Fiscalization: Why are we changing the current system?

In the case of fiscal laws, every government is essentially following the same philosophy:

• Tax-related data (mainly VAT) for each transaction must be securely stored so that any data manipulation is impossible once the transaction is closed.

• Reporting to the authority on data related to the retained tax must be possible at all times and without any data manipulation.

Based on this philosophy, various governments are establishing different regulations that must be implemented in various areas of the vendor environment.

For example, the fiscal law in Portugal specifies that VAT-related data are regularly sent to the authority. Based on the data, most implementations are carried out in the vendor's ERP system (in the Data Processing Office/Accounting). On the other hand, countries like Serbia, for example, have fiscal laws that require the use of fiscal printers. The fiscal printer is storing the VAT-related data and sending it to the tax authority via the network-connected device. This type of fiscalization is most often applied in POS applications.

In some other countries, such as Austria, for example, transaction data must be signed by a special signing device and the data must be stored in a special log database. Typically, this type of tax law is applied at the POS application and in the back office.

Fiscalization, which together with TVSH introduced with the intention of fighting shadow economy . The first vendor that brought tax law regarding the use of equipment specific fiscal ishte Italy , and the second was Greece . Italy passed this fiscal law in 1983. ^[3] Presentation of Fiscal law especially for cash registers – come from the need to avoid retailer scams. According to the Fiscal law , one invoice appropriate fiscal it must be printed and given clients . ^{[1] [2]}

Different aspects of fiscalization are creating major challenges

The implementation of fiscal laws in a given country is already a complex issue. But if we put it in the context of modern retail, then it becomes an even more sought-after and challenging topic.

As of today, (modern) retail means:

• The retail concepts are mixed. A retailer has several different store formats. CdThe retail industry has several or even many different sales processes, and each retail sales process can be influenced by fiscal law.

• Many different payment methods are used. Payment methods such as cash, cards, vouchers, various coins, etc., are usually treated differently by tax law.

• The world is full of many channels. Transactions can be created anytime, anywhere, and primarily with different systems. For example, with online stores, POS, Apps, etc.

• Marketing fields are very complex. To attract customers, retailers are becoming very creative. They are creating complex promotions with complex discounts. Actions are, in many cases, strongly influenced by fiscal law.

• The retailer is becoming more international. At the same time, they are unifying their processes and technology. However, fiscal law from the country is forcing the use of certain technologies.

The technical implementation of fiscal law is always preceded by one or more of the following technical aspects:

• computer-based fiscal implementation

• Software-based fiscal implementation

• specific fiscal requirements with different applications

Furthermore, the technical implementation itself is also mandated by fiscal law.

Fiscal implementation based on computer hardware

Some fiscal laws stipulate the use of special hardware devices.

These are usually:

• fiscal printer – receipt printer with special fiscal memory where fiscal data is stored
• Fiscal communication modules – these are devices used to send fiscal data to the fiscal authority
• fiscal memory boards – circuit boards that can be included or connected to POS, ECR or printer
• signing device – devices that produce digital signatures used to secure a fiscal transaction

Most fiscal countries in the world today are following the path of hardware-based implementation.

Software-based fiscal implementation

This could be a more modern way of enforcing the law.

The background is that the law specifies how something should be done, but not which device should be used. This model is more liberal, and it can be expected that more countries will follow this approach in the near future.

There are several different scenarios:

• send any transaction to the fiscal authority in real time, obtain the digital signature from the authority, and include it in the transaction.
• to store every transaction in the database, where each entry has a sequence number and a digital signature
• to save data in a special format in the special fiscal journal (database)
• to digitally sign any transaction from a specific algorithm

Special fiscal requirements

In some cases, in addition to these technical implementations, there are some additional technical approaches. The acts mainly concern:

• data security and protection
• archive
• report me

Special business processes (mainly in specialized retail, e.g., gas stations)

