RO e-Factura could bring over 7 billion euros to the state budget

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DocProcess estimates an 80% increase in demand for the implementation of electronic invoicing and compliance with an electronic invoicing system in the context of the national project RO e-Factura. The electronic invoicing system is operational in Romania starting with November 2021, being optional in the first stage and focused only on the Business to Government (B2G) relationship. In the coming months, the system will be extended to cover the Business to Business (B2B) relationship, the goal being to have a compulsory system starting with 2023.

“By implementing electronic invoicing, Romania is taking a major step in integrating digital technologies into companies’ activities and in the direction of aligning with European directives in this field. The elimination of paper invoices can significantly increase the VAT collection as well as bring additionally approximately 35 million euros per year to the Romanian public sector. In 2020 and 2021, we have seen a 25% increase in demand in this direction, with companies looking to outsource the e-invoicing service and adopt the new regulations in place,” stated Liviu Apolozan, President and VP Strategy at DocProcess.

In the latest report published by the European Commission in 2021 on the VAT gap in the European Union, Romania ranks last, with the highest VAT gap (34.9%) in 2019, up from 2018 (32.7%). This represents a loss of EUR 7.4 billion in uncollected VAT contributions. The implementation of an electronic invoicing system can help to significantly reduce this gap. Such a system will also help reduce companies’ costs and increase their profits. In addition, e-invoicing has an important sustainability component.

Photo credit: Illustration 74315678 / Commerce © Achmad Fahmi Rosyad | Dreamstime.com

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