In 2020 Romania announced that it would be introducing SAF-T-Reporting (ANAF) regulations. Through these mandatory transmissions of tax and accounting information, Romania aspires to establish more transparency and efficiency in its crusade against tax evasion. Romania’s VAT Gap has been a longstanding tribulation of the Eastern-European country. Commonly commanding the European Commission’s annual VAT Gap report, 2019 even found the country snatching the number one position in its ranking of countries suffering the largest gaps.
This blog post will provide more information on Romania’s SAF-T obligations: who should comply, what deadlines are applicable, and what information should be provided? Moreover, we will give you the rundown on SAP’s solution for compliance with this legal requirement, and how PIKON can assist you when implementing it.
SAF-T Romania
Standard Audit File for Tax (commonly abbreviated to SAF-T) is the OECD’s standard for the electronic exchange of accounting data between organisations and their government. First emerging in Portugal, SAF-T has since taken root in a manifold of countries, which now includes Romania. Romania’s variant of the SAF-T format is called ‘Informative Declaration D406’ or simply D406.
What does SAF-T Romania entail?
Specifically for Romania, the SAF-T requirements include a monthly or quarterly report, an annual report, and a report delivered solely at the request of the Romanian tax authority. The first report’s frequency depends on the company’s bookkeeping method and covers, among other things, its general ledger accounts and entries, customers, suppliers, products and tax information. The annual report should, for instance, detail the general ledger accounts and asset transactions. The third or ‘stock information’ report should include data on the company’s products, physical stock, and movement types.
The monthly SAF-T report each time needs to be submitted before the end of the month following the reporting period. The annual asset report’s deadline equals the deadline for submitting the company’s annual financial statements. Lastly the stock report’s deadline is variable, and will be communicated by ANAF alongside the filing request.
SAF-T reports should be supplied to the ANAF, the Romanian tax authority, as PDF files with an attached XML file.
Who should comply with SAF-T Romania?
The SAF-T requirements will be imposed on all Romanian companies and all foreign entities with a presence in Romania. The implementation will nonetheless occur in stages, first targeting large taxpayers (compulsory starting January 2022), then companies considered large taxpayers since 2022 (July 2022), medium taxpayers (January 2023) and finally small taxpayers and non-resident taxpayers with a Romanian VAT registration (January 2025).
Non-resident taxpayers with a VAT registration in Romania only need to submit a simplified SAF-T report, including solely the purchases and sales carried out through their Romanian VAT identification number.
What SAP solution is foreseen?
The Romanian government (ANAF) has foreseen a tool for validating XML files against the mandatory SAF-T format, and for creating a PDF file based on the XML content: DUKIntegrator. Those to whom the SAF-T requirements apply, are nevertheless left to their own devices for generating the XML files themselves.
Therefore, SAP has foreseen a solution for all three SAF-T Romania reports. All solutions are part of SAP Document & Reporting Compliance, an integrated SAP solution which strives for long-term end-to-end compliance with various country-specific legal requirements all over the world (e.g. SII Spain, SDI Italy, CFDI Mexico, RTIR and EKAER Hungary). The standard SAP solution will allow you to generate your SAF-T reports automatically, based on source information in your system. Moreover, all reports will be stored in one place, a central eDocument Cockpit (for ECC systems) or dedicated periodic reporting app in Fiori (for S/4HANA systems).
Learn more about the solution in our recording:
How PIKON can help you
With our Competence Center for Legal Requirements, we are a strategic partner who ensures that your SAP system and business processes meet different country-specific legal requirements all over the world in the long run. We have a team of experts that combine SAP expertise and in-depth knowledge of the end-to-end legal process and technical requirements of the Romanian and many other E-Invoicing and E-Accounting regulations. We have gathered this experience through our many SAP Document & Reporting Compliance and local implementation projects all around the world. Some examples are SDI in Italy, SII in Spain, CFDI and Complemento de Pago in Mexico, RTIR and EKAER in Hungary, XRechnung in Germany, the different legal requirements in Turkey, etc. We have also developed our own compliance SAP Add-Ons e.g. MTD VAT in the UK and the VAT Whitelist in Poland. Furthermore, we always keep an eye on new and changing legal requirements and inform our customers when action is needed. This ensures that your company doesn’t need to follow up on all the legal requirements yourselves, and you can concentrate on your daily business.
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