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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