As of January 2025, non-resident taxpayers registered for VAT purposes in Romania will be required to adhere to new reporting obligations. Specifically, they will need to submit Standard Audit File for Tax (SAF-T) reports. This regulatory change aligns with Romania’s broader effort to enhance tax compliance and improve VAT-related reporting mechanisms, particularly through data-driven processes. For non-resident businesses, these new requirements bring a series of key obligations that differ from those of resident taxpayers.
Key Differences in Reporting Requirements for Non-Resident vs. Resident Taxpayers
While both resident and non-resident taxpayers must comply with VAT reporting standards, the SAF-T reporting requirements for non-resident taxpayers will focus on specific data points. Non-resident taxpayers are primarily required to submit information related to sales and purchase invoices, as well as tax codes. This differs from resident taxpayers who may have broader reporting obligations under the SAF-T framework.
The SAF-T data will play a crucial role for Romania’s tax authorities, particularly for VAT reconciliation purposes. One of the primary goals of this data collection is to support the generation of pre-filled VAT returns (e-VAT). By automating and centralizing VAT data, the Romanian government aims to simplify VAT compliance and reduce errors.
Deadlines, Grace Periods, and Penalties for Non-Compliance
Under the new rules, non-resident taxpayers must submit their SAF-T returns by the last day of the month following the applicable reporting period. This means that for any transactions made in January 2025, the SAF-T report would need to be submitted by the end of February 2025.
However, in order to facilitate a smooth transition into this new reporting regime, the Romanian government has introduced a grace period. Non-resident taxpayers will not face penalties for late submissions of SAF-T reports for the first six months of 2025, provided the reports for January through June 2025 are submitted by July 31, 2025.
Once the grace period ends, penalties for non-compliance will come into effect. Businesses that fail to submit the SAF-T report in time may face fines of up to 1,000 EUR. Additionally, submissions that are incomplete or contain incorrect information can result in penalties of up to 300 EUR.
With these new SAF-T reporting requirements, non-resident taxpayers registered for VAT in Romania must prepare to adapt their accounting and reporting processes. Although the transition period offers some leeway, businesses should take proactive steps to ensure they meet the reporting deadlines and avoid potential fines. The Romanian tax authorities’ focus on using SAF-T data for VAT reconciliation and pre-filled returns underscores the importance of accurate and timely submissions.
What is SAF-T Reporting in Romania?
The Standard Audit File for Tax (SAF-T) is a standardized electronic format designed to simplify the exchange of accounting and tax data between businesses and tax authorities. Romania SAF-T has been implemented to enhance tax compliance, improve auditing efficiency, and ensure financial transparency for businesses operating in the country. The SAF-T Romania system allows companies to submit structured tax and accounting records in a digital format, reducing administrative burdens and streamlining tax audits.
When Was SAF-T Introduced in Romania?
Standart Audit File tax in Romania was introduced in phases, gradually expanding to include all taxpayers:
- January 1, 2022 – SAF-T became mandatory for large taxpayers.
- July 1, 2022 – Additional large taxpayers were included based on tax authority classifications.
- January 1, 2023 – The requirement was extended to medium taxpayers.
- January 1, 2025 – SAF-T will apply to small taxpayers and non-resident businesses registered for VAT in Romania.
This phased approach allows businesses of different sizes to prepare for compliance and ensure their accounting systems align with SAF-T Romania requirements.
SAF-T Deadlines in Romania
SAF-T reporting in Romania follows specific submission deadlines based on the company’s size and reporting frequency:
- Monthly or Quarterly SAF-T submission – Due by the last calendar day of the following month, in line with the VAT reporting frequency.
- Annual SAF-T submission for fixed assets – Required along with the company’s annual financial statements.
- SAF-T submission for inventory records – Provided upon request by tax authorities, with a minimum deadline of 30 calendar days for submission.
Missing the deadlines or submitting incorrect SAF-T files may result in penalties and compliance risks, making it essential for businesses to ensure timely and accurate reporting under the Standart Audit File Tax in Romania.
Is SAF-T Mandatory in Romania?
Yes, SAF-T is mandatory for businesses in Romania. The requirement applies to all taxpayers, with different implementation dates based on their classification. Companies must ensure their accounting and reporting systems are capable of generating SAF-T-compliant files. Failure to comply with Romania SAF-T obligations may lead to fines or additional tax audits as outlined in the SAF-T Romania framework.
SAF-T Requirements in Romania
The Romania SAF-T file format , known as the D406 form, includes multiple data sections to provide tax authorities with a comprehensive financial overview. The key SAF-T reporting categories are:
- General Ledger Data – Covers all accounting transactions recorded in the company’s financial books.
- Accounts Receivable and Accounts Payable – Provides details of customer and supplier transactions.
- Fixed Assets – Includes financial records of company assets and depreciation.
- Inventory Reporting – Contains stock movement details and valuation data.
SAF-T files must be structured in XML format, adhering to the predefined schema set by tax authorities. Companies should ensure their accounting software can generate and validate the SAF-T file format to prevent submission errors in line with the SAF-T Romania technical specifications.
SAF-T Declaration in Romania
Businesses must submit SAF-T files electronically via the designated tax portal. The submission process involves:
- Generating the SAF-T XML file from accounting or ERP systems.
- Validating the file to ensure compliance with the official SAF-T format.
- Submitting the SAF-T report through the online tax platform.
Companies should conduct regular internal checks to verify that their SAF-T data is accurate, complete, and formatted correctly before submission to avoid delays or rejections under the Standart Audit File Tax in Romania.
What Companies Must Declare SAF-T in Romania?
The SAF-T requirement applies to:
- Large taxpayers – Required to submit SAF-T since January 1, 2022.
- Medium taxpayers – Included in the requirement starting January 1, 2023.
- Small taxpayers and non-resident VAT-registered businesses – Will be subject to SAF-T reporting from January 1, 2025.
Non-resident businesses with VAT registrations in Romania must submit a simplified SAF-T report, focusing on their sales and purchase transactions.
Romania’s SAF-T reporting system is part of the country’s effort to modernize tax reporting, improve audit efficiency, and enhance financial transparency. Businesses must ensure their accounting systems are SAF-T compliant, generate accurate XML reports, and submit SAF-T files on time to meet tax obligations. By preparing for SAF-T compliance under the SAF-T Romania regulation, companies can avoid penalties, ensure regulatory alignment, and maintain a structured approach to financial reporting.