The National Revenue Agency (NRA) has completed its joint work with the contractor appointed by the European Commission (EC) on the project to implement the international accounting standard SAF-T in Bulgaria. The implementation project was developed by the Organisation for Economic Co-operation and Development (OECD) and has already been successfully implemented in several countries including Portugal, Romania and Poland.
What is the aim of the project?
Implementing the new standard aims to collect data from large and medium-sized taxpayers in a uniform format. This will help, on the one hand, to reduce the administrative burden for businesses and, on the other hand, to exercise better control by auditors. This way of reporting also ensures that fiscal risk management is dealt with more effectively at both national and European levels.
This step is an important part of the NRA’s efforts to modernize and optimize tax reporting processes in Bulgaria. At the same time, it will ensure better communication and transparency in the relationship between taxpayers and the public administration.
What is SAF-T?
SAF-T is a computer file that easily retrieves a predefined set of accounting records in a commonly readable format. This file makes it easier for taxpayers to provide their electronic records to the IRS and therefore easier for auditors to access the accounting records. The information in the standard audit file will be supported by standard nomenclatures, such as the Combined Product Code Nomenclature.
A working version of the XSD schema of the Bulgarian SAF-T, which follows the structure and comes as close as possible to the schema provided by the OECD, is already available on the official website of the NRA.
Benefits of SAF-T implementation
The first effect of the SAF-T implementation is expected to be a significant reduction of the administrative burden for business and administration. This is evidenced by the experience of countries where the system is already successfully operational.
In the long term, the introduction of SAF-T in the country will also contribute to encouraging individuals to voluntarily comply with tax and social security legislation. Trust between the NRA and taxpayers will also be enhanced through the transparency and standardization that the system offers.
What is SAF-T?
SAF-T is a computer file that allows easy retrieval of a predefined set of accounting records in a commonly readable format. This file makes it easier for taxpayers to provide their electronic records to the IRS and therefore easier for auditors to access the accounting records. The information in the standard audit file will be supported by standard nomenclatures, such as the Combined Product Code Nomenclature.
A working version of the XSD schema of the Bulgarian SAF-T, which follows the structure and comes as close as possible to the schema provided by the OECD, is already available on the official website of the NRA.
Benefits of SAF-T implementation
The first effect of the SAF-T implementation is expected to be a significant reduction of the administrative burden for business and administration. This is evidenced by the experience of countries where the system is already successfully operational.
In the long term, the introduction of SAF-T in the country will also contribute to encouraging individuals to voluntarily comply with tax and social security legislation. Trust between the NRA and taxpayers will also be enhanced through the transparency and standardization that the system offers.