in force as of June 21, 2024:

GEO 69/2024 also amends GEO 28/1999 on the obligation of economic operators to use electronic fiscal cash registers:

  • Additional elements are introduced in the mandatory content of the tax receipt: the unit of measurement, the tax identification code of the beneficiary, at his request, as well as the identification number of the receipt.
  • The date and time of issuance of the fiscal receipt, the identification number of the fiscal receipt, as well as the fiscal series of the fiscal electronic cash register will be printed on the fiscal receipt and in the form of a QR code. By exception, in the case of fiscal electronic cash register models for which, following testing at the National Institute for Research and Development in Informatics – ICI Bucharest, it is found that from a technical point of view it is not possible to print the date and time of issuance of the tax receipt, the identification number of the tax receipt, as well as the tax series of the fiscal electronic cash register in the form of a QR code, the users of these fiscal electronic cash registers have the obligation to comply with this obligation within a maximum of two years from the entry into force of GEO 69/2024.
  • The daily closing tax report issued by the electronic fiscal cash register must also contain the following data: the number of tax receipts that have the tax identification code of the beneficiary, their total value, the total related VAT, the identifier of the electronic journal, the number and value of discounts, cancellations, service amounts, as well as the resulting amounts for each means of payment used. The service amounts represent the amounts of money used for the payment of the rest to the customer, made available to the operator of the electronic fiscal cash register at the beginning of each working day. These are found in the balance of the petty cash and also in the balance at the end of the working day.

5. Pre-filled RO e-VAT return, for operations carried out starting with July 1st, 2024

GEO 70/2024 on some measures for the implementation and use of the pre-filled RO e-VAT return and the use of data and information through the implementation of a specific governance system, as well as other fiscal measures was published in Official Gazette 582 of June 21, 2024, just 2 days after the discussion of the draft normative act in the Social Dialogue Commission (19.06.2024),   and just 3 days after its publication in decisional transparency (18.06.2024).

GEO 87/2024, published in the Official Gazette 608/28.06.2024, amends some provisions of RO e-VAT, as they had been introduced by GEO 70/2024.

The pre-filled RO e-VAT return will be implemented on August 1, 2024 for operations carried out starting with July 1, 2024 by taxable persons registered for VAT purposes. The model and content of the pre-filled RO e-VAT return are to be approved by order of the President of the National Agency for Fiscal Administration within 10 days from the date of entry into force of GEO 70/2024, i.e. until July 1, 2024.

The pre-filled RO e-VAT return contains data and information regarding the economic operations declared by the taxable persons and transmitted to the follosing systems of the Ministry of Finance and the National Agency for Fiscal Administration, respectively:

  • The national system regarding the electronic invoice RO e-Invoice, provided for in art. 3 para. (2) of GEO 120/2021
  • The national RO e-Transport system, provided for in art. 3 of GEO 41/2022
  • The national RO e-Seal system, representing the electronic seal of goods, provided for in art. LVII of Law no. 296/2023
  • The national information system RO e-SAF-T, representing the standard tax control file, regulated by art. 591 of the Tax Procedure Code
  • The national information system RO e-Electronic Cash Registers, representing the National Register of Electronic Fiscal Cash Registers installed in the counties and in the sectors of the municipality of Bucharest, provided for in art. 31 of GEO 28/1999
  • Integrated customs information system
  • other information systems of the Ministry of Finance.

The pre-filled RO e-VAT return contains information on the data sources used for pre-completion. In the event that no data and information are identified for the pre-filling of all the fields of the pre-filled RO e-VAT return or they result from operations for which there is no obligation to submit information to ANAF, these fields remain blank.

