The Ukrainian Ministry of Finance has launched an optional Standard Audit File for Tax (SAF-T) regime effective January 1, 2023.
This regime will become mandatory for annual reporting for large taxpayers starting January 1, 2025, and will extend to all taxpayers by January 2027.
In early November 2024, the State Tax Service released the updated version, SAF-T UA 2.0, featuring a simplified XML structure with fewer mandatory fields and clearer requirements for data types, aligning with national accounting standards.
SAF-T UA Reporting Requirements
Referred to as SAF-T UA, the OECD-format transactional-level report will be required before regular tax audits. Taxpayers will be given a two-day notice to prepare and submit the report, which will include the following data schema:
- General ledger accounting entries
- Sales ledger
- Cash receipts
- Fixed asset register
- Intangible asset movements
- Tax reconciliation
Implementation Timeline for SAF-T UA
The timetable for the phased introduction of SAF-T UA is as follows:
- On-Demand for Large Taxpayers: January 1, 2023
- Periodic Mandatory Submissions for Large Taxpayers: January 1, 2025
- Periodic Submissions for All Taxpayers: January 1, 2027
Background on OECD Standard Audit File for Tax (SAF-T)
The OECD introduced v1 of SAF-T as a standardized format intended to facilitate efficient information exchange between tax authorities and taxpayers. This XML-based standard has already been adopted by over ten European countries.
The SAF-T structure includes the following components:
- General Ledger: Journals
- Accounts Receivable: Customer master files; invoices; payments
- Accounts Payable: Supplier master files; invoices; payments
- Fixed Assets: Asset master files; depreciation and revaluation
- Inventory: Product master files; inventory movements
How Can KGT Support You?
KGT has created an SAP-integrated SAF-T add-on solution for Ukraine, featuring outbound and inbound functionalities to meet tax reporting requirements. This add-on includes a data extractor and a cockpit for generating periodic SAF-T files in the legal format and controls before submission. When SAP DRC launched the Ukrainian SAF-T solution as part of its e-document offerings, KGT emerged as a leading consultancy firm for SAP DRC and tax services. Recognized as an SAP DRC partner for Ukrainian SAF-T services, KGT is one of SAP's recommended implementation partners for this solution. We provide comprehensive support, including installation, configuration, customization, and training, to help you maximize the long-term value of your SAP DRC investment.
KGT is an SAP partner for PE services and an SAP Build partner, and to become an SAP partner, strict due diligence requirements must be met, including having certified SAP consultants. You can find us at: https://partnerfinder.sap.com/profile/0001925409
