Knowledge base
Here is an overview of several countries’ fiscalisation requirements and VMS technologies. Click the “+” sign to expand each section.
In Austria, fiscalisation primarily focuses on identifying the receipt and the business that issued it by using a ‘Receipt Signature,’ which is printed on the receipt as a QR code. By scanning the QR code, the transaction details and business information can be reviewed, enabling tax audits and facilitating the comparison of tax reports with sales activities.
Fiscalization device:
There are two approaches in Austria for POS system fiscalization:
OPEN system: Suitable for businesses with over 30 POS terminals. There are no devices implemented, but the entire POS infrastructure has to go through an annual audit. The OPEN system does not print the Receipt Signature on the receipt.
CLOSED system: This is the more prevalent solution, which uses a USB dongle for fiscalization. The device consists of a Certificate and a Certificate Reader, which together form a USB dongle plugged into one of the USB sockets in the POS terminal. The device combines information from the transactions and prints a QR code through the POS application at the bottom of the receipt for identification purposes.
We will discuss the CLOSED system in this description.
There is no need for an online connection for fiscalization, and no data is transferred from the business to the authorities. There is no need to label the devices with visual identification.
Process of activation:
First, the business needs to register the USB dongle at the ‘FinanzOnline.at’ (FON) portal for the business site. Then, the dongle is plugged into the POS terminal and paired with it; the pairing can be achieved either by using the ‘BelegCheck’ application or, if available, through a registration interface in the POS application. At the end of the activation process, a ‘Start Receipt’ must be printed and retained in the business files. The USB dongle needs to be replaced and reactivated every five years.
In case of failure:
If the USB dongle fails to operate or is unplugged, a notification will be printed on the receipt, and the QR code will not be generated. Many modern POS systems will display an alert on the POS terminal’s screen or even suspend transaction processing.
If the entire POS system becomes inoperable, manual receipts can be used. After restoring the operation, the manual receipts will need to be entered into the POS system. If the fault persists for more than 48 hours, it has to be reported on the FinanzOnline.at portal, just like when it is fixed.
In Germany, fiscalisation primarily focuses on identifying the receipt and the business that issued it by using a ‘Receipt Signature,’ which is printed on the receipt as a QR code. By scanning the QR code, the transaction details and business information can be reviewed, enabling tax audits and facilitating the comparison of tax reports with sales activities.
Fiscalization device:
There are hardware, cloud, and hybrid solutions available for the fiscalization of the POS system, which involve using either a flash drive or connecting the POS system to a fiscalization cloud service, or a combination of both. These solutions are collectively referred to as Technical Security Equipment (TSE). The USB dongle incurs a one-time purchase cost and is more suitable for small businesses. At the same time, the cloud service provides greater data storage and reporting security and is suitable for retail chains with multiple store locations. The USB dongle needs to be replaced every 5 years, which results in a cost range similar to using a cloud service, excluding the cost of the internet connection which is required in the latter case.
Fiscalization involves printing QR codes, commonly known as ‘KassenSichV-Code’, at the bottom of receipts to trace sales transactions. The QR code contains encrypted information about the transaction and the issuing business, serving as a unique identifier for the fiscal receipt. However, even in the case of a cloud solution, no transaction data is transferred to the German Tax Office.
There is no need to label the devices with visual identification; however, the use of the KassenSichV-Code is required in case of email invoices as well.
This chart shows a cloud-based solution where the integrated POS application uses API key and license file for connecting the Cloud-TSE service.
Process of activation:
Activation requires pairing the TSE with the POS application, typically through a menu point available in the application. It involves using credentials provided with the TSE, such as API keys and license codes, which must be entered in the corresponding form and copied to respective folders. Once activation is complete, a QR code will be printed at the bottom of every fiscal receipt. The use of TSE must be reported to the regional Tax Office within one month following activation.
In case of failure:
If the TSE fails to operate, an error message will be displayed in place of the QR code (‘TSE ausgefallen’ – ‘Technical Security Device has Failed‘), and most modern POS applications will also display a notification on the terminal’s screen. While efforts should be made to restore normal operation as soon as possible, there is no specific deadline or penalty imposed.
