Vadym Lozytskyi ,
Auditor at AF “AUDIT-INVEST”
The world is rapidly moving into a digital virtual space. In Ukrainian business and financial discourse, terms like SAF-T and iXBRL Taxonomy have become commonplace. Here is a brief overview of what they are, along with their main similarities and differences.
Table of Contents
SAF-T (Standard Audit File for Tax)
SAF-T (Standard Audit File for Tax) — is an international standard for the electronic exchange of accounting data in a unified XML format. It simplifies the submission of information to tax authorities and auditors during inspections. Ukraine is implementing this as SAF-T UA to automate electronic audits (e-audits), increase transparency, and reduce physical business inspections.
The standard was developed by the Organisation for Economic Co-operation and Development (OECD) in 2005. Typically, it is an XML file containing extracts from accounting and tax registers for a specific period. The goal of the standard is to simplify tax audits, automate control, and reduce compliance costs.
SAF-T (e-audit) is already officially in effect in Ukraine, but not yet for everyone. Its implementation follows a phased approach according to the Tax Code:
- For large taxpayers: Since January 1, 2025, submitting the SAF-T UA file has been mandatory upon the tax authority’s request during an audit.
- For all taxpayers: A gradual expansion to other business categories is expected throughout 2026–2027.
The localized version, SAF-T UA, includes data on business operations, accounting, assets, tax liabilities, and other performance indicators.
Business Benefits: Fewer requests for paper copies; faster tax audits; and the ability to independently verify data using specialized software before submission.
Regulatory Framework for SAF-T UA
- Tax Code of Ukraine (TCU): Paragraph 85.2 of Article 85 obligates large taxpayers to provide electronic copies of accounting documents upon request.
- Ministry of Finance: Decree № 561 dated 15.09.2020 established the general principles of e-audit and the technical requirements for the SAF-T UA file.
- State Tax Service (STS): Publishes and updates XSD schemas and technical descriptions.
Instead of submitting the file only upon request during an audit, the draft law proposed making SAF-T UA a regular annual reporting form for large taxpayers and all VAT payers (starting from 2027). Taxpayers would have been required to submit the file within 60 calendar days after the end of the reporting year.
The proposal included the introduction of a new article to the Tax Code (Art. 119-2), establishing penalties for non-submission or submission with errors:
- 100 minimum wages for large taxpayers;
- 10 minimum wages for other VAT payers.
The draft law also requires enterprises submitting e-reporting to maintain accounting registers exclusively in electronic form.
As of 2026, the electronic audit system has officially become fully operational. The State Tax Service (STS) now utilizes SAF-T UA as the primary data source for the automated verification of high-risk operations within large businesses. Although Draft Law No. 6255 was withdrawn from consideration, the STS of Ukraine launched a full-scale e-audit system on January 1, 2026. Currently, the obligation to submit SAF-T UA remains relevant primarily for large taxpayers upon the request of the supervisory authority within 2 working days. It is expected that legislative initiatives regarding automation and penalties will be reintroduced to the Verkhovna Rada in a new edition.
This is an international standard for the electronic exchange of accounting data in a unified XML format, designed to simplify the submission of information to tax authorities and auditors during inspections. Ukraine is implementing this as SAF-T UA to automate electronic audits.
iXBRL (Inline eXtensible Business Reporting Language)
iXBRL (Inline eXtensible Business Reporting Language) — is a global electronic reporting standard that merges a human-readable document format (which looks like a standard HTML report or PDF) with machine-readable
Financial Reporting Taxonomy in XBRL format is an electronic file that defines the procedure for displaying financial reporting data using the principles of eXtensible Business Reporting Language (XBRL) based on the international standards financial reporting taxonomy.
Taxonomy and iXBRL are two interconnected elements of a single electronic reporting system. To put it simply:
- Taxonomy is an electronic directory of all possible indicators. It is not the report file itself, but a set of rules and labels.
- iXBRL is the technology that takes data from your accounting records, “labels” them with tags from the taxonomy, and packages everything into a user-friendly format.
Taxonomy is “what” we write (the dictionary), while iXBRL is “how” we transmit it (the file format). The main difference is that taxonomy is a dictionary of terms, while iXBRL is the container in which these terms are delivered.
Dual readability is achieved because a single iXBRL file can be viewed in a standard web browser as a visually appealing report, while computer programs and analytical tools can automatically extract structured data from it.
Specific financial indicators (Assets, Revenue, etc.) are marked with special tags that define their meaning in accordance with international standards (for example, the IFRS Taxonomy). The use of harmonized taxonomies ensures transparency and accuracy, and simplifies the comparative analysis of financial information across different companies and countries.
