The challenge of the year for taxpayers is the D406 Declaration and the generation of the Standard Audit File for Tax (SAF-T).
The D406 Declaration is highly complex, and taxpayers are required to fill in over 200 fields with information regarding transactions with suppliers, clients, accounting records, invoices, payments, and tax details.
This reporting can only be done using dedicated software.
We discussed the challenges of this new reporting to ANAF and the accessible solutions for reporting correctly, easily, and quickly with Cristian Șalău, Chief Financial Officer at SOFTWARE IMAGINATION & VISION (SIMAVI).
What is SAF-T?
SAF-T (Standard Audit File for Tax) is an international standard for the electronic exchange or transfer of accounting data from companies to national tax authorities (ANAF) or external auditors. SAF-T emerged from the desire to implement a uniform tax reporting standard for companies, allowing authorities to monitor them more easily.
Since January 1, 2022, Romania has implemented the latest version of this standard, OECD SAF-T 2.0, which requires companies to submit the D406/SAF-T Declaration in XML electronic format.
The Romanian IT company Software Imagination & Vision (SIMAVI) offers a solution for the automatic generation of the SAF-T file and tax reporting in compliance with legislation. Since January 2022, our Large Taxpayer clients have been reporting the D406 Declaration, effortlessly and automatically generating the SAF-T file using SVAP2025, the newest Romanian ERP system.
Who needs to report SAF-T?
According to the Taxpayer Guide, large and medium-sized taxpayers have been required to submit SAF-T since January 2022 and January 1, 2023, respectively.
Companies classified as small taxpayers as of December 31, 2021, will be required to submit SAF-T starting January 1, 2025.
Why is it so difficult to report?
The format chosen by our country for SAF-T reporting is one of the most complex, as it requires the reporting of all accounting, financial, and tax information related to the transactions carried out by companies. Essentially, data about suppliers, clients, purchase/sales invoices, payments, receipts, goods movements, assets, products, and account balances must be reported.
Additionally, the SAF-T declaration cannot be generated from separate IT systems, i.e., non-ERP systems.
Why did all ERP programs need to be modified?
To generate the D406-SAF-T Declaration, ANAF issued nomenclatures so that the declaration could be generated according to ANAF nomenclatures, not the existing ones in each company’s ERP system. Thus, beyond the enormous complexity of the declaration, ERP programs had to be modified to include special modules for implementing SAF-T nomenclatures.
However, not all programs were modified. There are so-called ERP systems on the market where accounting entries are recorded without linking them to financial documents and operations, making the generation of the SAF-T Declaration impossible.
As for us, our nearly three decades of expertise in developing ERP software helped us provide our current and future clients with several additional features in our SVAP2025 system, beyond the AUTOMATIC SAF-T reporting module.
For example, a significant help for economic agents was the introduction of all sections of the Declaration as distinct tab pages, allowing users to verify the generated information directly in the window. Furthermore, detailed operations can be displayed to clearly identify the records in the system.
SIMAVI also provided clients using SVAP2025 with verification tools to identify potential discrepancies in advance. For instance, all sections of the declaration can be exported to Excel files for cross-checking with other reports.
In addition to D406, SVAP2025 can automatically generate other monthly and quarterly declarations and reports: D300, D390, D394, D112, Monthly Balance, Journals, Balance Sheet, and Annexes.
The solution for invoice digitization through the use of RO eFactura
In 2022, ANAF operationalized the RO-eFactura project, allowing the circulation of invoices between sellers and buyers through the ANAF system. Economic operators are already required to issue invoices in the eFactura format in Business-to-Government (B2G) transactions, with plans to extend the system to Business-to-Business (B2B) transactions as well.
SIMAVI added new functionalities to the Financial-Accounting component of SVAP2025 for generating invoices in the new eFactura format. The system allows the uploading of files to the ANAF portal (including authentication via qualified digital certificates) and checking the status of issued invoices.
For economic operators receiving invoices in the eFactura format, the files are processed in SVAP2025 and automatically recorded in Financial-Accounting.
Clients who have successfully implemented the SAF-T module so far include: AEROSTAR Bacău, IAR Brașov, Aerofina, NUCLEARELECTRICA, MERIDIAN Group, Constanța Maritime Port Authority, GAZEST, Apa CTTA Alba.
SVAP2025 is the integrated company digitalization solution, offering comprehensive business management, fully adapted to business and legislative requirements. Our solution is exceptional, and I say this not because it’s ours, but because of the dozens of successful implementations at large, medium, and small clients, both in the private sector and public administration.