In Colombia receipt printing fiscalization relies on ‘e-Invoices’, which are reported to the Colombian Tax Office, known as DIAN, to ensure the traceability of all business transactions. The core concept of ‘e-Invoicing’ revolves around issuing invoices and receipts in a verified and digitally signed XML format, which are then registered in DIAN’s database and can be shared with customers digitally.
e-Invoice FiscalizationDIAN’s e-invoicing platform, called RADIAN, accepts, registers, and retains electronic invoices for reporting purposes. Various methods are available for processing these reports:DIAN Free Billing service: This is a free online application that allows any registered user to issue invoices by logging in to DIAN’s portal.Own software: Businesses have the option to use their own software to generate electronic invoices. DIAN provides documentation and invoice examples for developing and integrating the software with RADIAN.Technology Provider: Businesses can choose to contract report processing with an authorized Technology Provider. These providers collect, validate, and certify electronic invoices before forwarding them to the RADIAN platform.This document will focus on the ‘Technology Provider’ option, which is the primary choice for most retailers for e-Invoice reporting.The Process of Reporting
Before printing a receipt, the reports need to undergo processing, including converting them to XML format and transferring them to the chosen Technology Provider for validation. These reports should be digitally signed using a digital signature obtained from suppliers authorized by ONAC, the Colombian National Accreditation Body. Upon approval, the Technology Provider shares the report with DIAN through the RADIAN portal, and in return, an e-Invoice Unique Identification Code (‘CUFE’) is provided.The receipts also require ‘Invoice Numbers,’ which are furnished by DIAN through an ‘invoice number range registration process.’ After reserving the ‘Invoice Number Range’ on DIAN’s portal for each till, these numbers should be recorded in the POS System’s (ERP) database. The POS System then retrieves a new number for each receipt, printing it on it alongside the CUFE Code, which should have been received through the Technology Provider in the meantime for the completion of the process.
The ‘Invoice Number Ranges’ come with an expiry date (6 months to 24 months), requiring regular updates in the database. This also means that each receipt must display both an ‘Invoice Number’ and a ‘CUFE code’ to ensure document compliance and formality.For a sample of a certified e-Invoice, click on this LINK. Operational AspectsIf ‘Electronic Invoices’ cannot be issued due to technical problems, manual (‘contingency’) invoices and receipts may be used. Once the normal operation is restored, the manual invoices and receipts need to be recorded in the POS System to transmit them in digitally signed XML format to DIAN. The Business has 48 hours to complete the reporting after the failure has been resolved. All documents need to be archived for 5 years from the year following the one in which the transaction occurred.
In Fiji, fiscalisation is based on TaxCore’s VAT Monitoring System (VMS) and primarily focuses on the reporting of each transaction using a ‘Sales Data Controller’ (SDC). The SDC can be either an external hardware element (E-SDC), known as the ‘Black Box,’ which is a physical device connecting to the Point of Sale (POS) terminal via the local ethernet network, or a software application running in the background on the POS terminal.
The goal of the SDC is to ‘fiscalise’ each transaction initiated by the POS terminal. This involves analysing transaction data for VAT calculation, digitally signing the transaction, returning a QR code to the POS terminal for printing on the receipt to identify it, and reporting the transaction to the Fiji Revenue and Customs Service (FRCS).
For the POS terminal to work with the SDC, it must be accredited, which involves integration and administrative tasks. A key aspect of fiscalisation is the use of a ‘Secure Element’ for signing transactions. In the case of a Black Box, this is typically a physical Secure Card with a special chip containing the business’s digital signature. Alternatively, a Digital Certificate, which is a file, is often used with software-based SDCs.
A third method for fiscalisation is the ‘Virtual SDC,’ an online service of the FRCS that allows the POS terminal to report transactions instantly over the internet. However, local hardware or software-based SDCs offer the security of performing transactions even without an internet connection, which is not possible with the Virtual SDC. Consequently, business operations may be halted if the internet is interrupted when using the Virtual SDC.
An important step in transaction reporting to FRCS is the ‘Audit,’ which confirms that all transaction data have been reported. For hardware or software-based SDCs, where fiscalisation occurs locally, there is a volume limit on how many transactions can be performed without being reported (or ‘audited’) over the internet. If this threshold is reached, the SDC does not allow further transactions. If there is no internet availability, the Audit can be performed manually, but this is a tedious process, and internet use for reporting is recommended.
TaxCore’s VMS is an ‘off-the-shelf’ solution and has been used in other countries with similar principles. A substantial advantage of the TaxCore VMS is its capability to fiscalise invoices, including those issued through eCommerce and ERP platforms, allowing more businesses to contribute to report VAT to the authorities.
