Romania's SAF-T Returns and Becomes Mandatory Starting January 2022
December 28, 2022
The Romanian tax authorities have mandated that all taxpayers file SAF-T accounting returns until 2025.
Beginning in January 2022, major taxpayers in Romania are required to use the Romanian Accounting SAF-T system. The first wave of SAF-T deployment for big taxpayers was pushed back to January 2023 since the transition time was extended to a 12-month period. In Romania, the SAF-T form is called the Declarația informativă D406.
As part of a methodology that guarantees increased efficiency and productivity in computer assisted fiscal control, SAF-T grants tax authorities access to data from the accounting and tax records of taxpayers and payers stored and processed electronically, in an easily readable format, for substantial testing of system controls and data using proprietary audit software.
What Should Be Included in SAF-T Returns in Romania?
This SAF-T was designed for long-standing businesses' accounting needs. As part of the filing process, taxpayers must take data from their ERP systems and transform it into the SAF-T XML format. It must first undergo tests to ensure its accuracy to submit the information.
The Romanian SAF-T will be subdivided into five components in line with the OECD's general standard file version 2: general ledger, accounts receivable, accounts payable, fixed assets, and inventory.
Romanian D406 form will provide more information than the present 390 Recapitulative Statement.
Taxpayers may produce the SAF-T file using one of the following methods:
The computer system will automatically produce the XML file for taxpayers with electronic accounting systems or enterprise resource planning systems.
Manual entry of relevant data directly into an XML editor Informational declarations (D406) may be checked using the validator made available by the ANAF. This strategy is offered to taxpayers who lack computerized accounting systems or enterprise resource planning software.
You can also opt to use external generation by a data operator with specialized skills. Taxpayers that utilize financial accounting outsourcing services regularly might employ this strategy.
Deadline for Submission of SAF-T Returns
Those taxpayers enrolled for value-added tax in Romania must submit Form D406 at the same intervals at which they submit their VAT returns.
Taxpayers who are VAT registered in Romania will submit Form D406 at the same time they submit their VAT returns. The deadline for the regular D406 submission will be at the end of the month following the month in which you filed an income tax return (monthly for sections other than inventories and fixed assets).
The D406 Informative Statement's fixed-assets section submission date will coincide with the financial statements filing deadline.
Upon Request by Tax Authorities
The deadline will be certified by tax authorities and will be at least 30 calendar days from the day the request is made (in the Inventory section).
How to Submit SAF-T Returns
The D406 form will be submitted online through the submission of a PDF file with an attached XML file. The size of these two files must not exceed 500 MB; otherwise, the electronic platform will reject the submission.
If the maximum file size is exceeded, there is a module for submitting the information in separate portions for the same period.
If the first SAF-T file has a mistake or inaccuracy, a corrective SAF-T must be provided. This second submission will be deemed the corrected SAF-T return.
Which Businesses Are Required to Submit SAF-T?
The tax authorities have developed a schedule mandating the filing of the D406 depending on the size of the company:
January 1, 2022: major taxpayers in Romania
July 1, 2022: the second group of major taxpayers following the tax authority's regulations.
January 1, 2023: medium taxpayers, following tax authority regulations.
January 1, 2025: small taxpayers
By 2025, non-established enterprises registered for VAT in Romania might also be required to submit SAF-T.
Non-established firms registered in Romania just for VAT purposes are not specifically listed as eligible to be included in the category of big or medium taxpayers in the published orders of the tax authorities (specifically Order numbers 1782/2021 and 3610/2016).
In light of this, it is anticipated that SAF-T will become fully applicable to these companies as of January 1, 2025. It is also anticipated that various improvements and simplifications would be implemented to establish enterprises' current SAF-T return setup.
Still, we need official word from the tax agency on how the Romanian SAF-T would affect foreign-based businesses with VAT registration in Romania.