If optional until now, the eFactura system becomes mandatory from July 1, 2022, for all companies that sell products that are considered by authorities to pose a high risk of tax evasion. Such products are: vegetables and fruits, alcoholic beverages, new construction, mineral products (natural mineral water, sand and gravel) clothing, and footwear. For companies with a slightly higher volume of transactions, it is necessary to automate the verification and export process, which functionality is provided by the SAP Business One ERP system and implemented by System Innovation Romania for all customers who adhere to the system starting July 1.
The eFactura (RO eFactura) system is already operational for public institutions and allows real-time cost monitoring, analysis, and comparison for public procurement. The system was initiated in 2022 by ANAF and the Ministry of Finance with the stated goal of increasing the efficiency of VAT collection, following a technical and legislative model already developed by Italy. In the long run, the eFactura system will be generalized as an electronic invoicing system for the entire Romanian business environment. Therefore, even if you do not fall into any of the categories for which the eFactura system becomes mandatory in July, expect to enroll in the near future. According to official information, it will most likely become the exclusive tool for billing as of 2023.
What exactly does eFactura do?
The eFactura system aims to take electronic invoices in XML format directly from issuers and send them to beneficiaries (private companies or public institutions). The system will automatically validate the XML syntax as well as comply with the national Core Invoice Usage Specification (CIUS). The system will also ensure the authentication of the parties with the help of digital certificates specific to the access to the ANAF Virtual Public Space (SPV). After validating/invalidating the invoice, the system will inform the sender about the acceptance of the document and will inform the recipient about the existence of the invoice. The system does not communicate in real time but provides information based on queries, following the current model of the ANAF SPV. Theoretically, the eFactura system allows the beneficiary to confirm the receipt of the invoice, but it is not intended to replace the current ways of informing and sending tax documents. Or, at least not yet. Also in the long run, the eFactura system is to be integrated with similar systems in other European countries (being already operational in Hungary, Poland, and Italy).
Both companies operating an invoice (issuer and consignee) must be registered in the national electronic invoice system. This national register is public, and the data set includes the name of the economic operator, the address of the tax residence, the Sole Registration Code / VAT registration code, the date of registration in the system. One of the most obvious challenges of switching to the eFactura system will probably be the observance of the data structure. In most cases, the records that companies have for billing are incomplete (do not contain all the data, for instance the postal code) or do not comply with the standard structure (type of street/artery).
The switch to eFactura for SAP Business One users
Preparing invoices according to eFactura requirements and uploading them to the system can be done automatically with the help of financial accounting management applications, such as SAP Business One. If the volume of transactions is high, manual upload is out of the question. To automate this process, the ERP system needs to be prepared. The issuance of invoices in SAP Business One will follow the same logic, only that they must comply with a format specific to the European electronic invoicing standard SR EN 16931-1 and have an associated XML file. All identification data mentioned in the invoices: company names, addresses, postal codes must be correctly formatted, according to the requirements specified in the ANAF documentation. Ensuring such compliance will be a challenge for most companies.
For customers who adhere to eFactura starting July 1, we’ve updated the specific fields in SAP Business One and implemented a procedure that generates invoices in the appropriate format. After a series of tests, the transition should be easy and hassle-free although there is always a dose of surprise in projects alike. The export procedure will be operational for all companies in due time, depending on the schedule of enrollment in the system. Companies must register in the register “RO eFactura” and have a valid digital signature.
What are the benefits of the system?
For companies, switching to eFactura seems like a complicated process, with no immediate benefit. On the other hand, the Ministry of Public Finance considers that:
- It provides a real-time overview of budget execution and, in the next phase, of B2B transactions;
- It contributes significantly to reducing VAT fraud at the national and EU levels;
- The system will be interconnected with other systems owned by EU Member States;
- It gives the possibility to entities in any Member State of the European Union to participate in the public procurement process;
- It will bring efficiency, predictability, and transparency regarding the money spent by public institutions;
- It will contribute to the development of the document verification mechanism (desk – audit – ANAF control – remote anti-fraud) for compliance and prevention actions;
- The data collected through this system will ensure support for more detailed predictive analyzes of economic developments, the identification of asymmetries in the economy and the implementation of relevant fiscal policies to ensure a natural framework for business development;
- Eliminates vulnerabilities in the old paper billing system.
For any information regarding the use of SAP Business One and the transition to the eFactura system, contact us on any communication channel at hand.