Romania: Plans to introduce obligatory SAF-T reporting from 1 January 2022

Romania has announced plans to introduce obligatory SAF-T reporting from 1 January 2022. This will be rolled out in phases and the first phase will apply to large taxpayers.

Romania has been considering the introduction of the SAF-T for some time and it has been mentioned that some reporting obligations may be removed after the introduction of the SAF-T, such as the D394 form.

The SAF-T is a digital VAT return and the format will be XML. The creation of the XML file should be done using an ERP system. The SAF-T will be called D406 Informative Declaration.

The final D406 file should be submitted to the Tax Authorities by PDF with the XML file attached. The final D406 return should be digitally signed using a qualified digital certificate.

Taxpayers must file their SAF-T in accordance with their VAT reporting obligations, monthly or quarterly. SAF-T files will need to be sent to the Tax Authorities by the end of the month following the reporting period.

The Romanian SAF-T will follow the format that is prescribed by the OECD.

The Tax Authorities will provide taxpayers with a grace period of three months. This means that all SAF-T files for January, February and March 2022 will have to be reported by the end of April 2022 to avoid any penalties or fines.

If a SAF-T is not submitted on time, the taxpayer could be fined from RON 1,000 up to RON 5,000.

The SAF-T is quite complex and it is recommended that taxpayers begin preparations for reporting as soon as possible. The Romanian Tax Authorities are offering taxpayers a voluntary testing program before the 1 January 2022 deadline.

It is believed the voluntary testing program will commence in the middle of August 2021.

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