place	Lloj	Description
Albania	Hardware	The fiscal law in Albania has been in effect since 2004. The law specifies the mandatory use of fiscal printers and ECRs. In addition, it included: Cash register / fiscal printer Fiscal memory Customer Feedback (Optional) GPRS Device [4]
Austria	Hardware / Software	At the beginning of 2016, Austria introduced a new fiscal law consisting of the creation of a Fiscal Journalist (FJ). A Fiscal Journal must be kept in each POS system, in a central database, or in the cloud. The fiscal receipt, according to Austrian fiscal law, must be created in real time (at the same time as the invoice is generated). In addition to the Fiscal Register, depending on the size of a point of sale, it is also necessary to use a special security chip to digitally sign each transaction (except those from a closed system). [5]
Bosnia and Herzegovina	Hardware	According to the country's fiscal law, every retail store is obliged to record every single transaction on fiscal devices. Communication with the Tax Authority is done via GPRS. [6]
Bulgari	Hardware	In 2018, the new fiscal law was introduced, presenting new regulations related to fiscal devices. Some of the key new requirements include: the USN number generated by the POS program at the start of the transaction, the use of a QR code in the receipt layout, special handling of coupons, special rules for e-shops, etc. There are also several important issues related to the certification process itself. [7]
Croatia	program	Croatia is one of the first countries in the world with this kind of Fiscalization which includes the determination that the relevant fiscal transactions must be sent to the fiscal authority via the internet for authorization. [8]
Czech Republic	program	The next fiscal law will be similar to the Croatian and Slovenian law. It will be introduced in two phases: the first phase takes effect in December 2016 for HORECA and the second phase takes effect in March 2017 for retail. [9]
Germany	Hardware	The fiscal law in Germany means the integration of the security system starting from 01.01.2020. Each POS must use the security system (TSE), and the complete solution along with the POS must be reported and registered with the tax authority. [10]
Hungarian	Hardware	Fiscal regulation is conceived in the use of fiscal devices. However, the entire fiscal solution including the fiscal printer and the POS application must be certified by the authorities. The strict handling of POS software integration with the printer (error handling, mandatory functionalities) is also included in the legally defined requirements. [11]
Black Mountain	Hardware	The cash register record must have a record number which is a unique number entered into memory fiscal cash registers, and serves to identify tax cash registers. Communication with the Tax Authority via GPRS. [12]
Poland	Hardware	Since 2019, Poland has been introducing a new type of fiscalization, which means that relevant fiscal transactions must be sent to the tax authority via the Internet for authorization. Therefore, the main innovation is the introduction of online cash registers. However, standard fiscal printers, whether with paper or electronic copying, as the main fiscal devices, are not yet going away. The plan is for them to gradually withdraw from the market and from practice in general. The mandatory use of online printers depends on the specific industry, as not all taxpayers will have to start using them at the same time within the next two years. [13]
Romanian	Hardware	The last change to the fiscal law regulation dates back to November 2017. According to fiscal legislation, communication and data exchange with ANAF, performed by the fiscal printer, is further specified. For the moment, in practice, there is still no automatic communication with ANAF. [14]
Serbia	Hardware	The fiscal year began in 2004. The data is sent to the tax authority via GPRS. [15]
Slovak Republic	Hardware	The new fiscal law in the Slovak Republic, as a concept of a sub-type of online fiscalization, has been proposed and discussed during 2018. It has brought the new regulation that all cash registers – traditional and virtual – must be converted into new “online cash registers“ (called ”eKasa cash registers“) and connected to the tax authorities. [16]
Slovenia	program	According to fiscal law, it is mandatory to issue every fiscal receipt and use online communication with the tax authority. Slovenia adopted this type of fiscal law at the beginning of 2016, which is very similar to the Croatian law. The new fiscal law is mandatory for all business entities, except for state institutions. [17]

Albania

Albania has been a fiscal country since 2004. From the beginning, it was mandatory to use fiscal printers and ECRs. Over time, fiscal requirements also included the use of EJ and GPRS. As of today, fiscal devices in Albania include:

1. Cash register / fiscal printer
2. Fiscal memory
3. Customer Feedback (Optional)
4. GPRS Device

The fiscal printer has its own clock, so setting the time for day changes must be done by the POS program (twice a year) – there is no automatic setting. All devices must support Latin and Albanian characters. In the case of invoices, the procedure involves a regular fiscal receipt from the fiscal printer, but in addition, a document that was not printed by the fiscal printer itself. Also, the specific criteria for security, uniqueness, and registrations must be met.

Austria

The Austrian Parliament approved a new fiscalization model which came into effect on January 1, 2016. This was the first part of fiscalization, which includes the creation of a Fiscal Journal (FJ) that must be stored at each POS, in a central database, or in the cloud. . The second part of the new law fiscal It is the digital signature of any cash billing, which will be implemented on April 1, 2017. The Austrian fiscal regulation is based on two concepts. The first concept involves the use of a digital signature device for each taking released, and the second with a “closed system” in which independent control of processes and organizations is needed of the company . “Closed system” refers to a company that has more than 30 cash registers . Because there is a difference between these two concepts – the use of a digital signature device and the registration of each POS with a fiscal authority is not mandatory in a “closed system.”. The advantages of a “closed system” are therefore: the signing device, the digital certificate, and the POS registration with the Authority are not necessary. With the new regulations, fiscal law in Austria requires that each POS have a unique number, which must create and maintain fiscal totals (created by adding each cash turnover in observations, encrypted with the AES 256 algorithm). Based on information the transaction, the POS must create a barcode , QR Code ose kodin OCR taking . At the end of each year, the special certificate fiscal It must be printed and kept for the authority and every retailer must keep it for seven years.