The flow of the VAT return will change, starting with the fiscal period July 2024 or the third quarter of 2024, as described by GEO 116/2023, GEO 70/2024 and amended by GEO 87/2024 (Official Gazette 608 of 28.06.2024), as follows:

  • The pre-filled RO e-VAT return is sent, for each reporting fiscal period, to taxable persons registered for VAT purposes, by electronic means, until the 5th of each month following the end of the fiscal period. If the RO e-VAT National Information System does not work for technical reasons, the term is extended accordingly by the duration of time in which it does not work at the technical and quality parameters that ensure its continuous operation, interruptions which must be duly announced on the ANAF website.
  • After receiving the pre-filled RO e-VAT return, the taxable persons registered for VAT purposes verify the pre-filled data and information in accordance with the taxable operations carried out and the tax state of affairs, sign and submit the VAT return.
  • In the event that, after submitting the VAT return by the taxable persons registered for VAT purposes, significant differences are identified between the pre-filled values by means of the pre-filled RO e-VAT return and the values filled by the taxable person registered for VAT purposes through the VAT return, ANAF notifies the taxable person by electronic means. Significant differences are understood to be the values that exceed the materiality threshold that meets the cumulative conditions of at least 20% in percentage and an absolute value of at least RON 5,000, resulting from the comparison of the values entered in the rows of the VAAT return submitted by the taxable person with those corresponding to the rows of the pre-filled RO e-VAT return. The identification of significant differences is made based on the amounts entered in the “VAT” column of the return submitted by the taxable person and the pre-filled statement. In the situation where there is no obligation to fill in the VAT column in the VAT return, the verifications are carried out by comparing the amounts entered in the “Base” column. These provisions do not apply to the correction rows in the VAT return.
  • After identifying the significant differences, the form “Notification for compliance RO e-VAT is transmitted by electronic means, until the 5th of the month following the legal deadline for submitting the VAT return. The model of the form is approved by order issued by the President of the National Agency for Fiscal Administration within 10 days from the date of entry into force of GEO 70/2024, i.e. until July 1, 2024. The notification can also be submitted for differences below the materiality threshold, based on the risk analysis. The “RO e-VAT compliance notification” derogates from the provisions of the Tax Procedure Code on how to manage compliance notifications.
  • The taxable person registered for VAT purposes has the obligation to transmit, by electronic means, the result of the verifications carried out on the differences communicated by the “Notification of compliance RO e-VAT”, in response to it, within 20 days from the date of receipt of the notification. ANAF will analyze the taxable person’s response to the “RO e-VAT Compliance Notification” and it will instruct the legal measures in accordance with the powers assigned and the objectives of GEO 70/2024. Failure to transmit the result of the verifications or failure to comply with the deadline for transmission is considered contravention and is sanctioned with a fine ranging from 5,000 lei to 10,000 lei, for legal entities classified in the category of large taxpayers, defined according to the law, with a fine ranging from 2,500 lei to 5,000 lei, for legal entities classified in the category of medium size taxpayers, defined according to the law, and with a fine ranging from 1,000 lei to 2,500 lei, for other legal persons, as well as for natural persons. The provisions of the Prevention Law no. 270/2017 are applicable.

The “Notification of compliance RO e-VAT ” does not apply:

  • in the case of material errors;
  • in the situation where there is not enough information in the databases of the tax authority for certain lines of the pre-filled e-VAT return or this information in the databases is not correlated;
  • other situations provided for by order of the Minister of Finance.

The pre-filled RO e-VAT return is not binding within the meaning of the Fiscal Procedure Code, i.e. ANAF cannot initiate the forced execution of the unpaid amounts resulting from this pre-filled statement.

However, the existence of significant differences that will not be explained will attract:

  • fines
  • increased tax risk (i.e. increased possibility of a VAT control),
  • increasing the risk of a perceived undue VAT refund claim, for VAT returns with amounts to be refunded and VAT refund option (i.e. higher chances of refund with subsequent control).

According to GEO 87/2024, until January 1, 2025, the RO e-VAT Compliance Notification is not taken into account by ANAF when establishing the fiscal risk indicators.

The transmission flow of the RO e-VAT Compliance Notification and the response to this notification regarding the results of the analysis of the differences enters into force for all taxpayers on January 1, 2025.

In the case of taxable persons who apply the VAT cash accounting system, the flow referring to the pre-filled RO e-VAT return applies starting with August 1, 2025.

