Standard Audit File for Tax (SAF-T) is a new electronic XML based reporting standard for tax, VAT and accounting in Norway.
The Ministry of Finance has decided that SAF-T will be voluntary until January 1, 2020, at which point it will become mandatory to deliver on SAF-T format for all bookkeeping entities (i.e. subject to the Bookkeeping Act). It is our understanding that only information booked starting January 1, 2020 need to be included in the SAF-T file.
The proposed Norwegian SAF-T reporting standard (March 2016) is based on OECD’s XML based standard - SAF-T - and includes these elements:
Additionally it is required to use standardized VAT codes and a standardized chart of accounts. Detailed invoice information, source documents, assets and inventories are planned to be included subsequent versions of SAF-T.
The Norwegian Tax Authorities will use the SAF-T file to perform controls and tax audits. Their long-term strategy for SAF-T is to replace other reporting activities, such as, VAT forms, tax filings etc.
SAF-T will only be requested for accounting periods starting after the implementation date (i.e. January 1, 2020).
Companies not required to perform bookkeeping in Norway:
Companies with 600 or less vouchers per year or less then NOK 5 millions in annual turnover and keep manual/ paper based accounts.
VOES (VAT on e-Services) companies.
The introduction of SAF-T will affect how your business communicates with the Tax Authorities.
When performing tax audits, the Tax Authorities will be able to perform data analyses on an unprecedented level. An XML-based transmission of data allows the appliance of sophisticated and pre-defined controls for testing, thus increasing the probability of detecting misstatements. For instance, through these analyses the Tax Authorities could identify misstated VAT entries within a few minutes.
We recommend that businesses immediately begin the process of:
Deloitte has experts specialized in SAF-T available to assist your organization with ensuring compliance. We also have developed a range of offerings designed to meet various clients’ complexity and needs.
A high-level understanding of the challenges to become SAF-T compliant in less complex or smaller organizations
A web based SAF-T assessment tool to quickly gain an understanding of your organization’s challenges. Our SAF-T experts will analyze the results and follow up in an online meeting to discuss the findings. You will also receive a high-level findings document.
An understanding of the challenges to become SAF-T compliant including potential actions and solutions.
The findings will be summarized in a report. The SAF-T Readiness Review focuses on potential systems, process, and organizational challenges.
Our approach consist of the following steps:
SAF-T compliance with Deloitte as a service provider
Deloitte, as an outsourced service provider, will prepare and report the SAF-T XML on behalf of your company.
Our dedicated team will use Deloitte’s proprietary taxCubeTM SAF-T to collect, combine, prepare and file the SAF-T XML. Deloitte also provides support to any SAF-T based audits and helps analyzing the SAF-T report.
Our customers may also license the taxCubeTM SAF-T for use by their internal operations teams. For a license fee, Deloitte will ensure that the solution maintained and compliant with the current SAF-T requirements.