SAF-T reporting now mandatory for small taxpayers as well

Starting January 1, 2025, small taxpayers will be required to submit to the central tax authority a statement containing information from their accounting and tax records, known as the D406 Informative Statement (SAF-T), in accordance with legal provisions.

What is SAF-T?

SAF-T (Standard Audit File for Tax) is an international standard used for the electronic transfer of data from accounting and tax records from entities to tax authorities. In Romania, SAF-T is submitted to ANAF by companies through the Informative Declaration on the Standard Tax Control File – D406.

The purpose of this reporting is to allow tax authorities access to data from companies’ accounting and tax records in an easy-to-read format, in order to increase the effectiveness and productivity of tax control.

In Romania, this reporting has been implemented in stages: starting in 2022, large taxpayers will report, starting in 2023, medium taxpayers will report, and starting in 2025, reporting will become mandatory for all taxpayers, including non-resident taxpayers registered only for VAT purposes in Romania.

Similar to the two categories of taxpayers, small companies, which will be required to submit the D406 (SAF-T) information statement starting January 1, 2025, will benefit from a grace period, as follows:

• 6 (six) months for the first report, 5 (five) months for the second report, 4 (four) months for the third report, 3 (three) months for the fourth report, 2 (two) months for the fifth report, for taxpayers who are required to submit the SAF-T file on a monthly basis;
• 3 (three) months for the first report for taxpayers who are required to submit the SAF-T file on a quarterly basis.

SAF-T reporting is done:

• Monthly – for taxpayers with a monthly VAT tax period.
• Quarterly – for taxpayers with a quarterly or annual tax period for VAT, as well as for non-VAT payers.
• Submission deadline: the last calendar day of the month following the reporting period.

Exceptions to the SAF-T filing requirement

Religious institutions, homeowners’ associations and non-profit legal entities, authorised individuals, sole proprietorships, family businesses, individuals engaged in profit-making activities, family associations, limited liability professional law firms and individual law offices, professional notary firms, individual notary offices, and individual medical practices are exempt from submitting the D406 SAF-T declaration, according to ANAF.

Applicable penalties

Failure to submit the D406 informative statement within the deadlines provided by law, or the submission of an incorrect or incomplete statement, as determined by ANAF, will result in contraventions, in accordance with the provisions of Art. 337 – Penalties for summary declarations (which will also apply to the SAF-T file) of Law 207/2015 on the Tax Procedure Code. More specifically:

• a fine ranging from 1,000 lei to 5,000 lei in the event of failure to submit this declaration within the legal deadlines;
• a fine ranging from 500 lei to 1,500 lei in the event of submitting incorrect or incomplete declarations.