The Romanian National Tax Administration and the Ministry of Finance, through Government Ordinance 41/2022, implemented the electronic transport system (RO e-Transport). It aims to modernize and streamline the transportation of high tax risk goods across Romania.
The RO e-Transport system was initially planned to become mandatory on July 1, 2022, but was postponed until October 1, 2022. The Ministry then postponed it again to January 1, 2023, to allow time to implement necessary technical and administrative measures.
High fiscal risk goods can include but are not limited to alcoholic beverages, fruits, fuel, vegetables, nuts, and mineral products.
All parties involved with these goods must register in the RO-e Transport system and have their vehicles fitted with the necessary tracking device.
The RO e-Transport system is intended for Romania's suppliers, warehouse keepers, consignees, and beneficiaries.
It will allow for real-time monitoring of the transport process and make it easier to detect any wrongdoings. It will also help reduce paperwork and ensure compliance with the applicable laws.
In this article, we will discuss implementing the RO e-Transport system and when it will become mandatory. We'll also look at who needs to declare high fiscal risk goods and how to automate RO e-Transport reporting.
What is the RO e-Transport system?
The RO e-Transport system is a digital platform that monitors the transport of high fiscal risk goods across Romania. The system tracks and records all road vehicles with a maximum authorized mass of at least 3.5 tonnes ferrying a total gross mass of 500 kg or more high tax risk goods.
The high fiscal risk goods that will be monitored by the RO e-Transport system include:
- Vegetables, plants, food, roots, and tubers
- Beverages, alcoholic liquids, and vinegar
- Clothing and clothing accessories
- Cast iron, iron, and steel
- Footwear, gaiters, and their components
When will it become mandatory?
The RO e-Transport system became mandatory for all transporters of high fiscal risk goods on January 1, 2023. All carriers must register in the system and have their vehicles fitted with the necessary tracking device.
The system was initially set to become mandatory on July 1, 2022, but was postponed to October 1, 2022.
The Ministry then postponed it again to January 1, 2023, to allow time for compliance and implementation of necessary technical and administrative measures.
What is the goal of implementing the RO e-Transport system?
The RO e-Transport system aims to modernize and streamline the transportation of high tax risk goods across Romania. It'll help the government in various ways, including:
Reduce tax evasion
Taxes are an important source of revenue for any government. Goods transported between two regions in Romania are subject to high fiscal risks, which can often lead to tax evasion.
The system will help reduce this by providing real-time tracking of high tax risk goods. It also ensures that all declarations are correct and under applicable laws.
Romania has one of the highest VAT gaps in the European Union. The VAT gap is the difference between what is due to the state in taxes and what is actually collected.
The RO e-Transport system is expected to help reduce this gap by providing fiscal administration with better control over fiscal risk goods. It'll also help reduce paperwork and ensure compliance with fiscal laws.
Prevent illegal trade
The system will also help prevent illegal trade and trafficking of high fiscal risk goods. When users register in the system, fiscal administration can monitor their activities and detect any suspicious activity.
The tracking device will also help fiscal administration track goods in transit and ensure they reach their destination without any illegal detours. This will help fiscal administration ensure that goods are traded per applicable fiscal laws.
Improve productivity
The system will allow for real-time monitoring of the transport process, making it easier to detect any wrongdoings. This will result in improved productivity and efficiency of fiscal administrations.
Instead of monitoring the transport of fiscal risk goods, fiscal administrations will be able to focus on other tasks.
It'll also reduce paperwork and help fiscal administration access information about fiscal risk goods at any time.
The system will also allow transport companies to track their goods and update them on their progress.
What information needs to be entered into the RO e-Transport System?
The system requires various types of information to ensure the transport of high fiscal risk goods is conducted under applicable laws.
The information includes:
- Details of the sender and receiver of the goods
- Characteristics of the goods being transported, including quantity and value
- Place of loading and unloading
- Details of the transport means and vehicle data
Who needs to declare goods with a high fiscal risk?
There are several parties involved in goods transport with a high fiscal risk. They should declare such goods to the Romanian Customs Authority through the RO e-Transport system.
These parties include:
Consignee declared on the imports customs
The consignee must declare on the transport document when importing goods with a high fiscal risk. This party is responsible for declaring and clearing the goods before they enter Romania.
Exporter declared on the export customs
When goods leave Romania, the exporter must declare and transport the goods. They are responsible for preparing transport documents and submitting them to the national agency or Romanian Customs Authority.
Consignee in Romania
Goods entering Romania must be declared to the national agency or Romanian Customs Authority by the consignee in Romania. This party is responsible for transport documents, taxes, and clearance.
Supplier in Romania
Domestic transactions and intra-community deliveries require transport documents to be submitted by the supplier in Romania. The transport document must contain all necessary details about the goods and their transport.
What high tax risk product categories must use the RO e-Transport system
The RO e-Transport system monitors the entire transit of these goods, from the loading point to their destination. It also collects data on the parties involved in the transport and the goods being transported.
The system will control the transportation of high fiscal risk goods in various situations, including:
- Those resulting from intra-community transactions from the road border crossing point on entry and unloading in Romania
- Those resulting from the movement of goods to intra-community deliveries from the loading place to the road border crossing exit point in Romania
- Imported goods from the place of import to the unloading point in Romania
- Those belonging to two different economic operators between the place of loading and the place of unloading in Romania
- Goods exported from the loading place in Romania to the export customs office or road border crossing exit point
How does the system work?
The RO e-Transport system requires all transporters of high fiscal risk goods to register and have their vehicles fitted with the necessary tracking device. The system then collects data on the parties involved and the goods being transported.
The data collected is used to generate reports that can be used to identify fiscal risks and ensure compliance with fiscal regulations.
It also helps fiscal authorities to monitor fiscal risks and take necessary measures for fiscal control.
In addition, the RO e-Transport system also allows fiscal authorities to monitor fiscal risks in real-time and take necessary measures for fiscal control. This helps improve fiscal administration and ensure compliance with fiscal regulations in Romania.
How to automate RO e-Transport reporting?
The automation process requires economic operators to register in the Virtual Private Space (SPV) through a legal representative in their own name. Registration to the SPV became mandatory on March 1, 2022, to make the transmission of documents to tax authorities easy.
A legal representative is a legal entity that is authorized to ease connection and compliance with national and international e-transport regulations.
It integrates your Enterprise Resource Planning (ERP) systems and national transport authorities with necessary information regarding national territory, transport routes, and electronic invoices.
Storecove, a leading electronic transport compliance provider, provides a comprehensive suite of services to help you automate RO e-port reporting.
The platform integrates with national transport authorities for documents, enabling you to comply with RO e-Transport reporting easily.
Takeaway: Automate RO e-Transport reporting For tax compliance
The RO e-Transport system, implemented on January 1, 2023, is designed to monitor the transport of high fiscal risk goods and ensure compliance with fiscal regulations in Romania.
It aims to improve fiscal administration and make it easier for businesses to comply with tax regulations.
Automating RO e-Transport reporting can help businesses save time and effort in complying with the new regulations.
Companies must register in the Virtual Private Space (SPV) in their name or through a legal representative to make the transmission of documents to tax authorities easier.
Storecove is a leading RO e-transport compliance solution provider that enables businesses to comply with the set regulations. With our comprehensive suite of services, businesses can quickly and easily automate RO e-Transport reporting with minimal effort.
Register your business today to take advantage of Storecove’s e-invoicing solution's benefits.
More information about the implementation of RO e-Transport System in Romania (Oct 2022)?
Contact us for more information or schedule a consult with one of our e-invoicing experts.
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