In Hungary, fiscalization primarily focuses on the instant reporting of transactions to the Hungarian Tax Office using a Fiscalised Point of Sale (POS) Printer. A unique feature of the Hungarian system is the utilization of GPRS data transfer for instant reporting of each sale, enabling ad-hoc tax investigations within the store – tax inspectors have the opportunity to discreetly verify the issuance of fiscal receipts by monitoring online reports during business operations.
There are two approaches to fiscalising a POS system:
In the first case, the entire POS system, including the POS printer, POS terminal, scanner, etc., are treated as a single fiscalized unit. This limits the ability to exchange components without re-fiscalising the entire system, for example, if the POS terminal becomes obsolete for new orders.
In the second case, a Middleware Application is used, certified in a bundle with the Fiscalized POS Printer and a customer display. This approach allows for the replacement of other components as needed.
This document will also cover the second option, which has gained prominence in the market due to its flexibility.
Fiscalization device:
The Hungarian fiscalization system utilizes a fiscalized Point of Sale (POS) printer that incorporates a Fiscal Control Unit (FCU). The FCU’s primary function is to collect, store, and transmit transaction data to the Hungarian Tax Office, which is broadcasted via a GPRS-mobile connection. This connection is facilitated by a SIM card soldered onto the FCU’s electronic board, which requires selecting and signing up with a mobile internet provider for the mobile internet service, incurring monthly charges for the service as well. Consequently, there is no need for cable internet availability in the store for the fiscalized POS printer.
A receipt is considered fiscalized if it includes a ‘Personalisation code’, also called the ‘AP’ number at the bottom, which serves as an identification number for the fiscalized POS printer that created it. Additionally, the fiscalized receipt printer must undergo inspections annually. The printer is sealed and has a visual identification number (the AP number) labelled on it
This chart shows a Middleware-based solution where the POS application connects to the fiscalised POS printer through a Middleware application that runs in the background.
As part of the daily process, Start-of-Day and End-of-Day reports are generated. There should be no more than a 25.5-hour difference between them, otherwise, the FCU may stop working, and the intervention of a certified technician may be required.
Process of activation:
Activating the Fiscal Control Unit (FCU) involves uploading a ‘Personalisation Code’ into its memory, which is performed by the FCU supplier. To obtain the ‘Personalisation Code,’ a so-called ‘PTGREG’ form must be submitted to the Hungarian Tax Office, which will provide the Code within a few days in a response email. The Code, along with the chosen GPRS provider’s name, needs to be shared with the FCU supplier for the activation of the FCU. Additionally, a Middleware application will also need to be installed on the POS terminal which will drive the FCU, and therefore the printer. After completing the activation, a Cash Register’s Book will be provided for the fiscalized printer, which must be kept in the store together with the device.
In case of failure:
If the POS system suddenly stops and remains inoperable, manual receipts should be issued to ensure the business continues until normal operation is restored. The failure of the fiscalized POS printer should be recorded in the Cash Register’s Book, including information about repairs and regular maintenance. Once the POS system and fiscal receipt printing are back to normal, the total value of the receipts issued during the downtime must be entered into the POS system along with issuing the corresponding fiscalised receipts.
In Italy, fiscalization primarily focuses on broadcasting daily transaction reports. Additionally, fiscal receipts are identified by printing a so-called ‘Electronic Journal number’ (EJ) on each of them, marked with the letters ‘RT’. This enables the identification of the printer and, consequently, the business that printed the receipt.
Fiscalization device:
The fiscalization is based on recording daily transaction data into an XML file using a special electronic device called the ‘Telematic Register’ (RT), which is incorporated into a Point of Sale (POS) printer. As part of the End-of-Day (EoD) process, the RT transmits the electronically signed XML files, known as ‘Electronic Receipts’, via the internet to the servers of the Italian Revenue Office. The RT is assigned the Electronic Journal number (EJ), which makes it simple to link the receipts with the fiscalized POS printer and identify the business that printed them.
The printer is sealed and has a visual identification in the form of a QR code. Scanning this QR code (e.g., with a mobile phone) provides information about the printer and the associated business. Internet availability is necessary for the store.
This chart shows the structure of the Italian Point of Sale (POS) System fiscalisation where the POS application connects to a Telematic Register (RT) that is incorporated into a POS printer.
