Global Daily Tax News, Bulgaria Preparing To Introduce SAF-T Reporting, (Apr 21, 2025)

Bulgaria's National Revenue Agency has begun preparations to introduce Standard Audit File for Tax (SAF-T) reporting requirements.

The purpose of SAF-T, developed by the OECD, is to establish a harmonized framework for electronic reporting internationally by companies of information relevant for tax audits. SAF-T is intended to be easily readable by revenue bodies by virtue of its standardization of layout and format.

Adopting SAF-T will enable Bulgaria to improve its tax administration and enforcement capabilities, including by enabling the tax authorties to quickly detect the riskiest taxpayers and transactions for tax audit. Presently, about 60 nations have introduced SAF-T reporting requirements.

Tax law provisions for the introduction of SAF-T reporting were included in the recently adopted State Budget Act.

The NRA said: "The structure, format, content, and method of submitting the standard audit file will be approved by an order of the Executive Director of the NRA, which will be published for public discussion in early May. Standard nomenclatures, which are an integral part of the file, will be attached to the order."

It added: "Over the next few months, the revenue agency will develop and implement a new electronic service for receiving data on the economic activity and accounting of liable entities in the standardized format."

The NRA intends to launch a pilot test phase in July, lasting six months. During this period, certain large businesses and insurers will be invited to participate on a voluntary basis. These businesses will then be obligated to file their accounting information to the agency using SAF-T from January 1, 2026. About 450 of the nation's largest businesses will be affected by the first phase of the program, which will last one year.

The NRA has said it plans to expand the requirements to businesses of all sizes, including micro-enterprises registered for VAT, over the next five years.