SAF-T Romania marks a significant shift in tax reporting as non-resident taxpayers face new compliance requirements starting January 2025. The first filing deadline falls on February 28, 2025, covering all January transactions for VAT-registered non-resident businesses. The Romanian tax authorities provide a grace period until July 31, 2025, companies failing to comply afterward risk penalties up to 1,000 EUR for late submissions. We understand these changes bring new challenges, as businesses must adapt their accounting processes to meet specific reporting requirements focusing on sales, purchase invoices, and tax codes. Through this automated and centralized VAT data collection system, the Romanian government aims to streamline tax compliance and minimize reporting errors.
ANAF Introduces New SAF-T Requirements for Non-Residents
The Romanian National Agency for Fiscal Administration (ANAF) has established a phased implementation schedule for SAF-T reporting requirements. According to the schedule, large taxpayers began compliance in January 2022, followed by medium taxpayers in January 2023. Specifically, non-resident companies with Romanian VAT registration numbers must comply starting January 1, 2025.
The new requirements primarily focus on sales and purchase invoices, along with tax codes for non-resident businesses. Furthermore, ANAF has mandated electronic submission through Form D406, which requires validation in XML format with corresponding PDF documentation.
Key implementation dates for SAF-T Romania:
- January 2022: Large taxpayers
- January 2023: Medium taxpayers
- January 2025: Small taxpayers and non-resident companies
The Romanian tax authority has structured reporting deadlines around monthly periods. Consequently, non-resident businesses must submit their SAF-T reports by the last day of the month following the reporting period. For instance, January 2025 transactions require submission by February 28, 2025.
ANAF has introduced these measures through amendments to the Fiscal Procedure Code, which mandates electronic submission of accounting and tax records. The tax authority aims to streamline VAT reporting mechanisms through data-driven processes, particularly for non-resident businesses operating in Romania.
How Does Electronic Filing System Work?
The electronic filing system for SAF-T Romania operates through a dual-file submission process. Primarily, taxpayers must submit Form D406 electronically, which consists of both a PDF file and an XML attachment. The system enforces strict technical specifications, including a combined file size limit of 500 MB for both documents.
For businesses exceeding the size limitation, ANAF provides a specialized module allowing submission in multiple segments for the same reporting period. Moreover, taxpayers must extract relevant data from their Enterprise Resource Planning (ERP) systems and convert it to the required SAF-T XML format before submission.
In addition to the standard submission process, ANAF offers a validation tool for the D406 declarations. This tool serves as well as an alternative method for businesses that do not utilize computerized accounting or ERP systems. The validation process ensures data accuracy and compliance with ANAF’s technical requirements.
The DUKIntegrator tool, provided by ANAF, supports the validation of XML files and generates corresponding PDF documentation. Subsequently, taxpayers must apply a qualified digital signature to the PDF file with its XML attachment before uploading it to the E-Guvernare website.
The Romanian SAF-T declaration encompasses more than 390 mandatory accounting and tax elements that businesses must report. Through this structured approach, ANAF aims to standardize data exchange, making it more efficient for tax authorities to audit companies while reducing administrative burden through automation.
What Penalties Will ANAF Impose?
To facilitate smooth transition into the new reporting system, ANAF has established comprehensive grace periods for SAF-T Romania submissions. Primarily, monthly filers receive graduated grace periods starting with six months for their first submission, decreasing by one month for each subsequent period until the fifth reporting cycle.
For businesses submitting quarterly reports, ANAF grants a three-month grace period following the initial mandatory submission quarter. Nevertheless, all late submissions must be completed by July 31, 2025, to avoid penalties.
After the grace period expires, ANAF will enforce strict penalties:
- Late submissions face fines up to 1,000 EUR
- Incomplete or incorrect information results in penalties up to 300 EUR
The tax authority will use SAF-T files as evidence during tax inspections to verify compliance between tax returns and accounting records. Therefore, businesses must ensure their accounting and tax-related information aligns precisely with monthly, quarterly, or annual reporting requirements.
Despite these stringent measures, ANAF’s structured approach aims to maintain data accuracy and integrity. Notably, the validation procedure helps businesses identify potential issues before submission, reducing the risk of penalties. The tax authority’s focus remains on ensuring complete and accurate reporting rather than penalty collection.
Conclusion
Romanian tax authorities demonstrate their commitment to digital transformation through SAF-T implementation. Non-resident companies must prepare their systems before January 2025 to ensure smooth compliance with these requirements. Above all, businesses should focus on accurate data extraction from their ERP systems and proper XML formatting for Form D406 submissions.
The structured grace period offers companies time to adapt their processes. Therefore, businesses should use this opportunity to test their reporting mechanisms and validate their data through ANAF’s DUKIntegrator tool. Companies face penalties up to 1,000 EUR for late submissions after July 31, 2025, making early preparation essential.
SAF-T Romania represents a significant step toward standardized tax reporting. Consequently, non-resident businesses operating in Romania must prioritize their compliance strategies, ensuring their accounting processes align with ANAF’s technical specifications. This standardized approach promises better accuracy in tax reporting while reducing administrative complexities through automated data collection and validation.
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We stand ready to assist you, just as we currently support all our clients. Contact me at frjacobs@telenet.be or reach me at +32 478 331 799.
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