Submitting a SAF-T declaration goes beyond just providing accounting data, it also requires detailed VAT reporting. As tax authorities place increasing focus on VAT accuracy, businesses need to ensure that their SAF-T declarations align with their VAT returns (D300), as well as D390 and D394.
To identify discrepancies, ANAF runs 11 automated consistency checks after submission, reviewing how VAT data is reported within the General Ledger section of the SAF-T declaration. If inconsistencies are detected, businesses may be required to make corrections, address compliance concerns, or undergo further tax audits.
So, how can companies proactively verify their VAT data before submission and avoid these complications? Let’s break it down.
Understanding VAT reporting in SAF-T
When it comes to tax compliance, the SAF-T declaration isn’t just an accounting formality, it also plays a key role in tax compliance. Businesses are required to report:
✅ VAT transactions – ensuring all taxable operations are correctly recorded.
✅ Withholding taxes – also declared separately through D100.
ANAF’s long-term goal is to streamline VAT reporting by gradually phasing out other VAT-related declarations (starting with D394) and making SAF-T the primary data source for E-VAT (E-TVA). To stay compliant and avoid inconsistencies, companies must understand how VAT should be reported in SAF-T and ensure that VAT data in SAF-T aligns with D300, D390, and D394
Getting it right from the start means fewer errors, fewer corrections, and a smoother reporting process.
Technical aspects of VAT reporting in SAF-T
When reporting VAT in SAF-T, businesses need to structure their data correctly using the following fields:
- Tax Type – identifies whether the transaction is relevant for VAT, WHT or other taxes, with tax type 300 representing VAT.
- Tax Code – Defines the type of transaction, chosen from SAF-T nomenclatures. Example: Local purchases with 19% deductible VAT use tax code 301101.
- Tax Amount – Reflects the VAT value applied to the transaction.
Additionally, there are two important rules to follow:
- For invoice postings, Tax Type, Tax Code and Tax Amount must be reported at the level of the invoice lines (i.e. lines representing the Tax Base). If the company chooses to report Tax Type and Tax Code also at the supplier/customer level or VAT account level, then the Tax Amount must be 0.
- For VAT-related ledger entries that don’t have an invoice recorded in accounting (e.g., VAT adjustments, VAT settlement in case of suppliers that apply VAT on collection system, self-charged VAT, VAT on imports, VAT closing entries), the Tax Code must be reported on the VAT account (e.g., 4426 or 4427 accounts), but the Tax Amount must be 0.
⚠️ Failing to follow these principles can lead to errors in ANAF’s consistency checks or VAT reconciliation issues, potentially flagging the company for further review or even a tax audit. Getting it right the first time saves time, effort, and unnecessary compliance headaches!
How to perform automatic SAF-T verification using Latitude App
Manually reviewing SAF-T declarations for VAT accuracy can be a tedious and error-prone process. Latitude App simplifies this by automating the verification, ensuring your VAT data is correctly aligned with other tax reports before submission.
Using ANAF’s VAT system, which assigns each Tax Code to a specific D300 row, Latitude App automatically reconstructs the VAT return from SAF-T and compares it with the D300 prepared by the company. This process allows businesses to detect discrepancies early and ensure that VAT reporting is accurate, consistent, and fully compliant before submission to ANAF.
What to do if discrepancies are found?
When inconsistencies appear during the verification process, businesses need to investigate the root cause and take corrective action to ensure compliance.
📌 Using the wrong Tax Code
For example, if a Tax Code for intra-community goods is mistakenly applied instead of one for intra-community services, discrepancies will appear between SAF-T and D300, as well as SAF-T and D390. In such cases, the incorrect Tax Code must be identified and corrected to reflect the actual transaction.
📌 Transactions are reported without a Tax Code
This often happens in VAT-related ledger entries, such as VAT adjustments, self-charged VAT, or VAT closing entries, leading to inconsistencies when reconciling with D300.
📌 Non-compliance with Tax Code reporting rules
If the SAF-T solution does not correctly map Tax Types, Tax Codes, and Tax Amounts as required by ANAF, developers must adjust the system’s configuration to ensure the data is structured properly.
By catching and correcting these discrepancies early, businesses can avoid potential compliance risks and ensure their SAF-T declaration is accurate and aligned with ANAF’s reporting standards.
Ensure accuracy before submission with Latitude App
Verifying your SAF-T declaration before submission is the smartest way to avoid ANAF notifications, compliance risks, and last-minute corrections. By automating VAT verification, Latitude App ensures that all data are accurate, consistent, and fully aligned with ANAF’s requirements before submission.
Instead of wasting time on manual checks, businesses can eliminate errors, streamline reporting, and stay ahead of compliance challenges with an effortless, automated verification process.
Get it right from the start by verifying your SAF-T VAT data with Latitude App and submitting with confidence. Contact us at support@latitude-app.com and see how effortless tax reporting can be.
Watch how to verify SAF-T data in just three simple steps and leave guesswork behind!
✅ Verify your SAF-T Correlations with D300 VAT return
✅ Verify SAF-T vs. D390 and D394 in Latitude App