Have you ever felt lost in translation during discussions where IT and business (audit) users are in the same meeting?
Or confused with a few SAP terms depending on which context?*
Here’s some simple definitions I compiled recently:
1. SAF-T OECD definition:
- Set of standard fields recommended by the OECD to be submitted in an electronic format to the tax administration of the country or region where the company operates in.
- XML file is the electronic format needed regardless of any system used by the company.
- Detailed level of data is provided up to field level.
- Country may adopt the OECD recommended schema and vary the fields they require from the company.
- OECD Schema: https://www.oecd.org/tax/administration/45167181.pdf
2. SAF-T audit definition
- A tax report format that contains a set of fields/columns/data headings that becomes a benchmark for tax administration in that country.
- When required by the government, this template must be followed by companies for their tax report submissions to allow tax authorities to validate consistency and accuracy of filed tax accounts.
- Example: Company code, Fiscal year, etc.
- File format
- Example: XML file, Text file, *.AIS file (for SAP systems)
5. Report audit term:
- Output of a data extraction and analysis
- Example: SAF-T XML file, SAF-T text file, FEC file
6. Report technical term:
- Code written to get the output
I hope this helps, I will certainly bookmark this for my future reference.
If you require further questions, feel free to contact me (firstname.lastname@example.org) and I can forward your question/s on to our software architect who will be happy to help.
*Maybe it’s just me (being in marketing).
*See the next post on 4 practical advice on how to better prepare for your SAF-T reports