SAF-T is a new entry for Romania in 2022

By Georgeta Petrescu, Savvy Audit & Finance

Standard Audit File for Tax (SAF-T) represents a new statement for Romanian companies in 2022. SAF-T reporting was developed by the OECD, which benefits not only tax authorities but also multinational entities. The structure proposed by the OECD was designed as an international standard, and should be considered as the minimum necessary to extract relevant information from an accounting system – each country being able to decide how to implement, and what level of detailed information will be transmitted through the SAF-T file.

SAF-T was first published in 2005 and updated in 2010. Since then, various jurisdictions have decided to implement SAF-T based on the standard published by the OECD.

Standard SAF-T reporting aimed to achieve a standardised model for collecting and extracting tax and financial information, to be applied uniformly by companies with a global presence.

Depending on the jurisdiction, SAF-T reporting could be mandatory at the previously established deadlines.

SAF-T in Romania

It is a mandatory report for large taxpayers beginning 01 January 2022, with some exemptions.

The format of the report, which seems to be the most complex report requested by the Romanian tax authority, is based on the OECD SAF-T (version 2.0) and includes all modules proposed by the OECD. GL entries and AP & AR will be submitted regularly (monthly or quarterly, depending on the VAT tax period). As a rule, if there is no VAT registration for the taxpayer, the report will be submitted on a quarterly basis.

WHO will report?

• All Romanian companies or non-residents that are obliged to have accounting books;
• Non-residents who have RO VAT IDs; and
• Members of VAT groups that have to submit SAF-T reporting individually.

The objectives of the report

• The report is part of the automation and digitalisation of tax audits.
• Decrease the VAT gap, after implementation.
• Decrease the number of tax returns, some being eliminated after implementation.

Georgeta Petrescu

GGI member firm
Savvy Audit & Finance
Advisory, Auditing & Accounting, Corporate Finance, Fiduciary & Estate Planning, Tax
Bucharest, Romania
T: +40 723 521 862
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Savvy is an accounting, advisory, and audit group, established in 2005, with more than 50 financial experts. We pride ourselves on being a different kind of firm. One that contributes to a fair and prosperous world by caring for the success of our people and clients, the health of financial markets, and the integrity of our profession.

Georgeta Petrescu has 20 years of experience in tax consulting, business consulting, financial management. Her attention is mainly focused on tax consulting, financial management, financial analysis, and reporting, monitoring of financial and budgetary control systems, and making estimates of cash flows and optimising costs.

Published: International Taxation Newsletter, No. 16, Spring 2022 l Photo: stoimilov - stock.adobe.com