Fiscalization is a set of measures introduced to control invoicing in cash. These measures include changes in the IT environment (implementing electronic cash registers with real time connectivity to the central system), operations (new tax inspection process) and regulation (changes in the regulatory framework to support compliance).
What is software fiscalization?
The last big change in the evolution of fiscal laws is software fiscalization – an automated VAT collection process that supervises transaction revenues. The transaction system software that connects businesses to tax authorities works to eliminate tax evasion and combat unfair competition on the market. Countries that implemented fiscalization have experienced a significant increase in taxable deliveries starting immediately after the implementation.
Benefits and drivers
Control over business operations and their turnover (minimize underreporting and overreporting)
Stamping out or minimizing avoidance of business sales tax, goods and services tax or VAT (address market inequality and unfair business advantage)
Make collecting tax revenue a crucial state revenue item (improve on the collection process rather than increase tax rates)
Controlling the gray economy (better supervision of cash and non-cash transactions)
Consumption tax collection at State level increased by 48% between 2012 and 2013
Declared personal income from sole traders & crafts professionals increased by 35%
2012-2013 increase in taxable revenues: - Food and Beverages industry - 40% - Merchants and others - 15%
Total Tax Revenues Increased by USD 1.1 billion in the first year of implementation
What is online VAT collection and how does it work?
The transaction is sent to the fiscal authority
Receipts or invoices are issued using fiscal software and an internet connection – offline procedures are also established. Each element is sent to the fiscal authority for authorization in real time.
The fiscal authority authorizes the transaction
The fiscal authority authorizes the transaction with a unique identification key. That key is then sent back to the fiscal software. The code can later be used to further monitor businesses via forms of incentives.
The receipt or invoice is printed with a unique ID
A unique identification key is printed on every authorized receipt/invoice. The customer can check if the receipt/invoice is authorized by checking the key with a text message, visiting a website, or in person.
Ensure transaction monitoring and provisioning through the central SPOC at the Tax Authority side
Clear, structured view of taxpayer and transaction data with full administration capabilities
Easy and practical access to transaction information for audit purposes – in-the-field or in-office experience
Geo-oversight for enhanced data analytics and plans for incorporating an ML engine for better data-driven tax inspection and audit
Control and monitor tax revenue
and effectively manage revenue stream from new and existing tax obligors
Out-of-the-box Point of Sale and Electronic Cash Register connections to the central transactional system
Advanced spatial data analytics and geolocation-based data-driven tax inspection
Advanced AI tax obligor behaviour modeling and predictive analytics
Direct debit for declared tax mandates for each tax obligor
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ASEE group is one of the biggest IT companies in the area of production and implementation of its own software solutions and services in the region of South Eastern Europe, Turkey, Spain, Portugal, Andorra, Colombia, Peru and Dominican Republic. The Company provides ICT solutions for various industry verticals including the financial sector, payment sector, public administration and telecoms.
The company provides products and services within Payment business under Payten name. Since October 2009, the shares of Asseco South Eastern Europe (WSE: ASEECOSEE, ASE) have been listed on the Warsaw Stock Exchange. Asseco SEE Group employs over 2,300 people in 19 countries. More than 10 banks out of the 15 largest ones in southeastern Europe are already clients of ASEE.