Fiscal memory device

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Fiscal memory devices are electronic devices used for control of a country's tax revenues.[1] Currently they are widely used in many countries around the world, including Russia, Bulgaria, Serbia, Romania, Republic of Macedonia, Albania, Poland, Moldova, Bosnia and Herzegovina, Kazakhstan, Armenia, Georgia, Kenya, Tanzania, Malawi and Ethiopia. Fiscal memory devices have following categories:[2]

  1. electronic cash registers, fiscal cash registers
  2. printers, fiscal printers
  3. E-Signs, Electronic signature devices

both of which contain fiscal memory.[3] and Electronic Journal (EJ), Fiscal memory itself is a kind of memory that is certified by appropriate government body. This Encrypted module is usually in the form of an IC on the Electronic circuit.[4] Electronic journal, is a kind of encrypted memory module which is readable using the fiscal device (ETR,FP). These memory modules are the normal SD and MicroSD cards but in an encrypted format which can not be read like normal formats on a personal computer. Once this Electronic Journal is initialized in a fiscal device, it is assigned a fiscal serial number so as to assure it is not reused in another fiscal device.

Countries affected by fiscal memory devices requirements[edit]

Country Name[5] More Info
Albania
Argentina
Austria Austria indroduced new regulations at the beginning of 2016 which included creation of Fiscal Journal which have to be saved at POS, central database or in Cloud. That is just first part of new updates, second part is expecting in 2017. Second part will include the digital signature of every receipt. There are two concepts according to the Austrian law: 1. Usage of digital signature of every issued receipt 2. Closed system which includes Retailers which have more than 30 cash registers and they are not obliged to use any signature device or to register every POS system, but Retailers in closed system need to have a special certificate from government.[6]
Bangladesh
Bosnia and Herzegovina At the end of 2008 fiscalization came into effect, but implementation started two years later. The end of 2010 was reserved for fiscal start. All selling places are obliged to record every single turnover over fiscal devices, despite of way of paying. All taxpayers have to create and print daily reports at the end of working days, and also have to do that with periodical reports.[7]
Brazil
Bulgaria
Canada Quebec only. Restaurant industry only.[8]
Croatia Cloud-based, software only solution.[9] Republic of Croatia is one of the first countries in the world with type of fiscalization which includes that every transaction created at POS system has to be sent to the fiscal authority through Internet for authorization. This type of fiscalization is in force since 1 January 2013. With each transaction tax relevant information have to be sent to the Fiscal authority and central server returns certain identification keys, which have to be printed on every receipt. Information which are sent to Tax Administration include amounts, income taxes, cashier unique number (OIB), payments information, etc. When there is no Internet connection, each account has to be printed but reauthorization has to be performed after, for a period of 48 hours. Benefits of this type of fiscalization are reflected in increase of tax income, number of issued receipts, increase of VAT companies and better control of working time. Software fiscalization has advantages for Retailers because it does not require new hardware equipment and hardware maintenance.[10]
Chile
Czech Republic New fiscal law is expected at the beginning of March 2017. Upcoming fiscal law will be similar to Croatian and Slovenian law.[11]
Ethiopia
Gambia
Greece
Hungary
Italy
Kenya
Latvia[12]
Lithuania
Malta
Montenegro Fiscalization was adopted in 2001. Each fiscal device must have record number which is a unique number that is entered in the fiscal memory of the fiscal cash registers, and serves to identify the tax cash registers.[13]
Russia Beginning from a mid-2017 a certified cash desk and certified secure storage with internet connectivity required for the regular and Online shopping. Cash desk are able to issue electronic documents containing transaction data, archive these transactions locally on certified secure storage, and report them real-time (or no more than 30 days delay) to the Federal Tax Administration via a certified Fiscal Data Operator.[14]
Serbia First country which introduced fiscal law with GPRS fiscal terminal. GRPS fiscal terminal reads data from fiscal memory and sends it to Tax Authority. Serbia introduced this type of fiscalization in 2004.[15]
Slovakia Fiscalization started in 2008. Each fiscal device has to be certified / registered by government. Most of the fiscal memories are in the modules attached to printers and can operate offline. There is also online possibility through government website.
Slovenia Cloud-based, software only solution. New fiscal law has been present in Slovenia since 2016 and it includes mandatory use of fiscal cash registers. Fiscalization in Slovenia is based on online authorization of every fiscal relevant transaction created at POS which communicate with Slovenian Tax Authority and collects code. That code and QR code are printed on every receipt. In case there is no Internet connection selling places do not stop to work but they have 72 hours to authorize every fiscal receipt.[16]
Sweden
Tanzania
Panama Hardware-based.[17]
Poland
Romania
Rwanda
Venezuela

