Fiji will soon join the growing number of countries that will start the fiscalization process, as of January 2018. Earlier in June this year, Regulation was officially published.
From January 1st 2018 all supermarkets and pharmacies will have to comply with the Regulation. Each sales point will be monitored by an EFD (Electronic Fiscal Device) that issues a digitally signed invoice and performs remote transfer to a dedicated tax administration server in Fiji. This invoice can be verified and stored on tax administration server in a digital form for an unlimited time.
The EFD under the Regulation must be accredited. Requirements for that are minimal and the time that developers have to fulfill in its adaptation is short, especially for the computerized POS developers. FRCS is inviting vendors to register and test their solutions with Tax Authority.
EFD consists of accredited POS (SW or HW) and Sales Data Controller that contains Secure Element. V-SDC if software version of SDC, while E-SDC is hardware version. Secure Element signs invoice and keeps counters, tax and sale amounts. In the case of hardware Secure Element, it is located on the smart card which taxpayer obtains from Tax administration at the enrollment phase. EFD system signs all invoices in the same manner, in the so-called online or offline mode. It is important to emphasize that all invoices are identical regardless of the online or offline mode. Such invoice can be verified instantly upon issuance and the buyer will know immediatly that the invoice is valid. The Regulation also announces that each invoice will be eligible for participation in the consumer award program, for the purpose of increasing demand for fiscal receipts among general population.
A special feature of EFD is the Proof of Audit (POA) function, which means that any invoice, regardless of whether it is issued offline or online, must be aprooved by the tax administration server. In the event that an EFD fails to comply with any of the POA criteria, EFD will cease to issue signed invoices until all invoices appear in the tax administration database. EFD does not have to keep audit data which is submitted and successfully stored on the tax administration server, thus relieving taxpayers from the burden of manual record-keeping.
For more information on SDC implementation methods, visit here.