Romania introduces SAF-T and edges closer to mandatory e-invoicing
Legally established companies in Romania and non-resident entities who are required to keep double entry accounting books are in scope for Romanian SAF-T from 1 January 2022.
The mandate is being introduced in a phased approach based on taxpayer size. SAF-T submissions are via XML and contain over 800 fields.
The aim is to remove certain declarations and to generate pre-filled returns based on the information provided by SAF-T once the project has been rolled out.
This move is not uncommon and follows the trend being seen across the EU with tax administrations requiring increasingly granular data in real-time in Italy, Spain and Hungary paving the way for pre-populated VAT returns.
D406 must be submitted electronically in PDF format with an XML attachment and electronic signature. The combined file size must not exceed 500MB for it to be accepted at the portal.
The official name for the submission is D406. It has five sections:
The submission timeframes vary:
September 2021: Voluntary test period began with D406T allowing taxpayers to become familiar with the data extraction and mapping requirements.
January 2022: Starting 1 January for taxpayers designated by the Romanian tax administration as ‘large’.
During 2022: The date has yet to be announced for when mid-sized taxpayers will be in scope.
2023: Small taxpayers
The ANAF, Romania’s tax authority, has announced plans to introduce B2B e-invoicing and collaboration with industry stakeholders is expected as the e-invoicing platform is developed.
The ultimate goal, as is often the case when a tax administration wants visibility of more data so they can take steps to close their national VAT gap, looks set to be a system that ‘clears’ each supplier invoice prior to it being sent to a buyer.
As Romania edges closer to continuous transaction control e-invoicing, Sovos enables businesses to keep up with the latest requirements to meet the growing demands of VAT compliance.
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