The status of e-invoicing: close-up on Poland and Romania

For over a decade, though, e-invoicing was an obligation for B2G (Business to Government) transactions only – until Italy set a new standard. Electronic invoicing has been mandatory there since in 2019, for B2B as well as for B2C transactions.

More than preventing tax fraud, digital invoices simplify and smoothen the invoicing process, boosting efficiency and reducing errors, cost and paper. The Italian success story has inspired many other EU countries to kick off their journeys towards B2B e-invoicing.

Promoting e-invoices to combat fraud

In December 2022 the European Commission published the ViDA (VAT in Digital Age) proposal, aimed at modernizing the VAT system to prevent fraud. One of the key measures is the move to real-time digital reporting based on e-invoicing for businesses that operate cross-border in the EU. The proposal is now spurring the transition towards digital invoices in all European member states.

B2B e-invoicing in Romania: what you need to know 

Since 1 July 2022, e-invoices have been mandatory for B2G transactions in Romania. In addition, the authorities also obliged B2B e-invoicing for the car trading industry and for products with high financial risk: fruit and vegetables, alcohol, new construction material, mineral products, clothing and footwear. 1 January 2024 – marks the next step in Romania’s e-invoicing journey.

• Deadline: 1 January 2024, with a grace period of 3 months (1 January - 31 March 2024). 
• E-invoice platform: When issuer and receiver of the invoices are registered on the RO e-Factura platform, they can send and receive e-invoices.
• E- invoice format: Invoices must be generated in a predefined XML format in accordance with the RO_CIUS standard: UBL 2.1. 
• Sanctions for non-compliance: Regarding the issuance of invoices, at the end of the grace period (starting from 1 April 2024), fines of up to EUR 2,000 can be issued to tax payers wo fail to fulfil their obligation.

B2B e-invoicing in Poland: what you need to know 

Poland has always been a frontrunner when it comes to e-invoicing. All Polish public services have been using the e-invoicing format since 2019. Since January 2022, taxpayers can voluntarily send structured e-invoices. On 1 July 2024 B2B e-invoicing will become mandatory for all VAT-registered Polish entities and Polish branches of foreign entities.

• Deadline: 1 July 2024 or 1 January 2025 for VAT-exempt SMEs.
• E-invoice platform: PeF (Platformy Elektronicznego Fakturowania) has been the central platform for B2G e-invoicing since 2019. It will gradually be replaced by the National e-invoicing system (KSeF), which is also the standard for B2B invoices.
• E- invoice format: Invoices must be generated in a predefined XML format: KSeF XML Schema (unlike for B2G requirements, where the standard was Peppol BIS Billing 3.0).
• Sanctions for non-compliance: Sanctions of up to 100% of the amount of output VAT or 18.7% of the gross amount of the invoice, as of 1 January 2025.  

Are you ready for the changes?

If you’re doing business in or with Poland or Romania, what does this upcoming e-invoicing obligation mean? Do your need to change your invoicing process? 

If you’re an SAP user, the answer is: not really. SAP has a dedicated solution to take care of the e-invoicing complexities. SAP Document and Reporting Compliance (DRC) guarantees coverage in 58 countries, including support for the Polish KSeF, the Romanian RO e-Factura platform and the widespread PEPPOL network. So, whichever document you need to exchange with the Polish or Romanian authorities or business partners, SAP DRC will make sure you use the right format, in the right platform.

How delaware can help

Zooming out of the upcoming regulations in Poland and Romania, 2024 is a milestone year for e-invoicing, as many other European countries – France, Germany, Spain, Sweden, etc., –are preparing the transition too. And that’s great news: the more digital invoicing gets infused throughout Europe, the easier cross-border financial processes will become and the more time and money you will save, as a company.

Bottom-line: if you haven’t done so, it’s time to step up your invoicing game – and that needn’t be a challenge. As a recommended implementation partner for SAP DRC, we can help you successfully integrate SAP DRC with your existing SAP setup – so that you’re all set to reap the benefits of e-invoicing with your business partners.