Fiscal changes effective January 1, 2024: An entrepreneur can own only one microenterprise, and RO e-Invoice becomes mandatory for 1.2 mln companies
From January 1, 2024, all companies in Romania must enroll in the RO e-Invoice system, an entrepreneur cannot own multiple microenterprises, VAT increases from 9% to 19% for access to festivals, and taxation for meal vouchers doubles,…
- From January 1, 2024, all companies in Romania must enroll in the RO e-Invoice system, an entrepreneur cannot own multiple microenterprises, VAT increases from 9% to 19% for access to festivals, and taxation for meal vouchers doubles, according to an analysis by Crowe Romania, a tax, audit, and accounting consultancy firm.
- Mitel Spătaru, Crowe Romania: "Business leaders' decisions varied: from eliminating some employee benefits and replacing them with more advantageous ones to price increases. For microenterprises, decisions are harder to make, reflected in the statistics on enrollment in the RO e-Invoice system, with only 11% of the total 1.2 million companies in Romania enrolled so far. New investments are the first to suffer from such a flurry of tax changes, and the result of the lack of predictability will be seen in the 2024 company balance sheets."
Fiscal amendments made in October and December 2023 led to tax increases and required new investments by companies, while the unpredictability regarding the fiscal regime has disturbed the business environment at the end of the year. Changes at the microenterprise level and the elimination of tax optimization for entrepreneurs holding stakes in multiple microenterprises, doubling taxation for meal vouchers offered to employees, increasing VAT from 9 to 19% for certain tourism activities (including festival access), and mandatory enrollment in the RO e-Invoice system are just some of the changes that companies are still trying to process and implement, according to an analysis by Crowe Romania.
"2024 brings significant tax changes in all sectors, and managers and entrepreneurs have had to work with multiple business scenarios in the last two months. Business leaders' decisions varied: from eliminating some employee benefits and replacing them with more advantageous ones to price increases aimed at covering tax hikes or finding solutions for new investments needed for digitalizing the relationship with authorities. For microenterprises, the situation is more difficult, and decisions are harder to make, which is also reflected in the statistics regarding enrollment in the RO e-Invoice system, with only 11% of the total 1.2 million companies in Romania enrolled so far. New investments are the first to suffer from such a flurry of tax changes, and the result of the lack of predictability will be seen in the 2024 company balance sheets," explained Mitel Spătaru, Tax Partner at Crowe Romania.
Crowe Romania compiled a list of the most important fiscal changes impacting the business environment, effective from January 1, 2024, regulated by two normative acts published in the Official Gazette in October and December 2023:
1. A shareholder/associate can hold over 25% of the shares/social parts only in one microenterprise. Until now, the limit was holding over 25% of shares/social parts in 3 microenterprises. If an entrepreneur holds over 25% shares/social parts in multiple microenterprises in 2024, they must decide by March 31 which company will apply the microenterprise-specific tax system.
