SAF-T Standard Audit File for Tax

The new financial – fiscal reporting obligation

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Starting 1 January 2022, the tax authorities introduce a new financial-fiscal reporting obligation, namely the standard audit file for tax, SAF-T or declaration D406.

The companies will submit the new SAF-T informative statement regarding the accounting and fiscal records, the purpose of this reporting being the automated exchange of accounting and fiscal information between the taxpayers and the tax authorities.

The D406 return is submitted monthly or quarterly, depending on the fiscal period applicable for VAT. The elements that will have to be reported refer, among others, to information regarding suppliers, customers, purchase / sale invoices, payments, movements of goods, assets, products, balances, accounts, etc.

In terms of deadlines, the “old” large taxpayers will have the SAF-T reporting obligation starting 1 January 2022, and the “new” large taxpayers starting 1 July 2022. Medium taxpayers will report starting 1 January 2023, and small taxpayers starting 1 January 2025.

We recommend that all taxpayers check their tax status and begin preparations for SAF-T reporting in order to ensure that they will be able to comply with the new reporting obligation, analyse existing information in internal IT systems, identify and correct any issues that may arise in relation to the mandatory reportable information and identify the most suitable solutions for the implementation and generation of the SAF-T D406 Statement.

Our team of consultants, both in the field of tax and accounting and IT specialists, will provide you with solutions regarding the implementation of SAF-T reporting in order to support the needs and specifics of your company.

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STEPS NECESARY TO GENERATE SAF-T REPORTING

Darian team can assist you with the following steps necessary to be followed in order to generate SAF-T reporting according to current tax requirements:

This step consists in analysis of the data available in the company’s ERP or other systems in order to determine if all data required for the SAF-T reporting is available and can be retrieved or transposed in the format requested by the tax authorities.

We recommend this step is completed as early as possible for the company to have sufficient time to adapt its systems, if necessary!

We can perform an analysis on the main operations carried out by the company and review the way such operations will be reported from a tax perspective (VAT and WHT) in the SAF-T declaration, to assess whether the reporting is correct, in line with legal requirements.

Considering that the SAF-T reporting will be used by the tax authorities for the company’s documentary tax audit and will gradually replace the VAT reporting, it is important for the company to make sure tax data reported in the SAF-T declaration are correct and complete.

  • Mapping of existing reports – This process involves transposing all reportable data into the standard format required by tax authorities. Each module in SAF-T reporting has a specific structure and it may be necessary to compile multiple reports to reach the required level of detail.
  • Mapping of new / updated reports – Based on the above analysis, it may be necessary to add in the ERP system new data that is missing from the current reports. These new fields / reports will most likely not be available immediately, so a separate mapping step is required, starting from the date they are available.

Following the mapping, the data from the company’s internal reports will be transposed through a dedicated software solution in the standard reporting format, based on which the xml and the SAF-T declaration will be generated.

It involves the analysis of the reported data for a certain reporting period, in order to verify the correlations between the various modules in the SAF-T reporting.

The goal of this step would be for the company to have an overview of the company’s status, as viewed by the tax authorities, based on SAF-T reporting, for example correlations between transactions with assets reported periodically and assets situation reported annually.

Let’s get down to work!

  • We have experience in all the industries and we understand the challenges which can occur from an accounting and financial perspective.

  • We can assist you through the entire process of SAF-T reporting implementation, from the initial data analysis to the creation of SAF-T D406 declaration

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