SAF-T (Standard Audit File For Tax) is a best practice standard created by the OECD (Organisation for Economic Co-operation & Development). It has seen widespread adoption by regulators across Europe, because it simplifies tax auditing and compliance monitoring for government regulators.
Although the Norwegian Financial Authority originally adopted SAF-T on a voluntary basis, it became mandatory for all businesses with a turnover of NOK 5 million or higher, on 1 January 2020. This was introduced to coincide with the country’s VAT modernisation programme, designed to digitalise reporting processes and future compliance requirements. Plans are in place to implement digital VAT returns in 2022 and new sales and purchase reporting will be introduced in 2023.
As with other European countries, Norway has introduced local variance to its SAF-T requirements. Although there are currently two key aspects to digital compliance - SAF-T Financial and SAF-T Cash Register – the rules are set to change significantly.
Regulators are increasingly requesting granular reporting information to enable accounting irregularities to be detected more readily. Currently, VAT returns completed in Norway are based on a 19-box format, but phase two of the country’s VAT modernisation programme is well underway. This will see the introduction of transaction level reporting for all sales and purchasing, with proposals for these changes already submitted. This is just for starters. It’s likely that additional data relating to bad debts, adjustments or input VAT reversals and withdrawals (self-supplies) will also soon be requested, adding to the challenge of complex data extraction from SAP.
These enhancements to VAT returns and reporting based on SAF-T data are expected to be effective in 2022 and 2023. Organisations will therefore only have a short timeframe to modify their systems and prepare. Tight controls will be needed for transaction posting in SAP, to protect tax master data and reconcile SAF-T data on the returns before filing. Inevitably, collecting and reporting the right information will become more challenging.
Let TJC ease you through this transition. For over 20 years, TJC Group has supported many of Europe’s leading organisations to ensure B2G compliance. Developed according to OECD guidelines, our ‘regulator ready’ SAF-T Norway software greatly simplifies compliance process, making it easy to meet data extraction and reporting obligations in line with current and future regulations.
Experts in SAF-T data management, TJC can support you with a range of other consulting services and SAP certified software, to minimise the cost and complexity of B2G reporting. In addition to Norway, our SAF-T by TJC centralised solution range includes software to ensure SAF-T compliant data extraction and reporting for other European countries - Austria, France, Lithuania, Luxemburg, Portugal, Poland and Spain.
Make us your trusted partner for outsourced B2G compliance. Learn more about TJC’s B2G consulting services and SAF-T Norway by TJC software. Contact us to arrange a call with one of our experts.