In commercial relations, the flow of documents is important because it certifies the company's activity and justifies it before the control authorities, but also because it helps to resolve disputes that may arise in the case of a collaboration. In addition to the contract, which is arguably the most powerful document, the hierarchy brings invoices to the fore. Currently, digitized invoices are increasingly used, which circulate without signature and stamp according to Article V, para. 2 of Ordinance no. 17/2015 and art. 319 paragraph 29 of Law no. 227/ 2015 regarding the Fiscal Code, which are available in the online invoicing programs.
What is invoice, digital invoice and e-invoice?
Invoices are fiscal documents that form the basis of transactional actions, based on which payments for services or products are requested. In recent years, invoices could circulate in parallel, both digital and physical, in any business segment. With digitization, however, more and more companies have made the transition to the digital invoice (in PDF format) exclusively, which offers a multitude of advantages, such as ease of document management, payments and receipts, but also easy access to fiscal data of both entrepreneurs and the accounting part of the system.
The digital invoice is a fiscal document requesting payment for a product or service, which can be issued through an invoicing program. According to the Fiscal Code, art. 314, paragraph 4, the electronic invoice presents the same identification elements as a physical invoice, the emphasis being on: authenticity, identification data of the parties, service data and payment terms.
Beyond the digital invoice we currently use, the e-invoice is distinct. The document was designed to facilitate the invoicing of commercial services for EU member states, without requiring any other actions or changes at the software level. The electronic invoice is an exclusively electronic fiscal document, and soon the use of the electronic invoice will become mandatory in Romania as well.
What is B2G and how does electronic invoice work?
B2G is the acronym for Business to Government and refers to the exchange of goods and services between legal entities and public institutions or state institutions. Thus, between these entities, the electronic invoice with a standard format, the European standardized format, will become mandatory, according to Law no. 199/ 2020 and additions from GEO 120/2021. Invoicing will be done through the E-invoice system, and the requirements require compliance with European technical requirements and standards and the SR EN 16931-1 standard.
The e-invoice initially started as a pilot project, and will become mandatory starting from January 1, 2024 for all transactions between all types of companies (currently it is only mandatory in the case of collaboration between legal entities and state institutions).
What are the main elements of an electronic invoice?
The generalized E-invoice system has established several main elements that authenticate the document and make it easy to identify:
- Invoice indicators (number, date)
- Buyer information
- Information about the seller/provider
- Information about products or services offered
- Cost information
- Payment Information
- Invoiced totals
- VAT rate
- Other necessary specifications (beneficiaries, legal representatives, etc.)
How is the electronic invoice sent?
The person who submits the electronic invoice bears the name of the issuer, and the issuer should have an SPV account, i.e. in the Private Virtual Space and a digital certificate enrolled in the platform. The person who receives the invoice is called the beneficiary (contracting authority or contracting entity) and must have the technical means to receive the document safely, respecting the rules of security and data processing in electronic format. Also, an important aspect is that the beneficiary is registered with the MFP - Ministry of Public Finance.
The electronic invoice is one of the measures taken by the Government as part of the plan for financial recovery and reduction of tax evasion. Practically, with the help of the electronic invoice, the transmission of documents will be made safer and easier, digitization being in fact the trajectory towards which modern taxation is heading. That's why companies should prepare for the implementation of IT requirements, because the deadline for applying the measures is January 1, 2024.
To facilitate this process, we recommend Datecs equipment BC-50, an all-in-one device, which not only transforms the cash register into a bank POS, but is also one of the most modern fiscal devices that can transmit data on the spot – print the payment note, tax slip, bank receipt after making the payment with the card and can send the invoice to the customer's email immediately.