Process of activation:
The Telematic Register (RT) is activated by its supplier who registers the Retail Company’s business details with the fiscalized printer in the Italian Revenue Office’s database. The Retail Company then needs to download an identification QR code for the fiscalized device and affix it on the printer as proof of activation. The QR code can be obtained from the ‘agenziaentrate.gov.it’ portal using business credentials and the fiscalized printer’s serial number.
In case of failure:
Depending on the success of the End-of-Day (EoD) report broadcast via the internet to the Italian Revenue Office’s servers, the printer will either print a confirmation or an alert receipt. In the event of internet connectivity issues, the Retail Company has 12 days to resolve them and complete the data transfer. During this period, the business may continue to operate as all EoD reports will be queued for transfer. However, if receipt printing is not possible, the Company must suspend operations as issuing manual receipts is not allowed.
The End-of-Day process must be performed once every 24 hours to ensure the uninterrupted operation of the fiscalized printer. Failure to do so may result in the printer ceasing to operate, in which case a special emergency keypad will be required to re-enable printing.
The Mexican fiscalization system utilizes ‘e-Invoicing’ to record transaction data for tax reporting in various ways, including using the free online invoicing tool provided by the Mexican Tax Authority (SAT). However, this article focuses on the standard retail environment where POS systems are employed for printing receipts.
The e-Invoice fiscalization in Mexico
The reporting process in Mexico involves the use of the Digital Tax Receipt by Internet (known as ‘Comprobantes Fiscal Digital por Internet’ or CFDI), a structured XML file to declare tax documents. It serves as a digital tax receipt containing all vital business transaction details. The CFDI acts as the digital equivalent of paper receipts and must comply with specific content and format requirements.
Each receipt must be verified for compliance either by the SAT or an Authorized Certification Provider (Proveedor Autorizado de Certificación or PAC). They digitally sign the XML file of the transaction and convert it into a digital document. This digital document is then relayed back to the POS system, where it can be printed to create the fiscalized receipt.
Applying for fiscalization
To issue an e-Invoice, the business needs to go through a registration process and establish data transfer with a selected PAC. The general steps are as follows:
Obtaining a Federal Registration for Taxpayers (Registro Federal de Contribuyentes – RFC) and registering with SAT to enable the issuance of electronic invoices.
Obtaining an electronic signature key (Firma Electrónica Avanzada – FIEL or e.Firma) from SAT, which includes a private key and a public certificate. This signature is used to encrypt the XML, ensuring its integrity.
Applying to SAT for a unique Digital Stamp (Certificado de Sello Digital – CSD).
Appointing a government-approved, third-party PAC to validate invoices with the digital stamp, and notifying SAT of this PAC appointment.
Setting up transaction reporting in accordance with the PAC’s guidance. This usually can be achieved by using Middleware or running scripts in the POS System’s database to export transaction data to a designated folder, from which the PAC’s service can retrieve the data for processing it.
Process of issuing a fiscalized receipt
The following steps should be followed for processing e-Invoicing reporting:
An XML file containing the transaction’s information is generated by the POS systems and is digitally signed with the ‘CSD’ signature, while also being encrypted to generate the Original String (‘Cadena Original del XML’).
The signed XML file is then transmitted to the PAC, which checks and validates the XML data against the Original String to confirm the accuracy, correctness, and validity of the information contained in the XML.
Once the PAC deems the XML as valid, a unique, 36-digit long code (Folio Fiscal, also known as UUID) is appended to the XML file and reported to SAT. The tax authority receives the document and registers it, making the invoice accessible online for customers and associating it with the business.
To complete the process, the PAC supplements the certificate to the transaction data, thereby converting the Signed XML into a legally recognized fiscal document (‘Comprobante Fiscal Digital’). This final step is known as “Timbrado.”
The XML, along with the option to print the document as a PDF, is then relayed back to the issuer’s POS System for printing.
Operational aspects
The Mexican Law does not require generating daily purchase and sales summaries in the store, given that all transactions are reported to SAT.
The files need to be stored for 5 years following the end of the fiscal year in which they were created and archived according to NOM151 which gives legal guarantees to stored electronic documents.
SAT requires access to CFDI transaction data within 72 hours after issuing a receipt, for reviewing transaction and accounting information digitally. This also means that batch-reporting is also suitable, for example transferring data at the end of each business day.
In Morocco, we cannot speak about fiscalization in its original term since transactions and VAT are not reported to the Moroccan Tax Authority using any in-store technologies. Instead, a Stamp Duty is applied to the cash part of a payment, which end-users need to pay on top of the product price.