In order to manage and operationalize the pre-filled RO e-VAT return, taxable persons registered for VAT purposes have the following obligations:

  • to verify the data and information in the pre-filled RO e-VAT return sent by electronic means;
  • to respond to the RO e-VAT Compliance Notification;
  • to notify any technical errors resulting from the implementation of the pre-filled RO e-VAT return.

The operationalization of RO e-VAT will entail in the following steps:

  • elaboration of the business analysis for the implementation, operationalization and management of the pre-filled RO e-VAT return
  • development, testing, putting into production of the pre-filled RO e-VAT return for operationalization by August 1, 2024
  • Possibly, the modification of the legal deadlines for submitting tax returns 390 (recapitulative statement on intra-community supplies/acquisitions/services) and 394 (informative statement on supplies/services and acquisitions made on the national territory), in order to allow the information from these declarations to be taken over in the pre-filled RO e-VAT Return
  • finally, the operationalization of the pre-filled RO e-VAT return.

In this regard, in order to monitor the operationalization of RO e-VAT, the National Committee for the RO e-VAT Pre-Filled Return is established, consisting of representatives of MF, CNIF, ANAF, AVR, STS, other public or private law entities, as guests.

The Ministry of Finance and the Special Telecommunications Service are to issue a joint order, which is published in the Official Gazette of Romania, Part I, which establishes the use of data and information for the operation of the National Information System RO e-VAT. We assume that it is that logical tree of correlations between the data reported by the taxpayer and his business partners through other declarations, and the rows / columns of the VAT return, which taxpayers could then use to build a dashboard with which to follow the same correlations for a high degree of VAT compliance, respectively as a tool and reference standard for explaining the differences.

Taxable persons can electronically request reports on the data and information from the data sources used by ANAF for the pre-filled statement.

The publicly expressed concerns related to RO e-VAT refer to:

  • Very limited public consultation (publication in the Official Gazette within 3 days of publication for public debate)
  • The introduction of an additional return, the non-reduction of the already existing ones (which was hoped as a result of SAF-T reporting), the very likely advancement of the deadline for filing D390 and D394, which increases the burden of tax compliance and reduces the time required in this regard.
  • Implementation before and without ANAF having all the necessary data to fill in the returns 100% correctly (e.g. SAF-T reporting for small taxpayers only from 2025; in this regard, we welcome the decision to postpone the mechanism of the RO e-VAT Compliance Notification for January 1, 2025 for all taxpayers, respectively for August 1, 2025 for those who apply the VAT cash accounting system).
  • Very fast implementation, for all taxpayers at the same time, without taking into account the ability to adapt the systems and the additional pressure created by this new declaration for small and medium-sized taxpayers (from this point of view, we welcome the change regarding the implementation without the obligation to justify differences until 31.12.2024, and the application only from August 2025 for taxpayers who apply VAT cash accounting system).
  • The very high pressure put by the Notifications for compliance on RO e-VAT, even when the taxpayer reports lower deducted amounts (thus, we welcome the relaxation of the deadlines by GEO 87/2024, compared to the deadlines introduced by GEO 70/2024). However, such deadlines for justifying differences will put pressure on finance departments or bookkeeping/tax compliance service providers.
  • The short implementation deadline, which does not allow the adaptation of the work processes of the financial departments or of the bookkeeping/tax compliance service providers, has been criticized, and we welcome the postponement of the mechanism for justifying differences and sanctioning, as we have presented above.
  • Shifting the burden of investigating the differences from ANAF to the taxpayer, even if these differences are generated, most of the time, by incomplete information in the hands of the authorities, not by erroneous declaration. In this regard, GEO 87/2024 promises that RO e-VAT Compliance Notifications will not be issued if certain lines of the statement cannot be pre-filled correctly due to the lack or insufficiency of information at ANAF.
  • The lack of the logical tree (i.e. the correlations between the information declared by other declarations and the pre-filled statement) – which, although it has been discussed with various professional organizations, is not yet published by the Ministry of Finance/ANAF. Basically, we do not know at this moment how ANAF will pre-fill the VAT returns and how ANAF will determine the differences, and we cannot prepare the dashboard for tracking these correlations.

