Bulgarian businesses to submit standard audit files (SAF-T) starting in 2026.
Bulgaria is preparing to implement the Standard Audit File for Tax (SAF-T), an internationally recognized tax reporting framework supported by the OECD. This initiative will be rolled out in phases over the next several years, aligning Bulgaria with other European countries adopting this standardized system.
What is SAF-T
SAF-T, or Standard Audit File for Tax, is an international standard designed for the electronic exchange of reliable accounting data between organizations and tax authorities or external auditors. Developed by the Organisation for Economic Co-operation and Development (OECD), SAF-T aims to facilitate tax compliance and streamline the auditing process.
Benefits of Using SAF-T
Efficiency in Audits: By providing a standardized format, SAF-T simplifies tax audits for authorities, making it easier to detect anomalies in a company’s accounting practices.
Cost Reduction: The use of SAF-T reduces administrative costs for both companies and tax administrations by minimizing the number of documents required for tax compliance.
Cross-Border Compliance: SAF-T supports businesses operating in multiple jurisdictions by offering a consistent framework that can accommodate varying local tax requirements.
Bulgarian SAF-T Reporting Requirements
Businesses will be required to submit various SAF-T reports based on their size and reporting phase. The reporting framework in Bulgaria will include three key categories:
1- Monthly Reports (due by the 14th of the following month):
General Ledger: Journal entries for all transactions.
Accounts Payable and Receivable: Detailed records of supplier and customer transactions.
Sales and Purchase Invoices: Information on all business transactions.
2- Annual Reports (due by June 30th of the following year):
Fixed Assets: Master files detailing asset data, depreciation, and revaluation.
3- On-Demand Reports:
Inventory: Data on product master files, stock movements, and inventory levels.
A six-month grace period will be provided for the first submission, allowing businesses time to adapt to the new system.
E-Invoicing Plans
Although still in development, Bulgaria is working towards integrating e-invoicing as part of its broader digital tax strategy.
Global Alignment and Key Takeaways
Phased Implementation: The SAF-T rollout will begin in 2026, with large enterprises, followed by mid-sized businesses in 2028, and all taxpayers by 2030.
Comprehensive Reporting: Monthly, annual, and on-demand reports will include data on general ledger entries, invoices, assets, and inventory.
E-Invoicing Development: As part of Bulgaria’s digitalization efforts, e-invoicing will be introduced in the future.
Global Standards: Bulgaria’s adoption of the OECD’s SAF-T standard enhances global tax transparency and aligns the country with other European nations.
Businesses must stay informed about these changes and be prepared for the phased implementation of SAF-T, ensuring they meet the new reporting requirements by 2030.
Melasoft’s Role in SAF-T Implementation
Melasoft will assist businesses with its SAF-T Reporting Tool, which generates SAF-T reports fully reconciled with VAT returns, ensuring compliance with Bulgarian and European tax regulations.
Don’t wait until the last minute to prepare for Bulgaria’s SAF-T implementation. Contact Melasoft today to learn how our solutions can simplify your tax reporting processes and ensure compliance with the latest regulations.
Comments