What Is the SAF-T System and Why Does It Matter?

SAF-T, or the Standard Audit File for Tax, is an international standard for the electronic exchange of financial and accounting data between businesses and tax authorities.
It was developed to streamline the exchange of data and make tax audits more efficient. SAF-T is increasingly being used for VAT reporting in the EU and other countries.
Several European countries have implemented SAF-T regulations, each with its own requirements and timelines.
SAF-T typically consists of standardized data files, including general ledger data, accounts receivable and payable data, inventory data, fixed assets data, VAT data, and journals.
Implementing SAF-T offers benefits such as improved accuracy, efficient auditing, transparency, cost savings, and global compliance.
To implement SAF-T, businesses need to assess compliance requirements, upgrade accounting systems if necessary, extract and transform data into the SAF-T format, and test and validate the files before submitting them to tax authorities.