Fiscal country is a name for jurisdiction which has adopted fiscalization as an enforcement measure to curb tax evasion and efficiently control taxpayers who collect VAT/GST and/or pay income tax.
First fiscal country was Italy, publishing fiscal legislation in the early ’80s. Fiscalization method adopted then is still considered a popular trend, but mostly in developing countries due to a high cost associated with human resource within the Authority and for other stakeholders.
Since Italy, every following country has introduced some improvements in securing hardware and software through device certification and various procedures which govern installation, maintenance and the use of fiscal equipment. Unfortunately, complicated procedures drove out many brand name suppliers of retail equipment from these markets as certification procedures and product adjustments are too difficult to maintain from country-to-country, resulting in higher production/development costs which are at the end born by taxpayers who are paying a higher price for fiscal machines.
A solution that is somewhat different in fiscalization method is implemented in Sweden, Quebec, Belgium and Rwanda. Introduction of a controller connected to a non-fiscal cash register or existing POS, with functionality to continuously store journal records in a secure manner for many years is revolutionary in this sense. It is theoretically possible to have a single invoicing system made for all 4 jurisdictions at the same time, using some sort of middleware to update communication for the government prescribed controllers.
Visit our fiscal encyclopedia to find out more about solutions in operation today.
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Fiscal Country
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Fiscal Country’Fiscal country’ is a term used for a country which has adopted fiscalization as a mean to control taxpayers, usually in retail and hospitality sectors. However, investigation in various cases revealed that tax evasion is on a much larger scale in business-to-business (B2B) sector and specially with intercommunity trading.There are numerous methods proposed to fiscalize these transactions and prevent tax evasion, but we don’t have record of any system being adopted successfully.First fiscal country is Italy, starting in the early 80s. Fiscalization method adopted then is still considered a popular trend, but today mostly in developing countries, due to a running cost of such fiscalization model is quite high and requires a lot of human resource within the Authority and other stakeholders.
Since Italy, every other country which adopted similar fiscal laws has introduced some improvements in securing hardware and software through certification and various procedures that govern installation, maintenance and the use of fiscal equipment. These regulations drove out many brand name suppliers of retail equipment in fiscal countries as certification procedures and product adjustments become too complicated different from country-to-country, resulting in higher production/development costs, which are at the end covered by taxpayers who are paying a higher burden for fiscal equipment.Seeking for a solution that is somewhat different in fiscalization method (and less expensive) is presented in Sweden. Introduction of a controller that is connected to a non-fiscal cash register or existing POS, with functionality to continuously store receipts and securing complete audit period of 7 years is revolutionary in this sense.Visit our fiscal encyclopedia to find out more about solution in use today.