Bosnia and Herzegovina

Fiscal law cili was implemented at the end of 2010 in Bosnia and Herzegovina understands the registration of every transactions alone fiscal devices . Communication with the tax administration is done through GPRS .

to Bulgaria

Changes to the fiscal law in Bulgaria, based on the fiscal device from 2006, were made in September 2018. They brought new regulations for fiscal devices that did not exist before:

1. Data exchange with TA (NRA) and certain problematic situations that may occur, in which FD must automatically perform certain actions
2. USN that must be supported not only by POS SW but also by FD
3. QR codes must be printed on all tax invoices, so the fiscal device must support printing QR codes.

All devices must comply with the new regulation and therefore undergo a new Homologation process. The Bulgarian Institute of Metrology is where manufacturers and distributors present their equipment in order to obtain approval for equipment that will be present on the Bulgarian market. Initially, the deadline for the new FD presentation was scheduled for April 1, 2019, but it was extended. The new deadline for the introduction of the FD (which operates with POS SW) is the end of September 2019.

Croatia

The red fiscal in Croatia , as a concept of business regulation and circulation tire, has become a reality since January 1, 2013. Although Italy It was the first country to introduce the law on the use of equipment specific fiscal (which happened in 1983), the Republic of Croatia is one of the first countries in the world with a type Fiscalization which requires that the relevant fiscal transactions be sent to the tax authority through Internet for authorization. The implementation of the new type of fiscalization in the Republic of Croatia was very fast. The technical specification was issued in October 2012, and the new law was implemented only three months later. Manufacturers software They weren't very optimistic about this new concept. Fiscalization , especially due to the short implementation period. By the new law fiscal It debuted on January 1, 2013.

According to the law:

1. I withdraw invoice Must be pressed
2. The VAT return must be sent to the Tax Authority.
3. Communication It is done through an internet connection.
4. The tax authority server returns data such as: the amounts , income taxes , the unique cashier number (OIB), payment information.

Germany

The first fundamental step toward ensuring the immutability of cash register data was the law on protecting digital core registers from manipulation (the so-called "Kassengesetz"), which was enacted at the end of 2016. After this, there were several changes to the law regulating the entire fiscal environment, such as:

1. regulations from 01.01.2017. – all transaction data must be stored in its entirety, chronologically, unchanged (original values), and in a way that prevents data manipulation.,
2. New auditing rules as of January 1, 2018.

All of them must be respected, and they may have an impact on the future integration of the security system. The regulation on the use of the TSE security system, which is the most important regulation, is mandatory as of January 1, 2020. The implementation must be completed by December 31, 2022.

Starting January 1, 2020, every POS must use the security system (TSE), and every POS and TSE must be reported and registered with the tax authority. The TSE, which is the basis of fiscalization, consists of:

1. security module
2. Memory and security
3. interface (API)

The main functionality of TSE is to provide data signing to prevent tampering with the database. This means that each invoice will be equipped with an electronic signature, but the signature itself, as currently understood, will not be printed on the receipt itself.

Not affected by the new fiscal law are:

1. Ticketing systems
2. Accounting Solutions
3. Vending machines
4. ATM machines
5. Taxi solutions
6. Automatic machine
7. Online stores are also excluded from the new rules

Hungary

The general principle of the fiscalization system in Hungary includes the entire solution used in the shop for creating and issuing invoices. The authorities have set the standard of requirements that fully minimizes the possibility of various types of tax fraud that can occur in the checkout environment. Practically, the system means the following:

1. Verification of the entire fiscal solution including the POS software and the fiscal printer with the customer display as a whole,
2. Testing and certification procedures require interaction with fiscal entities in the country,
3. Comprehensive documentation must be provided to the authorities for certification purposes, including documentation describing all functions, methods of use, and types of fiscal and non-fiscal documents, which must be provided in Hungarian,
4. Strict handling of POS software integration with the printer concerning error handling and mandatory functionalities,
5. Transaction data is communicated to the authorities in real-time, automatically, by a communication module attached to the printer, via the GSM network.

During the self-registration of sales, several procedures must be performed, such as:

1. At the end of each document, the existence of the pairing between the POS application and the fiscal printer must be checked.,
2. It should be possible to read the status of the communication module called AEE from the POS application before initiating any transaction and with each item scan.,
3. The printer must log every POS on and off event.,
4. If a feature integrated into the POS application is to have a function to search for and display the version of the POS application used on the operator's screen at any time.

