The implementation of SAF-T Romania will bring a significant transformation to tax reporting for non-resident taxpayers. Starting from January 2025, new compliance requirements will be in effect, and the initial filing deadline is set for February 28, 2025. This applies to all transactions carried out in January by non-resident companies registered for VAT. A grace period has been granted by the Romanian tax authorities until July 31, 2025, but failing to comply after this date may result in penalties of up to 1,000 EUR for late submissions. These changes pose new challenges for businesses as they will need to adapt their accounting processes to meet specific reporting demands, such as sales, purchase invoices, and tax codes. The implementation of an automated and centralized system for collecting VAT data aims to simplify tax compliance and minimize reporting errors.

The ANAF has recently introduced new regulations for SAF-T with regards to non-residents.

The ANAF, also known as the Romanian National Agency for Fiscal Administration, has established a phased plan for implementing SAF-T reporting regulations. The compliance timeline will begin with large taxpayers in January 2022, followed by medium taxpayers in January 2023. Additionally, businesses that are not located in Romania but have a VAT registration number in the country must also adhere to the regulations by January 1, 2025.

The revised guidelines primarily focus on sales and procurement receipts, as well as tax codes for businesses operating outside the country. Moreover, ANAF has mandated the electronic submission of Form D406, which requires verification of the XML format and accompanying PDF files.

Key dates for the implementation of SAF-T in Romania:

The new regulations will have an impact on taxpayers with large businesses in January 2022, followed by medium taxpayers in January 2023. The changes will then affect small taxpayers and non-resident companies in January 2025.

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According to Romanian tax regulations, the due dates for reporting to the tax authority are determined by monthly intervals. This implies that non-resident companies must provide their SAF-T reports by the last day of the month following the reporting period. For instance, if the transactions occurred in January 2025, the deadline for submission would be February 28, 2025.

The ANAF has made changes to the Fiscal Procedure Code to incorporate measures that mandate the electronic filing of financial and tax documents. This action aims to enhance the effectiveness of reporting value-added tax through data-driven processes, particularly for international companies operating in Romania.

The operation of an electronic filing system remains the same.

The submission process for SAF-T Romania's electronic filing system consists of two steps. Taxpayers must electronically file Form D406, which includes a PDF and XML file. The system has specific technical specifications, such as a maximum file size limit of 500 MB for both files combined.

ANAF provides a specialized feature for larger companies that allows them to divide their reports into multiple sections for the designated time period. Moreover, taxpayers must extract the required data from their ERP systems and convert it into the SAF-T XML format to meet the submission criteria.

ANAF provides a validation tool for businesses that do not utilize computerized accounting or ERP systems, offering an alternative means of submitting D406 declarations in order to adhere to ANAF's technical standards and ensure precise data.

The ANAF provides the DUKIntegrator tool which helps to verify the precision of XML files and create corresponding PDF documents. Subsequently, taxpayers must electronically sign the PDF file, together with its XML attachment, using an authorized signature before submitting it to the E-Guvernare website.

In Romania, the SAF-T declaration comprises of more than 390 essential components pertaining to accounting and taxation that must be disclosed by companies. This structured approach is enforced by ANAF with the objective of facilitating the sharing of information, streamlining the taxation audit process for businesses, and automating administrative tasks to minimize burden.

Which Sanctions will ANAF Implement?

To guarantee a smooth incorporation into the revised reporting system, ANAF has introduced generous grace periods for the submission of SAF-T Romania. Initially, those who file on a monthly basis will have a grace period of six months for their initial submission, and this will decrease by one month for each subsequent reporting period until the fifth cycle.

Businesses that submit quarterly reports have a three-month grace period provided by ANAF after the initial required quarterly submission. However, all late submissions must be completed by July 31, 2025, in order to avoid any penalties.

Once the grace period has ended, ANAF will implement severe consequences:

Fines of up to 1,000 EUR will be imposed for late submissions, while penalties of 300 EUR will be given for incomplete or incorrect information.

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Overview

The authorities in Romania are committed to adopting digitalization through the implementation of SAF-T. By the start of 2025, companies from outside the country must make adequate preparations to adhere to these rules smoothly. The main emphasis for businesses should be on accurately extracting data from their ERP systems and properly converting it to XML format in order to submit Form D406.

Organizations are provided with a designated grace period to make necessary adjustments to their procedures. Therefore, it is advised that businesses utilize this allotted time to evaluate their reporting methods and validate their data through the use of ANAF's DUKIntegrator tool. Any delay in submission after the set deadline of July 31, 2025, may lead to penalties of up to 1,000 EUR, underscoring the significance of timely preparation.

The implementation of SAF-T in Romania is a significant step towards simplifying tax reporting. Therefore, it is essential for international companies operating in Romania to prioritize their compliance strategies and ensure that their accounting processes align with ANAF's technical standards. This standardized approach enhances the accuracy of tax reporting and streamlines administrative tasks by automatically collecting and verifying data.

We are here to help you in Romania.

We are fully equipped to provide our help, as we consistently offer assistance to all of our customers. To contact me, you can email me at frjacobs@telenet.be or reach out to me at +32 478 331 799.

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