How to Invoice Romanian Clients: A Guide to Valid Invoices

Getting paid on time starts with sending a correct invoice. In Romania, invoices must meet specific legal requirements to be considered valid for accounting and tax purposes. Whether you are a freelancer, a small business, or a larger company, understanding these rules will help you avoid delays and potential fines.

Mandatory Invoice Elements

Romanian fiscal law requires every invoice to contain a set of standard fields. Missing any of these can make the invoice invalid and may delay payment or cause issues during a tax audit. The key elements are:

• Series and number – a unique sequential identifier for the invoice.
• Issue date – the date the invoice is created.
• Due date – the date by which payment should be made.
• Supplier details – full legal name, address, and fiscal identification code (CUI for companies, CNP for individuals).
• Client details – the same information for the buyer.
• Description of goods or services – clear and specific details of what is being billed.
• Quantity and unit price – for goods, the number of units and price per unit excluding VAT.
• VAT rate and amount – the applicable VAT rate and the total VAT charged.
• Total amount – the final sum due, including VAT.

Invoices can be issued in any language, but Romanian tax authorities may request a certified translation during an inspection. It is often practical to issue invoices in Romanian or bilingual format to avoid this step.

VAT on Invoices

Value Added Tax (VAT) is a crucial part of Romanian invoicing. Businesses must apply the correct VAT rate depending on the goods or services provided. Romania uses a standard rate and reduced rates for certain items such as food, books, and medicines. Ensure you know which rate applies to your products or services.

If your business is not VAT-registered, your invoice should state that VAT is not applicable, often with the phrase “neimpozabil” or “scutit de TVA”. Once your turnover exceeds the registration threshold, you must register for VAT and start charging it. Keep track of your registration status to remain compliant.

Electronic Invoicing

Romania has been moving towards mandatory electronic invoicing for business-to-business (B2B) transactions. The national e-invoicing system, known as e-Factura, requires suppliers to submit invoices electronically for certain transactions. While the rollout has been phased, many businesses now need to use e-invoicing for all B2B sales. It is essential to check the current requirements for your situation, as rules may change.

For business-to-consumer (B2C) sales, paper or PDF invoices are still common, but electronic options are increasingly accepted.

Payment Terms and Late Payment

Your invoice should clearly state the payment terms, such as “net 30” or a specific due date. Romanian law provides for statutory interest on late payments between businesses, so you can include a reminder about this on your invoice. However, it is good practice to agree on payment terms in advance with your client to avoid misunderstandings.

Keep accurate records of all issued invoices, whether paper or electronic. Romanian law requires businesses to retain invoices for a minimum of five years, and longer for certain documents. Proper record-keeping will make tax filing and audits much smoother.