Pre-read What is SAF-T, and Why Should You Care
The Standard Audit File for Tax (SAF-T) in Denmark is a digital tax reporting requirement introduced by the Danish Bookkeeping Act in July 2022. SAF-T mandates that businesses must report their tax transactions as digital files in a specific format to the Danish tax office, SKAT, as part of the country’s digital bookkeeping system. This functionality is designed to help businesses remain compliant with digital tax reporting laws in Denmark [1].
The Danish Business Authority, Erhvervsstyrelsen, has developed the proposed version of SAF-T reporting for resident businesses to adopt. This version of SAF-T is based on version 2 of the OECD model, and Denmark is following 12 other countries in adopting this format for tax authorities to request [2].
The structure of the Danish SAF-T schema includes various components:
- Master File
- General Ledger accounts
- Taxonomies
- Customers
- Suppliers
- Tax table
- UOM table
- Analysis type
- Movement type
- Products
- Physical stock
- Owners
- Assets
- Source Documents – GL entries
- Sales invoices
- Purchase invoices
- Payments
- Movement of goods
- Asset transactions
SAF-T submissions are phased in over time. As of July 2023, SAF-T is in public preview and is expected to become generally available in October 2023 [1]. However, it’s important to note that the phased introduction of SAF-T and digital bookkeeping from 2024 to 2026 may be uncertain following a government change [2].
The implementation of SAF-T and digital bookkeeping is part of the broader certified digital bookkeeping requirements in Denmark. Businesses are obligated to use certified accounting software that can produce and receive VAT e-invoices in specified formats like OIOUBL and Peppol BIS. This move towards digital bookkeeping aims to enhance tax reporting accuracy and transparency while ensuring compliance with the country’s tax regulations.
In summary, SAF-T in Denmark requires businesses to report their tax transactions digitally in a specific format to the Danish tax office, SKAT. It is part of the country’s digital bookkeeping requirements and follows the structure based on version 2 of the OECD model. While SAF-T is currently in public preview, it is expected to be generally available by October 2023. However, the phased introduction of SAF-T and digital bookkeeping from 2024 to 2026 may be uncertain due to potential changes in the government’s policies.
Sources
- Denmark SAF-T: Businesses obliged to use certified accounting software able to produce and receive e-invoices
- Danish SAF-T Financial data, version 1.0 – Technical description
- Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE
- Join the LinkedIn Group on ”VAT in the Digital Age” (VIDA), click HERE