Globally, iXBRL is the standard for digital corporate reporting. It is mandatory for listed companies throughout the European Union and is also used by tax authorities and regulators in the US, UK, Japan, and many other countries. In Ukraine, submitting financial statements in iXBRL format based on the UA XBRL IFRS taxonomy is mandatory for enterprises and organizations that prepare financial statements under IFRS, particularly for public interest entities (large enterprises, banks, insurers, securities issuers, etc.). Reporting is submitted through the Financial Reporting System (FRS).
Who is Obligated to Report in iXBRL Format (as of 2026):
Public interest entities, including large enterprises, banks, insurers, and securities issuers;
- Extractive industry enterprises;
- State-owned enterprises (where the state share exceeds 50%);
- Other enterprises and organizations that have voluntarily chosen to apply IFRS.
Advantages of Submitting Reports in iXBRL Format:
For Business: Simplifies the reporting process (one file instead of two), reduces the risk of errors, and accelerates internal analysis.
- For Investors and Analysts: Provides easy access to standardized, high-quality data, facilitating analysis and investment decision-making.
- For Regulators: Automates the collection, processing, and verification of large volumes of financial data, helping to identify inconsistencies and potential violations.
Regulatory Framework in Ukraine:
The implementation and functioning of the iXBRL format taxonomy in Ukraine is regulated by a complex of legal acts:
- Law of Ukraine “On Accounting and Financial Reporting in Ukraine” (Art. 11, par. 6): This norm directly establishes the obligation for IFRS-reporting entities to prepare and submit financial statements based on the financial reporting taxonomy in electronic format.
- NSSMC (National Securities and Stock Market Commission): Resolution dated 06.06.2025 № 36/21/2383/K03 approved the requirements for disclosing financial reporting indicators in XBRL format for capital market participants. Since November 1, 2025, the option to submit IFRS reports in XML format has been cancelled — now only XBRL/iXBRL is mandatory.
- Ministry of Finance of Ukraine: Approves the updated UA IFRS XBRL taxonomy (as of 2026, the 2024 taxonomy is current for interim reporting for 2025 and earlier), which defines the composition of items and the logic of electronic report formation.
- Technical Aspects: Reporting is submitted through the “Single Window” — a specialized portal of the Financial Reporting Collection Center (frs.gov.ua), operating on the basis of joint orders of the Ministry of Finance, the NBU, and the NSSMC.
Comparison of SAF-T and iXBRL
| Characteristic | Description of Shared Trait |
|---|---|
| Technological Base | Both standards are based on the XML markup language, ensuring data structure. |
| Machine-Readability | Data is automatically read by the controllers’ software without the need for manual entry. |
| Objective | Transition to Electronic Audit (E-audit) and automation of reporting verification. |
| Unification | Use of unified international standards, which facilitates data exchange and comparison. |
| Error Reduction | Minimizing the human factor thanks to automatic data export from accounting systems (ERP). |
| Reporting Entities | Mandatory primarily for large taxpayers and public interest entities. |
| Submission Method | Exclusively in electronic form via secure communication channels or specialized portals. |
Key Differences Between SAF-T and iXBRL
| Parameter | SAF-T UA (Standard Audit File – Tax) | iXBRL (inline XBRL) |
|---|---|---|
| Purpose | E-audit: Detailed verification of tax liabilities and transactions. | Financial Reporting: Transparent presentation of financial position and performance under IFRS. |
| Level of Detail | Maximum: Contains a full register of business transactions, accounting entries, and account ledgers. | Aggregated: Contains summary indicators of financial statements (Balance Sheet, P&L, Cash Flow, Notes, etc.). |
| Recipient | State Tax Service of Ukraine (STS). | Market Regulators (NSSMC, NBU, State Statistics Service) via the Financial Reporting Center. |
| File Format | Pure XML: A technical file intended solely for automated processing by the tax system. | HTML with XBRL tags: Visually looks like a standard document that can be opened in a browser. |
| Frequency | Submitted once a year (for large payers) or upon request during an audit. | Submitted annually and quarterly according to the financial reporting schedule. |
| Legal Framework | Tax Code of Ukraine (Article 180, etc.) and the National Revenue Strategy. | Law of Ukraine “On Accounting and Financial Reporting in Ukraine.” |
Summary:
SAF-T UA is the “digital access” for tax authorities to an enterprise’s accounting records to search for tax errors without an office visit.
iXBRL is the “digital business card” of an enterprise for investors and the state, confirming that financial statements comply with international standards.
Interested in Financial Reporting in the UA iXBRL IFRS Taxonomy Format?Audit Invest is ready to provide qualified assistance with the preparation, verification, and submission of reports, as well as consult on current regulatory issues.
