- The European Commission has proposed granting Romania’s request for derogation from the EU VAT Directive to mandate e-Invoicing, which aims to combat tax fraud and improve tax collection efficiency while reducing administrative costs.
- Romania historically has one of the highest VAT Gaps in the EU and is seeking urgent action, of which e-Invoicing will be a component.
- The existing “RO eInvoicing” system, which came into effect in November 2021, is expected to become the basis for the new mandatory e-Invoicing system.
- The proposed system already uses an invoice format compatible with the European Norm e-Invoicing standard (EN16931), but Romania intends to adapt the system by 2026 to comply with ViDA proposal.
- While the derogation is not a formality, it seems highly likely that Romania will be allowed to proceed.
Source Opentext
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