- SAF-T is a standardized electronic document for disclosing extensive financial information to the Romanian tax authority ANAF
- Large and medium taxpayers are already familiar with SAF-T, and from 2025, about 1.9 million businesses will also need to create these reports
- SAF-T reports in XML format provide authorities with quick and transparent access to taxpayer business transactions, facilitating tax audits through digitalization
- The purpose of SAF-T is to detect and prevent tax fraud and to improve compliance with tax regulations and transparency
- SAF-T includes reporting on inventory and movements related to incoming and outgoing invoices, general ledger entries, cash flows, detailed financial statements, fixed assets, and inventories
- Mandatory for large taxpayers since January 2022 and medium-sized taxpayers since January 2023
- From 2025, small taxpayers including companies, research and development institutes, cooperative organizations, state enterprises, and foreign legal entities with branches or VAT registration in Romania will also be required to comply
- Exemptions include freelancers, sole proprietorships, family businesses, individual medical practices, lawyers, notaries, bankruptcy administrators, and legal entities dealing with classified information if file transmission would compromise security interests
- Reporting deadlines vary by taxpayer size and registration, with monthly, quarterly, and annual SAF-T reports due at specified times
- Late submission of reports can result in fines ranging from 1000 to 5000 Lei, and submitting incorrect or incomplete reports can lead to fines between 500 and 1500 Lei
- A grace period with no fines will be in effect for the first six months of 2025
- Non-compliance may lead to increased scrutiny by tax authorities, including tax audits and delays in processing VAT refunds and tax returns
- SAF-T declarations can be corrected and resubmitted at any time
Source: adz.news
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
