COVID-19 and Fiscalisation

32228472408Very soon after the official announcement of the virus COVID 19, it was clear that its consequences, in addition to the medical ones, would greatly affect the economies of all countries in the world. The rapid spread of the infection around the world has led to quarantines of various forms and levels as well as a reduction and very often a complete cessation of production.

The immediate consequence of reduced production is a drop in collected taxes and an increase in the number of unemployed. Taxes are certainly the biggest input to the budgets of both the state and local areas. Employers have found themselves in a situation where they cannot pay salaries nor taxes.

The first and most frequently mentioned words related to the tax policy of each country in the previous period are “DELAY” and  “MEASURES.”

Measures include:

  • up to X months’ delay on VAT payments
  • extending VAT returns and payments to month X
  • delaying VAT returns for small businesses
  • providing VAT payment break till end of month X for small enterprises.
  • postponements on returns.
  • relief for small VAT payers. Limited VAT reliefs
  • VAT credit refunds and suspension of penalties.
  • providing VAT filing and payments delays
  • reporting period changes or payment delays.
  • exempting small taxpayers from VAT
  • delaying VAT filings by XX days
  • VAT rate cut for COVID crisis
  • VAT rate cut on hospitality services will be from X% to Y%
  • Discounts on VAT payments
  • increasing VAT credit limit.

 

How Covid 19 Influenced the Fiscalization Process

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EET in the Czech Republic is ending its third year

subpage-icon-415In previous article called “fiscalization slowed“, we mentioned that there has been a slowdown in the process of fiscalisation in the Czech Republic. Groups 3 and 4 had to wait for the fiscal law to be modified in order for them to be fiscalized. New Fiscal Law’s amendment passed the parliamentary procedure on 15.09.2019.

Groups 3 and 4 starts at the same time 1.May 2020.

Taxes for some individual activities covered by groups 3 or 4  are reduced from 21% to 10% to make fiscalisation more efficient (hairdressing and barbers’ services, bicycle repair, footwear, clothing and textile repair and repair, and draft beer sales, ….).

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Slovakia – online fiscal receipts starting July 2019

TA slovakia (1)As announced in our previous News post (Slovakia: Virtual cash register -EKAS), in Slovakia, all fiscal cash registers must switch to online mode by the July 1. With this date, every taxpayer who did not register with the Tax Administration and took over the cash register code would be penalized. This is the biggest reform in Slovakia since introduction of the fiscal law in 1995.

By mid-June, the number of downloaded cash register codes was about 208,000, which is 85% of the expected number of fiscal devices. But as the number of taxpayers, manufacturers and services that did not prepare in time were great, a concession was made and at the last moment, an annex that moves the deadline for the end of the year came into force. Also as help, Call center advising taxpayers has extended their working hours.

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Vending machines – can they issue fiscal receipts? Why not.

vehwvgiye7i21One jurisdiction is currently preparing amendments to the fiscalization law with the desire to expand the list of taxpayers who must issue fiscal receipts. The inclusion of the owner of the vending machines on the VAT payer’s list that should be fiscalized has caused quite a lot of discussion through the media. The proposer of the law amendment in the reasoning of its offer states that the sale through vending machines is increasing from year to year, many of these machines are not registered and most owners of the machines are not declaring sales.

Opponents of the amendment suggest that no manufacturer of the vending machines supports fiscalization anywhere in the world because there is no technical possibility to upgrade the machine in such way to suite requirements. However the proposer remains on track with one concession to prolong deadline for implementation. The year 2021 is the year when all the vending machines will have to issue fiscal receipts and be connected to the tax administration server in Croatia.

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Russia – online cash registers

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Back in 2016 we have announced that there will be transition to the new fiscal cash register system in Russia by mid-2017. Nowadays Russia is entering the second year of this project with large numbers. The online cash register system includes:

  • 2.400.000 fiscal cash registers,
  • 1.000.000 taxpayers, and
  • 120 million issued fiscal receipts per day.

 

These numbers will continue to increase. Fiscalization process is not completed. There are still several stages that will include new taxpayers who have not been included so far. The tax authority reports very good results of the fiscalization process which includes:

  • revenue per cash register is doubled,
  • number of involved taxpayers and cash registers has doubled, and
  • overall budget revenue has increased.
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