SAF-T: A Secure and Compliant Roadmap in Digital Financial Reporting

Oznur Ozen
3 days ago
2 min read

1. Introduction: What is SAF-T?

SAF-T (Standard Audit File for Tax) is a digital audit file developed by the OECD, aimed at allowing companies to submit their financial data to tax authorities in a standardized electronic format. It is designed to increase transparency, efficiency, and international compliance. It plays a crucial role, especially for multinational corporations needing to comply with varying country-specific tax regulations.

2. SAF-T XML Structure and Mandatory Fields

The SAF-T file is created in XML format and generally includes the following main segments:

- Header- MasterFiles- GeneralLedgerEntries- SourceDocuments

Mandatory fields typically consist of company information (tax number, company name), fiscal period information, accounting entries, and taxable amounts. Below is an example JPK_FA XML structure:

<JPK>

</Naglowek>

<P_1>180000000003</P_1>

<P_2A>2024-01-15</P_2A>

<P_13_1>416.67</P_13_1>

<P_14_1>83.33</P_14_1>

<P_15>500.00</P_15>

</Faktura>

</JPK>

3. Country-Specific File Formats and Directory Structures

4. Practical Example: SAF-T XML Reporting in SAP

Our SAF-T solution, integrated with SAP, offers detailed listing capabilities based on period, country, and document level. Below is a sample screenshot from our system.

5. Graphical Overview of XML Structure

6. Features of Our Developed SAF-T Program

Country Adaptations Supported:

- Poland: - JPK_FA (Invoices) - JPK_VAT (VAT Declarations) - JPK_KR (General Ledger) - JPK_MAG (Stock Movements) - KSeF UUID and QR-ready XML output

- Romania: - D406 SAF-T format - Segmented GL, AP, AR, FA, and Inventory reporting - XML and PDF submission requirements

- Ukraine (Prototype/Testing phase): - Customized XML structure based on national tax rules - Auto-matching using taxpayer identification numbers (TIN)

Technical Capabilities:

- Full Integration: With SAP FI, MM, SD, and AA modules- Automatic XML Generation: Based on country-specific XSD schemas- Document Tracking: UUID-based referencing and error reporting- Data Validation: Auto-checks for base amounts, VAT rates, and account compliance- Submission Options: - Manual download - Automated FTP submission - API integration via cloud

- Logging & Audit Trail: - Flagging of faulty entries - System log for every generated XML

7. Future Outlook

The reforms by the EU and OECD in digital tax auditing indicate a growing trend in SAF-T-like standards. With initiatives like ViDA, real-time invoice transmissions, automatic audit processes, and compliance checks are becoming increasingly central to tax systems.

8. Conclusion

Our SAF-T solution ensures compliance with international legal requirements while digitizing audit processes and reducing manual effort. Thanks to its SAP integration, it enables direct access to financial data and accurate XML generation.

As each country's regulations differ, our solution adapts accordingly with tailored validations and formats. This ensures full compliance with tax authorities while offering a user-friendly interface for operational ease.

In the digitalization era of tax reporting, SAF-T solutions are not just mandatory obligations—they are strategic tools to enhance efficiency.