What Is the SAF-T System and Why Does It Matter?
What is SAF-T, and Why Should You Care?
Which countries have introduced OECD’s SAF-T
UPCOMING IMPLEMENTATIONS, CHANGES AND UPDATES
- The Bulgarian government has published draft legislation for the introduction of mandatory submission of Standard Audit File for Tax (“SAF-T”) reports. The legislation is expected to be adopted and come into force in the beginning of 2025.
- As of 2026
- Who will have to submit SAF-T reports?
- SAF-T reporting will become mandatory for businesses in several waves:
- from 2026 for large enterprises with annual net revenue exceeding BGN 300 m. / EUR 153 m. or annual net tax and social security liabilities exceeding BGN 3.5 m. / EUR 1.8 m.;
- from 2027 for large, medium and small enterprises with annual net revenue exceeding BGN 300 m. / EUR 153 m. or annual net tax and social security liabilities exceeding BGN 3.5 m. / EUR 1.8 m.;
- from 2028 for large, medium and small enterprises with annual net revenue exceeding BGN 15 m. / EUR 7.7 m. or annual net tax and social security liabilities exceeding BGN 1.5 m. / EUR 0.8 m.;
- from 2029 for all large, medium and small enterprises;
- from 2030 for all VAT-registered enterprises.
- SAF-T reporting will become mandatory for businesses in several waves:
- Introduction: SAF-T is part of the Danish Bookkeeping Act, introduced to ensure a more secure and efficient way for businesses to share their bookkeeping data with the Danish tax authorities (SKAT) .
- Format: The SAF-T file must be in a specific XML format. This format includes various elements such as company details, general ledger, accounts receivable, accounts payable, and inventory.
- Implementation: The SAF-T requirements are being phased in from January 2024 (????). Businesses must use certified software to record, store, and report their accounting data.
- Scope: The SAF-T file covers all transactional data, including sales, purchases, payments, and inventory movements. It aims to simplify the exchange of VAT-related information between businesses and tax authorities.
- Compliance: Companies must ensure their bookkeeping systems are capable of generating the SAF-T file. This is crucial for compliance with the new digital reporting requirements.
- Timing for implementation: Unknown
- A new SAF-T format 1.30 must be used for the accounting period starting in January 2025
- New draft regulation amending JPK_VAT with a declaration published on 31st May 2024
- Amends data included in JPK_V7M and JPK_V7K returns
- New timeline: 1 Feb. 2026 to 1 Jul. 2026 for no obligation to include KSeF unique ID on VAT return
- Until 1 July 2026, no obligation to include data from simplified invoices in VAT return
- Timeline aligns with mandatory e-invoicing via KSeF starting on 1 Feb. 2026
- Mandatory submission of the SAF-T file
- Romanian SAF-T reporting obligation for non-established taxpayers by January 2025
- Starting January 1st 2025, SAF-T electronic files will be mandatory in Ukraine for large taxpayers
- Large taxpayers are legal entities with income exceeding five hundred million hryvnias over the last four fiscal quarters
- SAF-T file must be submitted to tax authority within two business days of receiving request
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