Bulgaria to Implement Accounting SAF-T in 2025

Bulgaria is set to adopt the accounting Standard Audit File for Tax (SAF-T) in phases, expecting to start by 2025. This new obligation for Bulgarian entities marks a significant overhaul in its VAT reporting system. Developed by the OECD, SAF-T is a standardized data format designed to streamline the exchange of tax information between businesses and tax authorities.

Bulgarian SAF-T: Implementation Phases 

The SAF-T rollout will be conducted in a phased approach over a five-year period:

• Pilot Testing (0-6 Months): The rollout will commence with a pilot phase, where large taxpayers may voluntarily submit data using the SAF-T format to test the system and provide feedback.
• Mandatory Reporting for Large Taxpayers (6-24 Months): Following the pilot, large businesses will be required to file reports in SAF-T format. Full compliance from all large taxpayers will be expected by the end of the 24-month period.
• Inclusion of Medium-Sized Businesses (24-36 Months): Medium-sized enterprises will be incorporated into the SAF-T system, with mandatory reporting requirements taking effect by the 36-month mark.
• Expansion to Small Businesses (36-48 Months): Small businesses will be brought into the system, and compliance will be required by the end of the 48-month period.
• Micro-Enterprises (48-60 Months): The final phase will extend SAF-T reporting requirements to micro-enterprises registered for VAT. Compliance is expected 60 weeks after adoption.

Also, a grace period is foreseen in the project. Taxpayers who must start complying with monthly reporting in each phase are granted with a 6 months grace period.

The final implementation dates are yet to be confirmed. 

Bulgarian SAF-T: Reporting Requirements

Businesses under SAF-T will need to submit:

• Monthly Reports: Details from the general ledger, along with records of purchases, sales, and payments.
• Annual Reports: Information about assets.
• On-Demand Reports: Data on the movement of goods as requested by the tax authorities.

The phased implementation of SAF-T will provide a structured approach for businesses to adapt to the new reporting requirements and ensure a smooth transition to the updated system. Find the official information in the NRA, Bulgarian tax authorities' website.