The digitalization marathon: SAF-T implementation in Romania

In 2022, Romania started the digital reporting of tax and accounting information, by implementing the SAF-T system (standard tax control file) by ANAF. This SAF-T reporting has been designed and launched by the OECD in 2010, and since then it has been implemented in multiple jurisdictions, each with the possibility to adapt the original SAF-T scheme.

In the case of Romania, the SAF-T schema implemented by the tax authorities is a complex one, which involves reporting of all the accounting and tax information of a company through SAF-T reporting. In detail, we are discussing about three SAF-T statements that will be submitted at different time intervals:

• (i) the monthly or quarterly 406 SAF-T statement that will include all accounting and tax operations,
• (ii) the 406 SAF-T statement for Fixed Assets which will be submitted annually, and
• (iii) the 406 SAF-T statement for Inventory which will be submitted at the request of the tax authorities.

At the same time, non-resident taxpayers that are registered for VAT purposes in Romania, will submit a simplified SAF-T statement that will take into account only the purchases and sales carried out through their Romanian VAT ID.

SAF-T reporting is mandatory for large taxpayers from 2022, and for the others from 2023 (medium taxpayers, banks, NBFIs, insurance companies or other financial institutions), respectively from 2025 (small taxpayers).

The submission of the SAF-T statement, i.e. the XML file containing the SAF-T reporting information, is performed towards ANAF similar to the submission of tax returns, attached to the D406 statement.

The deadline for submitting the SAF-T declaration is: until the end of the month following the reporting one (for the monthly SAF-T statement), until the deadline for submitting the annual financial statements (for the SAF-T statement of Fixed Assets) or until the date indicated by ANAF (for the SAF-T statement of Inventory).

Deloitte's team, made up of leading tax, accounting and IT specialists, has developed several SAF-T reporting solutions (taxCube, SAP add-on) that meet all the requirements proposed by the tax authorities. Thus, we can help you both in the pre-implementation stage (by reviewing the data flows necessary for SAF-T reporting and mapping the transactions from a VAT perspective and all the necessary encodings requested by ANAF), as well as in the implementation stage of a technical solution for SAF-T reporting.

In Deloitte we have a multidisciplinary team of tax advisors and accounting specialists who have deepened their knowledge on the SAF-T reporting in Romania, as well as a dedicated IT team that has developed and is ensuring continuous maintenance of the taxCube application used for SAF-T reporting.

The SAF-T reporting solutions proposed by Deloitte are already successfully implemented at numerous clients in Romania, but also in other jurisdictions that have implemented SAF-T reporting.

We are ready to go through this marathon with you, using Deloitte's SAF-T team and technical reporting solutions to step into the new era of digitalization of the relationship with the tax authorities.

• taxCube, a web-based application that can be used to import the source data necessary for the SAF-T reporting, generate SAF-T statements, validate them with taxCube and DUK validator and archive the SAF-T statements already submitted to tax authorities. taxCube is an application that can be installed on Deloitte's or client's server and can be customized according to the clients' needs (with the possibility to implement SFTP, data analytics, additional data validation, etc.).
• SAF-T SAP ADD-ON, the ZSAFT package, containing the necessary elements for the implementation of SAF-T (data elements, structures, tables, programs, functions, classes, transactions) that will be transposed into the client's SAP system, so that after implementation, the SAF-T reporting can be one click away;