euro-tax-BIGMerchants in France will use an anti-fraud retail system soon.

Pharmacies, restaurants, bakeries, florists, hairdressers, supermarkets … These professions are under the tax administration radar because they are part of the majority group that cheat on VAT. The reason is simple: their customers can pay in cash for their product/service. To fight against this tax authority in France will use new instrument. As of 1 January 2018, the VAT payers must use only secure and certified POS software and cash registers. This measure was adopted last month in the National Assembly within the framework of the first reading of the Finance law for the year 2016.

Specifically, the POS or cash register software must comply with the “conditions of inalterability, security, storage and data archiving for the control of tax administration”. The technical aspects of this security will be specified after publication of the law, without necessarily the need that the Government issues a decree to that effect. During an inspection, the taxpayer must be able to prove that cash register system in use is secure by presenting a certificate of conformity, otherwise a fine of 5,000 Euros will be imposed.

Read more in our fiscal encyclopaedia section, see under FRANCE

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