European Council Approves Proposal Authorizing Romania Deviation From EU VAT Directive to Require E-Invoicing

The Council of the European Union June 23 issued EU Council Decision No. COM(2023) 329, approving the European Commission (EC) proposal authorizing a deviation for Romania from EU Directive 2006/112/EC on the common system of VAT, to permit mandatory e-invoicing. Romania sought the measure for anti-avoidance reasons and to improve tax administration. The decision includes measures: 1) specifying that Romania may only accept VAT invoices issued by taxable persons established in Romania if issued electronically; 2) specifying that the use of electronic invoices issued by taxable persons established in Romania isn’t subject to acceptance by recipients established in Romania; and ...