What is SAF-T? The Global Push Toward Digital Tax Reporting

SAF-T (Standard Audit File for Tax) may sound like another bit of tax tech jargon, but it’s fast becoming one of the most important pieces of the digital compliance puzzle. If your business operates internationally, or plans to, it’s essential to understand what SAF-T is, how it works, and where it applies.

Born out of the OECD’s mission to modernize tax systems and boost transparency, SAF-T creates a consistent, structured method for tax authorities to request and review financial data. Whether it’s used for routine submissions or audit-time checks, this digital format is reshaping how tax gets done in dozens of countries.

Here’s a closer look at what SAF-T means, why it’s relevant to your VAT recovery efforts, and where you’ll need to be SAF-T-ready.

What Is SAF-T and Why Does It Matter?

SAF-T is an internationally recommended XML-based file format that enables tax authorities to collect accounting data from companies in a standard, machine-readable way. It covers a broad range of information, including:

General ledger entries
Customer and supplier transactions
VAT data
Invoices and payments
Fixed assets and inventory

For finance teams, it means pulling together all your accounting data in a clean, structured format. For tax authorities, it means faster audits, more accurate assessments, and fewer grey areas.

But while SAF-T is rooted in a common OECD framework, each country tailors its own rules. That means deadlines, submission methods, penalties, and implementation phases vary widely across jurisdictions.

SAF-T in Action: A Country-by-Country Breakdown

Let’s unpack how SAF-T works around the world, focusing on jurisdictions where it’s already live, being phased in, or on the near horizon.

Portugal: Leading the Way

Portugal has been at the forefront of SAF-T implementation. It requires both monthly submissions and annual reporting from businesses using certified invoicing software.

Key details:

Monthly SAF-T files due by the 5th of each month
Annual accounting SAF-T required from 2026 (covering the 2025 financial year)
Legal references: Código do IVA, Decreto-Lei No. 198/2012, Portaria No. 31/2019
Penalties range from €300 to €7,500 for non-compliance

Portugal’s tight SAF-T deadlines and certified software requirements mean businesses need to ensure their accounting systems are fully integrated and up-to-date.

Poland: SAF-T Powerhouse

Poland’s SAF-T ecosystem, called JPK (Jednolity Plik Kontrolny), is one of the most advanced. Monthly JPK files are mandatory, with new structures coming for corporate tax from 2025.

Key requirements:

JPK_V7M or JPK_V7K files submitted monthly
Covers VAT returns, sales/purchase ledgers
New formats (e.g., JPK_KR_PD for corporate income tax) start in 2025
Fines of PLN 500 per incorrect file if not fixed within 14 days

If you’re managing Polish VAT, your team must ensure data accuracy and structure across all submissions.

Romania: Gradual But Firm

Romania is rolling out SAF-T based on taxpayer size and type. The file, known as Form D406, varies in frequency but includes key VAT and accounting data.

Implementation timeline:

Large taxpayers: since 2022
Medium: since 2023
Small and non-residents: from 2025
Fixed assets: filed annually
Inventory: filed on request

Penalties for late filing can hit RON 5,000 – and there are no more grace periods.

Norway: On-Demand Obligations

In Norway, SAF-T isn’t a routine filing but is required on demand. From 2025, a new version (SAF-T Financial 1.3) becomes mandatory.

Who it applies to:

Businesses with digital accounting and NOK 5M+ turnover
Must generate and deliver SAF-T files during audits
Governed by Section 7-8 of the Bookkeeping Regulations

Failure to provide SAF-T when requested can result in administrative penalties and extended audits.

Angola: SAF-T as a VAT Reform Pillar

Angola integrated SAF-T into its VAT system in 2019. The requirements are strict, and businesses must use certified software with hash codes.

Quick facts:

Monthly SAF-T reports by the 20th of the following month
Applies to businesses with AOA 50M+ annual turnover
Covers invoicing, accounting, and inventory
Non-compliance can lead to invalid invoices or fines

France: The FEC Format

France’s SAF-T equivalent is the Fichier des Écritures Comptables (FEC). It’s not submitted regularly, but must be available during audits.

Important points:

Mandatory for all businesses using electronic accounting
Must comply with formatting rules in Article A47 A-1
Fines of €5,000 for non-compliant or missing files

France is also progressing toward real-time e-invoicing and e-reporting from 2026, which will work alongside the FEC.

Lithuania: Dual-Track SAF-T

Lithuania runs SAF-T under the i.MAS system. It’s a hybrid setup:

Monthly i.SAF invoice data reporting
On-demand i.SAF-T accounting file for audits
Full compliance required from 2020 for all VAT payers

Non-compliance risks include fines and data disqualification during audit analysis.

Austria: On-Demand Format

Austria’s SAF-T requirement is only enforced during audits. But you still need to be able to generate the file in the prescribed format.

No regular filing, but full data must be available
Based on OECD’s structure
Governed by Section 131 of the BAO

Luxembourg: FAIA Files on Request

Luxembourg uses the FAIA format for SAF-T compliance. It’s required during VAT audits and must include a full year of data.

Applies to businesses with €112,000+ turnover
Covers transactions, ledgers, and VAT declarations
Legal basis: Article 73 of the VAT Law

Bulgaria: SAF-T Launching in 2026

Bulgaria is in the early stages of SAF-T rollout:

Starts in 2026 for large businesses
Will apply to nearly all by 2030
Monthly filings and annual asset reports included
Governed by amendments to the TSSPC

Denmark: SAF-T-Ready Systems Required

From 2025, Denmark’s Bookkeeping Act requires all companies to use systems that can export SAF-T files.

Not a filing requirement (yet), but readiness is mandatory
Fines of up to DKK 1.5M for non-compliance
The law sets the stage for future e-audits and e-invoicing

Ukraine: SAF-T in Two Phases

Ukraine will implement SAF-T in two waves:

2025: large taxpayers must submit annual SAF-T
2027: all VAT-registered businesses included
SAF-T files must be delivered within two days of audit requests
Governed by Law No. 1914-IX and Draft Law No. 6255

Why SAF-T Should Be on Your Radar

Even if SAF-T isn’t mandatory in every market you operate in (yet), the trend is clear: tax authorities are embracing digital-first enforcement. SAF-T ensures they get the data they need quickly, with fewer disputes and more automation.

Here’s why that matters for you:

Missed VAT reclaim: If you can’t produce accurate SAF-T files, your claim may be delayed—or rejected altogether.
Fines and audit risk: Many countries penalize for incorrect or late submissions.
Futureproofing: SAF-T-ready systems help you scale into new markets without compliance headaches.
Audit readiness: Tax authorities increasingly want structured data over spreadsheets.