The goal of the Moroccan Government with this duty was to promote electronic payments, reducing the cost of replacing cash notes and encouraging customers to use a trackable payment form that provides similar control over businesses as fiscalization.
The clever twist in the approach is more logical than technical: while businesses can avoid receipt printing to conceal their sales income, customers, in their preference for more affordable and convenient payment methods, unintentionally compel businesses to comply with the tax law. It’s akin to having a Tax Agent standing beside the customer, enforcing tax reporting through electronic payment with every transaction.
From a technical standpoint, the only adjustment a POS System should have in Morocco is implementing a calculation on the cash part of payment and adding it to the total amount, not requiring any expensive and special fiscalisation device or the implementation of eInvoicing technology. This, at the same time, makes the operation a bit more circumstantial in the case of mixed payments (using a bank card and cash to pay the full amount), but the sacrifice seems to be worth it from a taxation perspective.
The Polish fiscalization system utilizes a Fiscal Control Unit (FCU) whose primary function is to collect and transmit transaction data. Fiscal receipts are identified by printing a Fiscalisation ID on each of them, marked with the letters ‘PL’. This enables the identification of the printer and, consequently, the business that printed the receipt.
Fiscalization device:
The fiscalization system in Poland utilizes a fiscalized POS printer, which sends fiscal data via the Internet to the Polish Central Repository of Cash Registers (CPD) database. The POS printer incorporates a Fiscal Control Unit (FCU), an electronic circuit responsible for generating files and storing data from receipts. The data is then encrypted and transferred over the internet, typically on a 2-hour schedule. The printer is sealed and has a visual identification label. Internet availability is necessary for the store for the fiscalised POS printer.
This chart shows the structure of the Polish Point of Sale (POS) System fiscalisation where the POS application prints receipts through a Fiscal Control Unit (FCU) that is incorporated into a POS printer.
Process of activation:
The activation of the FCU consists of two steps:
Pre-activation: Basic Retail Company data is uploaded into the FCU’s memory, and it is connected to the internet to synchronize with the CPD and receive the Fiscalization ID. This Fiscalization ID is then printed at the bottom of each fiscal receipt.
Activation: After the installation of the store, the first ‘End-of-Day report’ is printed. A member of the store staff must sign this report to confirm the successful fiscalization process, and then it is stored in the Cash Register’s Book of the fiscalized POS printer which the printer’s supplier provides.
In case of failure:
In Poland, if the fiscalized receipt printing is not functioning, the business must be suspended until normal operation is restored. It is not permitted to use manual receipts during downtime. Malfunctions can be identified if the POS printer fails to print or if the POS terminal displays an error message and does not process transactions:
If the internet connection fails, the fiscal printer can still print receipts, and the data will be queued for transfer once the connection is restored.
Skipping to print an End-of-Day report will not cause issues. The device will transfer the accumulated data during the next End-of-Day report.
If receipt printing fails, the store’s operation should be suspended, and repair should be requested.
All failures and downtime must be recorded in the Cash Register’s Book.
The Portuguese fiscalization system utilizes a software component that provides reporting functionality to the Portugal Tax and Customs Office’s servers while adding a unique identification to each fiscal receipt.
Fiscalization device:
There are no special hardware or middleware components required. Receipt printing fiscalization is carried out by integrating the POS application with the Portuguese fiscalization system.
For reporting fiscal transactions, SAFT-PT reports (Standard Audit File for Tax Inspection) are generated and transferred to the Portugal Tax and Customs Office’s (AT) servers. In return, a Unique Transaction Number (ATCUD) is generated and printed on the receipt, along with a QR code. Both the ATCUD and the QR code serve to identify the receipt and its issuer.
There is no need to label the devices with visual identification. Internet availability is necessary for the store.
This chart shows the structure of the Portuguese Point of Sale (POS) System fiscalisation where the POS application has an integrated component for fiscal reporting.
Process of activation:
The POS application must be fiscal-certified to be used in operation. This is a free, but complex process that takes about 30 days and needs to be repeated for every new version or update of the application.
To activate fiscalization, the Retail Company must register a ‘sub-account’ for their main account at the Portugal Tax and Customs Office’s (AT) portal. The credentials of the sub-account are then used to enable the POS application for transferring the SAFT-PT reports.
