In addition to e-invoicing mandates, countries deploy a range of complementary measures which serve to reduce tax evasion and by extension reduce the VAT gap. VAT gaps are defined as the projected amount of revenue a government is expected to receive against the actual amount of VAT-related revenue collected by the government. This has been, and continues to be, a perennial problem across Europe which the introduction of e-invoicing mandates seeks to address. The reverse charge is one such complementary mechanism designed to circumvent the difficulties posed by VAT gaps. The reverse charge shifts the onus of paying the VAT to the customer rather than the supplier. This in turn means that suppliers cannot charge VAT on an invoice and knowingly avoid paying VAT after having received payment from a customer. Romania has extended the reverse charge mechanism on the following products:

• A variety of foodstuffs
• The exchange of certificates for greenhouse gas emissions
• The issuance of green certificates
• The delivery of integrated circuit devices

Romania has one of the highest VAT gaps in Europe, with an astonishing 34.9% of VAT unaccounted for in 2019. It is no surprise that governments continue to advance supplementary measures in addition to e-invoicing mandates to thwart substantial VAT gaps.