What is SAF-T for Tax Compliance?

The SAF-T format has been introduced in many countries around the world in recent years. Portugal was the first country to do this. SAF-T is a standard tax audit file, which is an XML-based file type. It is designed to facilitate efficient and sustainable exchange of tax information between businesses and tax authorities.

In the process of a global audit, more than once specialists are faced with problems of standardization and automation. SAF-T was introduced by the Organization of Economic Co-operation and Development, whose task was to create a standard tax data file that is easy to read, testable and data efficient for analysis. So that this file helps to quickly, according to the given tests, find anomalies in accounting.

This level of consistency helps the tax authorities to obtain results as soon as possible, and test results at the current time of the enterprise’s operation.

SAF-T advantages:

  • Reduced additional spending by tax administrations
  • Reduced business additional spending
  • It made tax audits faster and more efficient
  • File exchange security
  • Improved the quality of readability
  • Simplified data collection procedures.

SAF-T in Ukraine

Recently, it was reported that the Ministry of Finance has developed a concept for the implementation of E-audit. The concept refers to the phased implementation of the SAF-T audit file. In the future, All taxpayers submit a file of this format.

Structure SAF-T Ukraine

Detailed information about SAF-T in Ukraine is available here