Bulgaria's SAF-T Implementation: What Businesses Must Know by 2030

Bulgaria is on its way to joining the Eurozone and implementing the Euro as the official currency. However, it will also implement the accounting Standard Audit File for Tax (SAF-T), joining countries such as Portugal, France, and Romania, which already have SAF-T rules.

Developed by the OECD, SAF-T is an electronic XML-based reporting standard for tax, VAT, and accounting, which generally contributes to the transparency and efficiency of tax reporting.

Impact on Taxable Persons

The introduction of SAF-T will be completed in several phases. The first phase will start on January 1, 2026. From that date, the largest taxable persons from the fiscal year 2023, whose net sales are over BGN 300 million or whose tax contributions exceed BGN 3.5 million, will be able to submit data using the SAF-T format voluntarily. This test or pilot phase will last up to six months.

After this six-month test period, large taxable persons must fully comply within 24 months. Once all the largest companies are subject to the SAFT-T, the next phase includes medium-sized taxable persons, who will have around a year to fully comply with the SAF-T requirements.

The fourth phase will include small businesses, while the final phase will include micro-enterprises registered for VAT in the SAF-T reporting requirements. The project to implement mandatory SAF-T requirements is planned to be completed by 2030.

The reporting frequency includes monthly reports for purchase and sale invoices and payments and annual reports regarding assets. However, the National Revenue Agency (NRA) may require additional reports, which must be submitted upon request.

Reports include information about customers, suppliers, purchase and sales invoices, payments, stock movements, assets, and products.

Conclusion

The 4-year implementation plan, which includes detailed roll-out phases, gives all companies subject to the SAF-T reporting requirements enough time to prepare for the mandatory reporting rules. Some steps that should be considered include monitoring the implementation, contacting tax authorities or tax consultants for more information, and organizing training on implementing SAF-T in day-to-day business operations.

Source: EY, Deloitte, Bulgarian National Revenue Agency