Hungary

use of fiscal cash register with remote audit is mandatory

In Hungary, as from September 1st all taxpayers must use fiscal cash register with remote audit capability. According to the Tax Office information 170.000 fiscal cash register has been already installed, and users can choose now between 146 licensed models to upgrade. In Hungary taxpayers are asked to install cash registers that are directly connected to the tax office. Hungary has observed first effects and some taxpayers are now declaring much higher amounts of value added tax (VAT ).

Hungary is introducing remote audit cash register after two-year preparation. Taxpayer, who from this day will not use the appropriate cash register and software, can expect up to one million forints (3.180 Euros) penalties, the tax office can also order the closure of their shops up to 12 working days. According to the Minister of Economy Mihaly Varga VAT in the retail sector in the first half of this year is increased by 106 billion forints (337 million Euros)…

EFD prices

Tax reform always comes with a price tag. When this cost is transferred to traders, requiring them to update their bookkeeping software or purchase specialised equipment, it creates massive resistance. Subsidies or tax write-off for these expenses are not popular measure, as suppliers of certified machines require payment upfront. Traders in developing countries, who cannot afford long term planing, consider themselves victims of such reform and do not acknowledge that modernisation will bring them benefits.

There is a solution for that…

ISSUE CERTIFIED RECEIPTS

Tax officers in Sweden, having almost 5 years experience in monitoring the use of Certified Cash Registers, have significantly improved their audit methods. It’s been noticed that half of the traders, operating in the area of inspection, were avoiding to issue certified receipts for cigarette sales despite hefty penalty fees. The case…

Fiscal Data Module (FDM) & Certified Cash Register Systems (CCRS)

The laws obliging all Belgian taxpayers in the hospitality sector (HORECA) to use Certified Invoicing Systems are:

• Royal Decree No. 1 of 29 December 1992 on measures to ensure payment of the tax on the value added. This Royal Decree determines which subject in hospitality sector is required to issue receipt using a cash register system; 
• The Royal Decree of 30 December 2009 contains definition and requirements to be met by a cash register system in the hospitality sector;
• The Act of 30 July 2013 on the certification of a cash register system in the hospitality sector. This law describes the certification process and determines the obligations of the manufacturer and importer;
• The Royal Decree of October 2013 on the implementing rules adopted regarding the certification of a cash register system in hospitality sector. This Royal Decree determines the technical requirements of the FDM which functions must satisfy the CCRS functions and set the terms of the certification process;

Taxpayers who registered voluntarily to use CCRS and FDM in the course of 2014, (registration started on December 1 2013) have been awarded with the permission to use reduced VAT rate of 12% on the sale of their goods and services. Other taxpayers will enjoy the same benefits as of January 1st 2015, when the use of certified devices in all of hospitality sector becomes mandatory…

Back in 2011 Ireland Revenue has adopted Ruled Based approach to assure its taxpayers are maintaining tax records in a safe manner. Without certification or proper identification of invoicing systems, taxpayers must comply with Rules for Cash Registers and EPOS systems that require certain functionality such as sufficient memory size to store data for 6 years, ability to produce Z-daily report and etc. These machines have no security and are easy to manipulate, yet Ireland has adopted a way to ensure the records are made available for audit. Comprehensive guide…

New incentive for consumers raises demand for sales receipts. Many countries have used this method to increase compliance = it WORKS! The simplicity to participate in the raffle depends on the ability and determination of the tax body to use this “inexpensive” method for revenue benefits.

The following article shows the case of Portugal.

Fiscal devices in Macedonia, introduced almost a decade ago, are face lifted with gadgets that will provide remote access and improve audit. Such measure will create new momentum for revenue increase as predicted in this article, however the question remains if this solution is long term or not?

Solution is benchmarked from Serbia year ago, however Serbian revenue authority is finding it difficult to do analysis by extract data from fiscal memory alone and demands more. Croatia is now considered as a new benchmark model for the region.

If you want to find out more click on the “Read more” button.

It is matter of time when Quebec Revenue will oblige all taxpayer to use certified equipment. Only question we are asking is when will they understand that SRM hardware is not the best thing out there.

Recommendation 18-5: Review the adoption of government-authorized sales-recording modules in certain sectors (e.g., food services) to address “zapper” software (zappers remove a vendor’s record of sale).