Experts say that the fiscalization, together with introduction of VAT, are the most important steps for controlling a gray economy. The word itself means an efficient control over business operations and their turnover.
Various models of fiscalization methods are implemented worldwide, and demand for efficient solution is getting higher as our society plunges deeper into debts. Regardless if country is developed or developing, majority of taxpayers are misusing VAT or GST system to convert amounts collected under Authority Act for their personal use. By not disclosing this amount, other income liability also becomes affected, and such losses are difficult to estimate.
Consumer very often becomes a victim of a fraud, that doesn’t seem so serious when we consider it on individual level, but it does add up. Estimated losses are in billions, while Tax Authority is struggling to secure funds necessary for life standard maintenance and improvements for its citizens.
Fiscalization in this sense represents utilization of tax collection system with help of various secure devices designed to safe keep amounts which taxpayer has collected from buyers, and produce report totaling sum of tax money needed to be paid to the Treasury. Undoubtedly, regardless of the fiscalization model chosen by Authority, revenue increase is significant. The question we care about is: how efficient?
The fiscalization brings new burden on taxpayers, which is not fair to those who are transferring collected tax responsibly. On the other side, fiscalization can also increase operating cost on the Authority side. Carefull planning, guidance, right choice of fiscalization model and help from industry experts is highly recommendable.