NRA introduces SAF-T in Bulgaria

What is SAF-T?

SAF-T (Standard Audit File for Tax) is an international standard that allows the electronic exchange of data between businesses and tax authorities. The aim is to facilitate audits and improve tax reporting. The file contains information on accounting records, invoices, tax data, inventories and other financial reports. It automates the verification of tax information and helps increase transparency and efficiency in tax administration. The Organization for Economic Co-operation and Development (OECD) developed the standard, and several countries have already implemented it. Portugal, Romania and Poland are some of them and the results there show positive effects.

SAF-T in Bulgaria

The National Revenue Agency (NRA) has completed its joint work with Ernst & Young (EY), the contractor selected by the European Commission (EC), on the project for the implementation of the international standard for the collection of accounting data from taxpayers in a unified format. This format is based on the Standard Audit File for Tax Purposes (SAF-T) developed by the Organisation for Economic Co-operation and Development (OECD).

A preparation plan for the implementation of the reform has been approved. It includes the preparation of a draft amendment to the Code of Tax Procedure. This draft will be published for public consultation. The next steps for the implementation of the new method of information exchange between taxable persons and the revenue agency include technical preparations, training and other related activities.

Expected benefits

The new way of working is based on the principles of transparency and standardisation. It will strengthen trust between the NRA and its customers

Benefits of the new reporting include better, more focused and timely communication between taxpayers and the revenue agency, as well as more effective fiscal risk management at both national and European level. This method will reduce the administrative burden on business and the administration and increase voluntary compliance by taxpayers.

The NRA publishes the timetable for the implementation of the reform on its website. Bulgaria initially plans to introduce the SAF-T filing obligation for large and medium-sized taxpayers.

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