Bulgaria is advancing its tax compliance framework by implementing the Standard Audit File for Tax (SAF-T), an OECD-developed international standard for electronic data exchange between taxpayers and tax authorities. This initiative aims to enhance transparency, streamline auditing processes, and facilitate more efficient tax compliance.
Implementation timeline
The SAF-T rollout in Bulgaria is planned in phases:
- 2026: Large enterprises (annual turnover over BGN 300 million or tax liabilities exceeding BGN 3.5 million) will commence reporting.
- 2028: Mid-sized enterprises (annual turnover over BGN 15 million or tax liabilities exceeding BGN 1.5 million) will be included.
- 2030: All other taxpayers, including micro-enterprises, will be required to comply.
This phased approach allows businesses sufficient time to adapt to the new requirements.
Benefits of SAF-T implementation
The adoption of SAF-T is expected to:
- Enhance Fiscal Risk Management: Standardized data facilitates better detection and management of fiscal risks.
- Reduce Administrative Burden: Automation of data submission simplifies compliance processes for businesses.
- Promote Compliance: Clear guidelines and standardized reporting encourage adherence to tax regulations.
Preparing for the transition
Business owners are encouraged to prepare for the SAF-T transition by consulting with tax professionals or digital accounting solution providers. Early preparation will facilitate a smoother adaptation to the standardized reporting requirements and ensure compliance with the new system.