It is important to note the obligation to support 4 coin denominations, which concern the transition process of gradually moving from mandatory and optional acceptance of the local currency called Forint to the Euro. Furthermore, another example of a strict requirement is the fact that the treatment of bottle deposits must be implemented in a predetermined manner, regardless of the nature of the vendor.

Black Mountain

Do cash register There must be a record number, which is a unique number that is entered into memory fiscal cash registers, and serves to identify tax cash registers. The fiscal account, in particular, contains the following information:

1. Taxpayer name and seller name and address
2. GDP Users
3. The amount of tax at the tax rates
4. Total taxes
5. Date, month, year, hour, and minute of release fiscal stimulus

The fiscal invoice is printed in two copies, one of which is issued to the buyer, and the other remains on the control tape. The point of sale is required to print a daily report at the end of the day. A taxpayer working 24 hours a day is required to print a daily report once within the 24 hours. Taxpayer Is obliged to keep the daily reports printed in chronological order in the daily report book. The daily report book is kept separately for each chest .

Poland

Fiscalization was first introduced in Poland in 1993. As a type of hardware fiscalization, it was based on the use of two types of fiscal devices (fiscal printer and electronic cash registers). Both electronic and literary magazines were read.

The latest fiscalization changes occurred during the first half of 2018. One of the main innovations is the introduction of online cash registers – devices that send data on registered sales to the information system maintained by the National Tax Administration. As with other online fiscalization systems, the communication feature with the authorities is required for the analytical and control purposes necessary for the state. However, with the law changes, the currently available fiscal printers, as the main fiscal devices, will still not be obsolete. The plan is for them to gradually withdraw from the market and from practice in general. The online money ledger itself does not automatically obligate the replacement of old equipment with new. At least, not right now, and not for all taxpayers at the same time. The target industrial frameworks are as follows:

1. January 1, 2020 for fuel sales, vehicle repair, and vulcanization services;
2. July 1, 2020 for the hotel industry, short-term accommodation services, coal sales;
3. January 1, 2021, for the construction industry, hair services, medical services provided by doctors and dentists, legal services.

In addition to the online registration of sales, there are also several regulations that refer to the presentation of certificates. For example, the title will have a defined and structured urban plan; What QR code should be printable for each tax invoice; The list of possible payment methods to register from the printer, etc. has been expanded.

Romania

Romania has been a fiscal country since 1999. The type of fiscalization is hardware-based, and the main innovations related to the latest law changes from November are:

1. Communication and data exchange with ANAF
2. Electronic magazine (not a newspaper)
3. Data refresh
4. New data on the admission process
5. More information about the article
6. Verified invoice with customer data and customer tax ID (CIF)
7. Additional VAT Regulations
8. Additional payment types

This implies the introduction of new specifications for communication and data exchange between ANAF (National Fiscal Administration Agency) and the fiscal printer. The new fiscal device includes 2 additional VAT rates (G and H), but they are not currently in use. The complete solution in Romania must go through a very complex certification process before use in stores. Fiscal certification in Romania includes two steps:

1. Obtaining technical certification at ICI
2. Obtaining Approval for Distribution from the Ministry of Finance.

Serbia

The fiscal law in Serbia is similar to Bosnia and Herzegovina and Montenegro. Serbia was the first country to introduce GPRS in tax law . All relevant data is sent to the Serbian Tax Administration via GPRS.

the Slovak Republic

The new fiscal law in the Slovak Republic has been proposed and discussed during 2018. It requires all cash registers – classic and virtual – to be converted into new “cash registers” (called “eKasa” cash registers) and connected to the tax authorities. In other words, all cash registers must have internet access, allowing all transactions to be immediately transmitted to the financial administration and every invoice issued to be recorded in central memory. Next, one of the main challenges faced by vendors is PDS – a repository that ensures a one-time, permanent entry of data. The PDS course, in addition to cash receipts, invalid invoices, deposits, and withdrawals, other documents that are printed or sent via the online cash register (e.g., orders, delivery notes, prepaid accounts, etc.).

All retailers can comply with this new law by April 1, 2019, or must do so by July 1, 2019. If they are obligated for the first time to register sales according to the new law, they are required to use the e-cashier system starting April 1, 2019. However, penalties will not be imposed for not using online devices until December 31, 2019, as long as the code for each individual cash register has been obtained in time by the authorities, and this is July 1, 2019.

Slovenia

Taxation in Slovenia is similar to Croatia. At the beginning of 2016, a new law was adopted in Slovenia, which includes the provision that every transaction must be sent to the fiscal authorities for authorization through Internet . The Slovenian fiscal law requires online authorization of every significant fiscal transaction, recorded in a system Point of Sale . This means that business entities that are required to operate under the new fiscal law are not required to change equipment. hardware ose të përdorin disa device special fiscal because, as stated, fiscalization is based on online authorization.