In case of failure:
During an outage, manual receipts are to be used to keep the business operating. Once the normal operation is restored, the manual receipts need to be registered in the POS application or on the e-Fatura portal (faturas.portaldasfinancas.gov.pt). Manual receipts issued during an outage will not have to include an ATCUD and QR code.
The Romanian fiscalization system utilizes a fiscalized Point of Sale (POS) printer that collects and transmits transaction data to the Romanian Tax Office. The data is transferred through the internet, requiring cable internet availability in the store.
Fiscalization device:
The fiscalization in Romania operates through the utilization of fiscalized receipt printers, collecting and transmitting daily End-of-Day reports (also called ‘Z-report’) to the Romanian Tax Office’s servers. Fiscalization involves the incorporation of a Fiscal Control Unit (FCU) into the receipt printer, followed by the activation of the FCU through the uploading of a so-called NUI number into its memory. The NUI number, which is provided by the Romanian Tax Office, will be printed at the bottom of each receipt for the identification of the issuer.
For the operation, the FCU may require the installation of a Middleware application on the POS terminal. The printer is sealed, but there is no need to label the printer with visual identification. Internet availability is necessary for the store.
This chart shows the structure of the Romanian Point of Sale (POS) System fiscalization, where the Fiscal Control Unit (FCU) is an integrated component of the fiscal reporting system.
Process of activation:
For the fiscal activation, a so-called NUI number has to be uploaded into the FCU’s memory. The NUI number can be applied for at the Romanian Tax Office by providing the purchase invoice of the receipt printer. Once the NUI number is available, it has to be uploaded by the FCU supplier into the FCU’s memory. During the first connection of the FCU to the Romanian Tax Office’s servers via the Internet, it will exchange data for registration and reports can be generated. As a next step, these reports have to be presented at the Romanian Tax Office for final approval to start using the fiscalized receipt printer. The FCU supplier will provide an ‘Intervention Book’ for the fiscalized receipt printer.
In case of failure:
If the POS system stops working, it is allowed to use manual receipts until the system is fixed. However, the failure must be recorded in the ‘Intervention Book’ with all maintenance and repairs, and all sales recorded in the ‘Special Register’. Any End-of-Day (EoD) reporting issue must be recorded, and in case of an internet connectivity issue the EoD report receipts must be collected in the ‘Intervention Book’.
Although receipts are not required to be stamped (it is optional), the entries for the POS failure in the “Intervention book” and the “Special Register” must be sealed.
In Samoa, fiscalisation system is called ‘Tax Invoice Monitoring System’ (TIMS) and is based on TaxCore’s VAT Monitoring System (VMS), focusing primarily on the reporting of each transaction using a ‘Sales Data Controller’ (SDC). The SDC can be either an external hardware element (E-SDC), known as the ‘Black Box,’ which is a physical device connecting to the Point of Sale (POS) terminal via the local ethernet network, or a software application running in the background on the POS terminal.
The goal of the SDC is to ‘fiscalise’ each transaction initiated by the POS terminal. This involves analysing transaction data for VAT calculation, digitally signing the transaction, returning a QR code to the POS terminal for printing on the receipt to identify it, and reporting the transaction to the Samoa’s Ministry of Customs and Revenue.
For the POS terminal to work with the SDC, it must be accredited, which involves integration and administrative tasks. A key aspect of fiscalisation is the use of a ‘Secure Element’ for signing transactions. In the case of a Black Box, this is typically a physical Secure Card with a special chip containing the business’s digital signature. Alternatively, a Digital Certificate, which is a file, is often used with software-based SDCs.
A third method for fiscalisation is the ‘Virtual SDC’ (V-SDC) an online service of TIMS that allows the POS terminal to report transactions instantly over the internet. However, local hardware or software-based SDCs offer the security of performing transactions even without an internet connection, which is not possible with the Virtual SDC. Consequently, business operations may be halted if the internet is interrupted when using the Virtual SDC.
An important step in transaction reporting through TIMS is the ‘Audit,’ which confirms that all transaction data have been reported. For hardware or software-based SDCs, where fiscalisation occurs locally, there is a volume limit on how many transactions can be performed without being reported (or ‘audited’) over the internet. If this threshold is reached, the SDC does not allow further transactions. If there is no internet availability, the Audit can be performed manually, but this is a tedious process, and internet use for reporting is recommended.