Distribution of fiscal memory devices[edit]

The use of fiscal devices in the world can be divided into three main categories:

  1. Offline operating electronic fiscal devices with built-in fiscal memory (so called first generation fiscal devices);
  2. Electronic fiscal devices with Internet connection capabilities to the revenue authority central server (so called second generation fiscal devices);
  3. Electronic fiscal devices with Internet connection capabilities and latest use of various encryption methods for digital signing of each issued receipt (third generation fiscal devices).

Due to the main disadvantages which the first generation fiscal devices are having i.e. easy manipulation, lack of control from the tax office, no printing of fiscal receipts etc., the second generation fiscal devices are becoming more and more popular and many countries are changing their fiscal requirements and moving to Internet enabled fiscal devices (mostly using GPRS network) and implementing the so-called online Information and Tax Collection System.[18]

Such kind of second generation fiscal devices are eliminating most of the problems which their predecessors were having. All fiscal cash registers and fiscal printers are connected online through the Internet to the central server and sending their reports and/or fiscal receipts in predefined time intervals. However these devices still have some black holes which are used by the majority of tax payers who are cheating and not paying their taxes. Such are: printing of fake fiscal receipts, manipulation of daily reports before they are sent to the tax office etc.

This is why the third generation fiscal devices were introduced and running successfully currently in several countries in the world. Devices of this kind are very similar to the second generation devices but an additional software security is used for digital signing of every fiscal receipt. The third generation fiscal devices are eliminating all previously known issues and giving additional security to all tax agencies which are using such systems. Each fiscal receipt is digitally signed using unique signature printed either in the form of a 2D Bar Code or various characters depending on encryption rules in place. The tax administration can easily and quickly check if the issued receipt is authentic and correct.

References[edit]

  1. ^ "Fiscal Cash Registers and POS Systems - Quorion Data Systems". Quorion.de. Retrieved 2011-03-25. 
  2. ^ "Ministarstvo finansija - Vlada republike Srbije - online". Mfin.gov.rs. 2004-12-21. Retrieved 2011-03-25. 
  3. ^ "Republička agencija za razvoj malih i srednjih preduzeća i preduzetništva". Narr.gov.rs. Archived from the original on 2010-12-16. Retrieved 2011-03-25. 
  4. ^ "Ei Informatika". Eierc.com. Retrieved 2011-03-25. 
  5. ^ Post (2012-10-21). "Technical aspects of the fiscalization in Croatia". Slideshare.net. Retrieved 2018-02-20. 
  6. ^ "Austria". Fiscal Solutions. 2014-06-20. Retrieved 2018-02-20. 
  7. ^ "Bosnia and Herzegovina". Fiscal Solutions. 2014-06-20. Retrieved 2018-02-20. 
  8. ^ https://www.ctf.ca/ctfweb/Documents/PDF/2009ctj/09ctj4-ainsworth.pdf
  9. ^ "Fiscalization in Croatia - Questions & Answers". Fiscalization.hr. 2012-08-28. Retrieved 2018-02-20. 
  10. ^ "Croatia". Fiscal Solutions. 2013-01-01. Retrieved 2018-02-20. 
  11. ^ "Solution S4Retail Fiscal for online fiscalisation". Fiscal Solutions. 2014-06-20. Retrieved 2018-02-20. 
  12. ^ "Noteikumi par nodokļu un citu maksājumu reģistrēšanas elektronisko ierīču un iekārtu tehniskajām prasībām". Likumi.lv. Retrieved 2018-02-20. 
  13. ^ "Montenegro". Fiscal Solutions. 2014-06-20. Retrieved 2018-02-20. 
  14. ^ "PwC: New rules for using cash register equipment" (PDF). Retrieved 2018-02-20. 
  15. ^ "Serbia". Fiscal Solutions. 2014-06-20. Retrieved 2018-02-20. 
  16. ^ "Slovenia". Fiscal Solutions. 2013-01-01. Retrieved 2018-02-20. 
  17. ^ "Insights | KPMG | GLOBAL". KPMG. 2018-02-07. Retrieved 2018-02-20. 
  18. ^ http://www.rs.ge/Default.aspx?sec_id=5358&lang=2 Revenue Service, Republic of Georgia