A Guide to Bulgaria’s SAF-T Reporting Framework
As Bulgaria embraces tax administration digitalization, businesses must gear up for the adoption of the Standard Audit File for Tax (SAF-T). This reform, introduced in the 2025 State Budget Act, mandates SAF-T compliance starting in 2026. Early preparation is essential to meet this regulatory milestone effectively.
Understanding Bulgaria’s SAF-T Introduction
The SAF-T framework enables efficient electronic data exchange between taxpayers and tax authorities. Originally developed by the OECD, this standard has been implemented in several countries, including Romania and Ukraine.
Who Needs to Comply?
- Starting January 2026: Large enterprises in Bulgaria meeting specific criteria must submit SAF-T files.
- By 2030: Most enterprises, excluding certain micro-businesses and budget entities, will also need to comply.
- Foreign Businesses: Permanent establishments in Bulgaria may also fall under this obligation based on their activities.
A six-month grace period allows businesses some flexibility during the initial stages of compliance.
Key SAF-T Reporting Details
- Frequency of Submissions:
- Monthly: Accounting entries, invoices, and payments by the 14th.
- Annual: Asset-related data.
- Upon Request: Stock movement details.
- Scope of Data:
- Includes suppliers, customers, invoices, payments, stock movements, and assets.
- Specific details will be outlined by the NRA through further guidance.
- Flexibility and Burden Reduction:
- To minimize administrative strain, the SAF-T framework segments reporting by type and frequency.
Preparing for SAF-T Compliance
Affected businesses must take proactive measures to ensure readiness:
- Internal Assessments: Identify whether your enterprise qualifies as an “obliged person.”
- Technology Review: Assess and upgrade systems to meet SAF-T data exchange requirements.
- Employee Training: Equip teams with knowledge on SAF-T implementation processes.
- Seek Expert Guidance: Consult tax advisors to navigate compliance effectively.
Implications for Businesses
Adopting SAF-T is more than a regulatory requirement—it’s an opportunity to enhance transparency and efficiency in tax reporting. Businesses should prioritize compliance planning now to ensure smooth integration of SAF-T processes and avoid potential penalties.
