SAF-T (Standard Audit File for Tax) is slowly but surely finding its way to tax authorities. This is a standardized communication between taxpayers and authorities.
Initially this was limited to the submission of tax returns (and accessory filings, like the EU sales listings), but authorities increasingly use this standard for broader audit requirements, like submission of invoices and VAT worksheets.
SAF-T is generally part of an even broader effort of authorities to nudge companies to embrace a “Tax Control Framework” (TCF). The idea behind this is that companies have the tools available to better manage their VAT position.
In addition, companies that apply TCF generally look for a more transparent relationship with the tax authorities. If you google “Tax Control Framework” you will find lots of reports and sample processes. Also see here: http://www.iota-tax.org/iota-news/tax-control-framework-the-netherlands.html for a comprehensive overview.
Taxback now reports on a new filing requirement in Hungary, which is in line with what we have seen in countries like Austria, Portugal (link in Portuguese) and Luxembourg, that have specific legislation on SAF-T requirements.
Starting January 1, 2016, business that are registered for VAT in Hungary (this includes non-residents) will be required to use specific software that will allow them to export invoices or data required to the tax authorities.
The purpose of this is to ensure facilitation of audits for control purposes and to speed up transactions.
If you want to know more about improving global VAT management, please drop me a note. Over the past years I have been working with a couple of my global clients specifically on this matter. I will then talk you through the slide below, which is a great example of how important VAT management is for your global organization.
Mark Houtzager via Get ready for SAF-T | Value Added Tax Blog.