Overcoming Resistance to Implementing Online Fiscalization for B2C Taxpayers

Major Reasons for Taxpayers’ Resistance

B2C taxpayers consciously resist the introduction of tax accounts and Online Electronic Cash Registers (OECRs) transmitting real-time data to tax authorities. Cash receipts have value for the state and consumers, but retailers must pay for cash registers and fiscalization. Similarly, citizens will resist paying for police cameras in their bedrooms out of their own pockets.

In our experience, the following methods will help reduce resistance during the implementation of the fiscalization system for B2C.

Reducing the Cost of Ownership OECRs for Taxpayers

Competition in the OECRs market reduces costs. International cash register manufacturers will not comply with special national standards if the market is less than 100,000 devices. Local monopolies capture the market without these standards, which leads to an increase in the cost of cash registers. There are sometimes examples of artificially creating new monopolies. Therefore, for small markets, it is recommended to use international solutions and not invent unique requirements, such as for the security of fiscal information.

Software Solutions Instead of Hardware

Software fiscal modules are cheaper than hardware and reduce the cost of owning cash registers.

Cloud Solutions

Cloud solutions for fiscalization offer ready-made integrations with banks, online marketplaces, and e-commerce solutions, and reduce the cost of OECRs compared to local systems.

Development of Non-cash Payments

Retailers need to be encouraged to use unified solutions for fiscalization and accepting non-cash payments. Banks are developing non-cash payments, offer acquiring services and equipment, and are often willing to finance part or all the solution costs for their clients.

Electronic Receipts Instead of Paper

Sending electronic fiscal receipts to customers’ mobile numbers reduces the need for expensive printers and consumables. In addition, ecology improves because of the reduced use of thermal paper and ink.

Creation of the New Value for B2C Taxpayers (Retailers)

Tax authorities should not only offer options for reducing taxpayers’ costs but also increase the attractiveness of fiscalization by creating new taxpayer value, for example:

• Reducing the tax risk scoring for OECRs users and introducing tax preferences, such as cancellation of some control measures.
• Implementing non-declarative tax regimes based on fiscal information from OECRs.
• Assisting taxpayers in managing retail businesses, for example, through a personal online account on the tax authority’s website.
• Creating an open OECR architecture for the development of IT solutions for taxpayers in the field of retail business accounting and management.
• Creating infrastructure for exchanging information with banks. Based on OECRs fiscal data, banks provide loans for working capital replenishment.

Creation of the New Value for Consumers

Demand for valid fiscal receipts from buyers is a powerful force that compels sellers to use online cash register equipment. The demand will grow with increased buyer motivation and the value of the fiscal receipt for him.

Governments can increase the value of receipts to consumers by using the following methods:

• Application of an unconditional government cashback, where the consumer receives a part of the amount back for officially registered receipts.
• Use of conditional tax deductions for personal income tax or some purchases, such as for medicines or education payments.
• Conducting a lottery for buyers who register receipts.
• Creating an open infrastructure for exchanging information about receipts with third parties. In exchange for this information, manufacturers of goods, banks, and retailers are ready to provide discounts and bonuses, creating additional receipt value for the consumer.