Bulgaria is working on introducing the Standard Audit File for Tax Purposes (SAF-T). This initiative, slated to commence as early as January 2025, aims to modernize fiscal administration and bolster compliance among businesses operating within the country.
PHASED IMPLEMENTATION APPROACH
The SAF-T implementation strategy in Bulgaria will unfold in structured phases, beginning with the initial phase targeting “Large taxpayers.” This approach ensures a gradual integration of new reporting obligations, allowing for systematic adjustments and effective implementation.
SCOPE AND REPORTING REQUIREMENTS
The SAF-T reporting obligation will initially apply primarily to established taxpayers, with non-established VAT-registered entities excluded. The reporting framework encompasses two key components:
- Monthly Reporting: This involves regularly submitting financial data, including general ledger entries, purchase and sales invoices, and payment details, to ensure ongoing fiscal transparency.
- Annual Extended SAF-T: This report includes additional detailed information, such as fixed assets and inventory, providing a holistic view of financial activities throughout the fiscal year.
- At request: movement of goods.
PHASED IMPLEMENTATION TIMELINE
The introduction of SAF-T in Bulgaria will be phased over several years, beginning with large taxpayers and gradually expanding to include medium and smaller enterprises. The timeline for implementation is planned as follows:
- Pilot Testing: Initial voluntary filing by large taxpayers within the first six months after adoption.
- Mandatory Filing:
- Large enterprises (defined under the Bulgarian Accountancy Act) are mandated to file 12 months post-adoption.
- All large taxpayers are required to file within 24 months post-adoption.
- Medium taxpayers are required to file within 36 months post-adoption.
- Small and micro-enterprises are mandated to file within 48 and 60 months post-adoption, respectively.
BENEFITS AND RATIONALE
The adoption of periodic SAF-T reporting promises numerous benefits for both taxpayers and tax authorities:
- Enhanced Compliance: Standardized reporting reduces errors and discrepancies, fostering greater compliance among taxpayers.
- Administrative Efficiency: Monthly and annual SAF-T submissions simplify administrative processes, reducing operational costs and inefficiencies.
- Transparency and Fairness: Increased visibility into financial data promotes transparency, ensuring a level playing field for all businesses.
LOOKING FORWARD
The National Revenue Agency (NRA) will continue to provide guidance and updates on the phased rollout of SAF-T reporting in Bulgaria.
SAFT-T FORMAT
The developed working version of the Bulgarian Standard Audit File for Tax Purposes (SAF-T) XSD scheme follows the structure and is as close as possible to the XSD scheme provided by the OECD. Some changes are nonetheless included. These are available in the attached document, with changes vs. OECD format marked in yellow.
We are pleased to provide you with a Bulgarian version and an unofficial English translation.
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