From 1 January 2025, non-established companies registered for VAT in Romania became subject to submitting the D406 Standard Audit File for Tax (SAF-T). To ease the transition, authorities granted a six-month grace period without penalties, which ended on 31 July 2025.
What looked like a pragmatic timeline for Romania’s SAF-T rollout, in theory, quickly turned into a case study in the complexities of digital tax transformation. For both businesses and tax authorities, Romania’s SAF-T rollout offers valuable lessons – especially as the VAT in the Digital Age (ViDA) initiative gathers pace across Europe.
The authorities’ perspective
Romania first adopted SAF-T rules back in 2021, with phased rollouts for established businesses starting in 2022. For non-established companies, the six-month grace period was intended to provide sufficient time to adapt systems and processes.
However, the actual situation significantly differed. Here’s what happened:
Limited technical capacity:
The dedicated software to validate SAF-T of non-established businesses was significantly delayed until the very end of the 6 month transitional period (17 July 2025), only 13 days before the final deadline.
Lack of communication:
Tax industry professionals within affected businesses raised requests and concerns on how to handle the newly introduced reporting obligation, considering it had been technically impossible to fulfil. The authorities remained silent – no official announcement has been released on when and whether the SAF-T software will be released, nor did they indicate whether a postponement would be possible.
System reliability issues:
On the back of lack of communication from the authorities , businesses were pressed to consider alternative last-report options to meet the deadline. They resorted to sending the required file via alternative channels, i.e. email attempted to use the available SAF-T template. The early submissions through the ePortal did not generate standard acknowledgements, leaving businesses uncertain whether filings had been successfully received.
This disconnect between regulatory intent and operational execution highlights the risks of mandating digital compliance without ensuring infrastructure is ready.
The businesses’ perspective
Other digitisation measures such as eInvoicing and eReporting (mandated in 2024) may streamline the alignment to the SAF-T required record. However, for non-established businesses in Romania, SAF-T represents a significant additional compliance burden. Many of the data requirements go beyond what is typically available in VAT reporting systems, especially for businesses making only occasional supplies in Romania.
Key challenges included:
Commodity code reporting:
Many non-established businesses had no reason to maintain Combined Nomenclature codes prior to SAF-T, but now must urgently assign them.
Transaction-level detail:
SAF-T requires product specifications, quantities, and unit prices at a level of granularity not always available in existing VAT datasets.
Adjustment reporting:
Interpretations vary, creating uncertainty and potential inconsistencies.
Exchange rate rules:
Even minor differences in conversion or rounding methods can create discrepancies, leading to further complexity.
With limited time to adapt, many businesses were forced into “firefighting mode”—creating workarounds, relying on manual processes, and incurring significant compliance costs.
Key Takeaways :
Digitalisation should simplify compliance, but Romania’s SAF-T transition has shown the risks of rushed implementation.
For authorities:
- Grace periods are ineffective without the necessary technical tools.
- Transparent communication is essential to build trust and ensure compliance.
For businesses:
- Core systems are not yet adapted for digitisation and need to evolve to capture transaction-level data in a structured way.
- Ad hoc fixes may resolve immediate deadlines, but sustainable compliance requires long-term investment in data and technology.
- Investment in data and technology require resources and expertise in all related fields e.g. indirect tax, respective country/ form specific requirements, logistics/supply chain and software development.
Looking Ahead
Other European countries are taking a more gradual approach to digital reporting. Germany’s soft launch of e-invoicing and Denmark’s phased digital bookkeeping rules provide examples of how structured rollouts can support both compliance and system readiness.
Romania’s experience underlines a critical lesson: successful digital tax transformation requires collaboration, clarity, and preparation. For businesses, it reinforces the importance of building resilient compliance systems that can adapt to SAF-T, eInvoicing, and the upcoming changes under ViDA.
👉 At Fintua, we help businesses anticipate and navigate these transitions—turning regulatory challenges into opportunities for smarter, more efficient tax compliance.
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Authors
Darina Ivanova
Darina leads Fintua’s Tax R&D function. She has more than 20 years of experience in VAT and indirect taxes, gained across multiple areas – compliance and recovery, tax determination, consultancy and appeals. Over the course of her career, she has supported clients of all sizes – SMEs, large enterprises, and multinationals – across diverse business sectors on VAT matters on local, regional, and global level. Within the Tax R&D function, Darina ensures Fintua’s products and processes evolve sustainably in line with the dynamically changing tax landscape.
