Since January 2022, medium and large taxpayers in Romania are required to report their VAT electronically to the National Agency for Fiscal Administration (ANAF) using the Standard Audit File for Tax (SAF-T) system, specifically through the D406 form. This initiative aims to enhance the granularity and real-time nature of VAT reporting, benefiting both the tax authority and businesses by streamlining compliance and reporting processes.
Key Points:
- Legal Framework: The SAF-T requirement stems from amendments to the Fiscal Procedure Code, mandating electronic submission of accounting and tax records. ANAF issued Order No. 1783, which outlines the D406 form and submission procedures.
- Declaration Process: Taxpayers must submit transaction and accounting data via the D406, which includes sections on General Ledger, Accounts Receivable, Accounts Payable, Fixed Assets, and Inventory. However, Fixed Assets and Inventory are reported separately.
- Submission Deadlines: Deadlines vary based on taxpayer categories and VAT regimes:
- Monthly/Quarterly: D406 must be submitted by the last day of the month following the reporting period.
- Annual: The ‘Assets’ section is submitted with the annual financial statements.
- On-Demand: The ‘Stocks’ section is submitted upon request from ANAF.
- Timeline for Implementation:
- September 2021: Voluntary testing began.
- January 2022: Large taxpayers commenced filings.
- July 2022: Additional large taxpayers included.
- January 2023: Medium-sized taxpayers and certain financial institutions joined.
- January 2025: Small and non-resident taxpayers will be required to comply.
- Compliance: Businesses must adhere to reporting deadlines and ensure accuracy to avoid penalties. Automation solutions can assist in compliance, improving efficiency and reducing the risk of errors.
Source Sovos
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