Mandatory electronic invoicing/contribution changes for electrical equipment | TaxFlash 87

• Mandatory electronic invoicing starting January 1, 2024

On June 23, 2023, the European Commission (EC) published the Proposal according to which it grants Romania a derogation in order to apply electronic invoicing for all types of transactions between taxable persons established in Romania, starting from January 1, 2024. The use of the RO e-Invoice system will be optional for non-established economic operators, who only have a VAT registration code in Romania.

Currently the system is only mandatory for certain transactions in the B2B (high fiscal risk products) and B2G relationship.

In January 2022, Romania requested a derogation from articles 218 and 232 of the VAT Directive, so that the RO e-invoice system becomes mandatory for all companies in the B2B relationship. Following this, the EC published the draft decision that would be applicable from January 1, 2024. According to the proposal, this measure aims to combat fraud and tax evasion in the field of value added tax (VAT).

The decision is to be approved in the next period, so starting on January 1, 2024, taxable persons established in Romania will only issue electronic invoices (RO e-invoice) to each other.

We recommend companies established in Romania to take the necessary measures to implement the e-Invoice system starting from January 1, 2024.

 

• The contribution for electrical and electronic equipment is changed

On June 20, 2023, Law no. 175/2023 regarding the approval of the GEO no. 125/2022 for the amendment and completion of GEO no. 196/2005 on the Environmental Fund was published in the Official Gazette and entered into force from June 23, 2023. Among the main changes, we mention the change in the contribution for electrical and electronic equipment, as follows:

• Contribution for Categories 1-2, 4-6 from annex no. 2 to GEO no. 5/2015, with subsequent amendments and additions, decreases from 4 lei/kg to 2 lei/kg.
• Contribution for Category 3 from annex no. 2 to GEO no. 5/2015, with subsequent amendments and additions (lamps) decreases from 8 lei/kg to 4 lei/kg.

The new contribution level is applicable for products introduced on the national market after 23.06.2023.