6. News on RO e-Transport from 1 July 2024

We remind you that on July 1, 2024, the grace period for the application of sanctions for non-reporting of international transports of goods in the RO e-Transport system expires, as regulated by GEO 115/2023 and modified by GEO 43/2024.

Failure to comply with the obligation to generate the ITU code for international transports or the declaration in the RO e-Transport System of quantities different from those subject to the transport of goods is sanctioned with a fine, and with the complementary measure of confiscation of the value of the transported and undeclared goods.

However, GEO 43/2024 brings as a novelty the fact that the complementary sanction of confiscation does not apply to the findings resulting from verifications subsequent to the conclusion of the road transport of goods, when they have been recorded in the justifying documents that are the basis of the entry records in the books, as well as in the users’ accounts, as the case may be, during the period to which the respective operations refer.

By Order no. 1.337/1.268/2024 for the approval of the Procedure for the use and operation of the national system for monitoring the transport of goods RO e-Transport, published in Official Gazette 597 of June 27, 2024, the new procedure for the application of the RO e-Transport system to national transports of goods with high fiscal risk and to international transports of goods was approved. The new procedure for using the RO e-Transport system includes, among others:

  • Limitation of the obligation to use the system for international transport of goods only for road transport with vehicles that have a maximum technically permissible mass of at least 2.5 tons, loaded with goods with a total gross mass of more than 500 kg, or a total value of more than 10,000 lei, related to at least one consignment of goods that is subject to transport.
  • Instructions on determining the value of undeclared goods to be confiscated, in case a shipment is not properly declared in the system or situations in which the goods subject to RO e-Transport reporting are undervalued.

According to GEO 87/2024, published in Official Gazette 608/208.06.2024, by exception, international transport of goods, the application of sanctions for non-use of the RO e-Transport system enters into force on January 1, 2025 and applies to the facts committed and ascertained starting with this date for the economic agents obliged to obtain the ITU code which have the status of authorized economic operator (EOA) on the date of international transport of goods, according to the provisions of Article 38 of Regulation (EU) No. 952/2013 establishing the Union Customs Code.

News about Tax & Training

As usual, we like to keep you up to date with our latest projects.

On June 19, we participated in the event “Taxation Forum for the Financial Services Industry”, organized by the Romanian Banking Institute, where we presented the main tax implications of employee global mobility, a topic that we have discussed it extensively in several editions of the non-resident taxation course organized for the financial services industry, together with IBR.

On June 26, 2024, just a few days after the publication in the Official Gazette of GEO 69 and GEO 70/2024, we delivered a webinar, together with Pluxee and CNIPMMR – Bucharest-Ilfov Employers’ Association, in which we discussed the major tax challenges for SMEs in 2024, namely the changes to the microenterprise regime, the transition to tax on profit regime, respectively about challenges in labor costs and the big challenge:   digitalization and compliance obligations with RO e-Invoice, RO e-Transport, RO e-VAT. You can watch the recording of the webinar on the IMM Connect platform or directly on the Tax & Training website: immconnect.clients.pluxee.ro/hubfs/immc/webinars/Nadia-Oanea-Felix-Caprariu-Provocari-Fiscale-2024-final.mp4.

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This information does not constitute tax or accounting advice. Nadia Oanea or Tax & Training SRL does not assume responsibility for the application of the tax provisions for the particular cases of each taxpayer. This information is not provided with the intention of helping to avoid or illegally reduce taxes, duties or accessories that may be imposed by the authorities.

For personalized tax advice or to request a training offer, you can contact us by email at nadia.oanea@taxandtraining.com

www.taxandtraining.com
Tax & Training SRL București România

Nadia Oanea | CCFR, CECCAR, ADIT

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GEO 115/2023, GD 1336/2023 – what new tax rules apply in 2024?

GEO 115/2023, GD 1336/2023 – what new tax rules apply in 2024? The Fiscal Code was amended starting with 01.01.2024, through several normative acts: Law 309/2022 (provisions on taxation of private, optional and occupational pensions) Law 282/2023 (provisions on taxation of contributory and non-contributory pensions) Law 296/2023 (measures regarding the

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