Fiscalization 2 in Belgium starts in 2025
Belgium has announced the modernization of its fiscalization system, which should start in the year 2025.
Do you want to know the key aspects of this new fiscalization system? What are the challenges Fiscalization 2 will need to face?
We are talking about modernization because the concept based on two components FDM (Fiscal Data Module) and RCRS (Registered Cash Register System – POS) will remain so. The old model of fiscalization is based on transaction journal retention in FDM memory, on-site (at taxpayer’s premise), which makes it much more difficult for tax inspectors to control and verify data that has been archived in FDM for years. The process of uploading that data, physically and personally at the place where the FDM is, is slow and long, as well as its physical transfer (with USB only) to the tax authority server for further analysis.
The new FDM 2.0 must immediately, after the transaction if the internet is available, send the data to the cloud server. In case of interruption or lack of internet, the transfer is done when the internet is available, at the latest after 10 days. The fact that FDM 2.0 must have more internal memory than FDM still allows offline mode.
The connection between FDM 2.0 and POS is no longer via RS232, which modernizes their mutual communication.
The smart card (VSC) as a secure element is replaced with microchip (ATECC608B or equivalent) that is built into FDM 2.0.
A copy of the invoice is also allowed. The issued invoice does not necessarily have to be in paper form, it can be in electronic form if the customer requests it.
In addition to replacing FDM with FDM 2.0, the taxpayer will have to make the necessary changes to his RCRS by his supplier so that it is compatible with FDM 2.0.
New taxpayers must be fiscalized by July 1, 2025. The very first taxpayers who registered FDM by the end of 2017 will have to switch to the new FDM 2.0 no later than July 1, 2026.
Those taxpayers registered between 2018 and 2021 will switch to the new system by July 1, 2027.
Newer taxpayers from 2021 must switch to the new fiscalization no later than July 1, 2028.
Fiscalization 2 will cover only the Horeca sector, which was also the case with Fiscalization 1. The expansion of the list of taxpayers has not been announced.
It is unclear why FPS Finance did not expand the list of obligees beyond the Horeca sector, to other activities, where there are perhaps even more irregularities than in the Horeca sector. New remote audit multiplies the efficiency of tax inspectors, so they could easily control 2-3 times more taxpayers.
