In 2005 the OECD released its guidance note, containing a technical description, for the Standard Audit File for Tax (SAF-T). The SAF-T, referred to as “FAIA” – “Fichier d’Audit Informatisé de l’AED”, was introduced in 2009 in Luxembourg as a pilot project, and the first year concerned was 2011. Since then the VAT Authorities have slowly been increasing their request for FAIA files until 2017, when the number of requests increased significantly in conjunction with the 2017 tax reform, which increased the fines for non-compliance.

The FAIA is essentially a standard for exporting accounting, source documents and supporting data in the context of a VAT audit, which has to be provided upon request by the VAT Authorities. The FAIA can either be used as a complement to a paper based audit, or replace it completely.

In the light of this and the 2017 tax reform the need for an up to date accounting system or ERP that supports these requirements, which together with proper procedures, controls and application of VAT codes etc. will help you ensure that you meet the obligations of today as well as tomorrow.