TaxCore’s VMS is an ‘off-the-shelf’ solution and has been used in other countries with similar principles. A substantial advantage of the TaxCore VMS is its capability to fiscalise invoices, including those issued through eCommerce and ERP platforms, allowing more businesses to contribute to report VAT to the authorities.
The Slovakian fiscalization system utilizes either software or a fiscalized Point of Sale (POS) printer that collects and transmits transaction data to the Slovakian Financial Administration’s servers. The data is transferred through the internet, requiring cable internet availability for the store.
In this article, I focus on the fiscalized POS printer-type solution.
Fiscalization device:
The Slovakian fiscalization utilizes a fiscalized receipt printer with a Fiscal Control Unit (FCU) incorporated. The function of the FCU is to collect, store, and transfer transactional data to the Middleware software, which runs as a background service on the POS terminal and forwards the data to the Slovakian Financial Administration’s servers via the Internet.
Slovakian Point of Sale (POS) System fiscalization using Fiscal Control Unit (FCU) module and Middleware
During this data exchange with the Slovakian Financial Administration’s servers, a QR code is generated which is printed at the bottom of the receipt for receipt control. The QR code provides a link to the receipt’s data, which can be reviewed by using a mobile application called ‘Over Doklad’.
Daily reports don’t need to be created with the fiscalized printer since all transactions are recorded on the eKasa portal (www.financnasprava.sk) and can be accessed for review anytime. The copy of the transaction data is also stored in the protected memory of the FCU, which may fill up in 2-6 years of operation. When it happens, the memory requires replacement. The printer is sealed, but it does not have any visual identification. Internet availability is necessary for the store.
Process of activation:
To fiscalize the POS printer, the FCU must be activated by uploading two XML files into its memory for ‘identification’ and ‘authentication’. The XML files can be downloaded from the eKasa portal about a week after submitting an online application. The XML files need to be sent to the FCU provider, who will upload them to the FCU’s memory during the printer’s activation process. The printer will activate itself during the initial connection to the internet, which takes about 24 hours.
In case of failure:
If the internet connection at the store is interrupted, the receipt will contain an ‘OFF-LINE DOKLAD’ notification and a ‘PKP’ code (business signature code), indicating that the receipt data could not be transmitted for reporting. Despite the error, all transactions will be saved in the FCU’s memory, allowing business to continue. The transmission of receipt data, however, must be completed within 96 hours of discovering the interruption by restoring the internet connection. If the internet connection cannot be restored or if the POS system suddenly stops and remains inoperable, manual receipts can be used to keep the business operating. Once fiscal receipt printing is restored, all manual receipts must be recorded in the POS System within ten days after the end of the month in which they were issued.
In Taiwan, this process hinges upon the issuance of Government Uniform Invoices (GUI), each adorned with a distinctive GUI number serving as the receipt’s identification code. Businesses are allocated GUI numbers from a pool specific to each bi-monthly tax declaration period, requiring an application to the Taiwan Ministry of Finance (MoF).
A standout feature of Taiwan’s fiscalization system involves GUI numbers participating in a ‘Uniform Receipt Lottery,’ with prizes distributed among owners whose GUI numbers align with the draws occurring every second month.
The Fiscalised Receipt
A fiscalized receipt is comprised of two main sections:
Header: named the ‘Electronic Receipt Certificate,’ housing fiscalization data, including the GUI number and two QR codes encrypting sales data for receipt and business identification.
Footer: encompassing details of the actual sale, such as product descriptions, prices, VAT rates, and values.
A noteworthy aspect of these fiscalised receipts is their 2-inch width, deviating from the industry standard of 3 inches. They must be ordered from a certified printing house to ensure a legally regulated print on the reverse side.
Because a long description can hardly fit on a 2-inch receipt, as is often the case when selling, for example, apparel, businesses often print the standard Header receipt, followed by a summary of the transaction on the Footer receipt, and then the sale receipt on a separate, 3-inch receipt using a secondary printer.
Receipts can also be collected in electronic format, requiring customers to provide registered personal identification, such as a series of numbers or a barcode; there are four applicable identification formats for that.
Operational Aspects
In the event of a POS System failure, businesses can resort to manual receipts. However, these must feature pre-printed GUI numbers that are valid for only two months and be pre-ordered for each bi-monthly tax declaration period. To authenticate a manual receipt, it must be stamped with a ‘GUI stamp,’ imprinting verified business information for validation.
Store documents must be retained for a minimum of five years following the completion of the tax reporting for the year.