The National Revenue Agency (NAA) is starting a project to implement the international accounting data collection standard called SAF-T (Standard Audit File-Tax, v.2.0), developed by the OECD. This standard will be used for large and medium-sized taxpayers. The reason for this standardized reporting is to enhance risk management, reduce administrative burdens for businesses and the government, and boost voluntary taxpayer compliance at national and European levels.
SAF-T is a computer file that helps to retrieve a predefined set of accounting records in a readable format. This makes it easier for taxpayers to provide electronic records to tax auditors and for auditors to review accounting records. The NAA will gather international best practices from EU tax administrations, analyze the internal and external environment, and devise a strategy and roadmap for SAF-T implementation in Bulgaria. This project will take 24 months.
The SAF-T format is expected to enhance communication between the revenue agency and large taxpayers earlier and with medium taxpayers later. To achieve this, the NAA aims to improve its administrative capacity through knowledge exchange and adopting successful practices from countries with established SAF-T implementation.
The project aims to improve tax administration efficiency and reduce administrative burdens. Long-term benefits include encouraging voluntary compliance with tax and insurance legislation and fostering trust between the National Revenue Agency and its clients in Bulgaria. The European Commission reviewed existing EU implementations in France, Poland, and Portugal to streamline tax audits and reduce manual effort. A standardized system is under consideration for launch in 2025 for Bulgarian VAT taxpayers. SAF-T is used for VAT reporting, but deviations pose challenges for cross-border trade.
