Online Fiscalization Projects in Kyrgyzstan and Saudi Arabia

Online Fiscalization and OECRs (Online Electronic Cash Registers)

The term “fiscalization” has roots from the use of fiscal devices that register all the sales of the taxpayer to the individuals buying with cash and non-cash, so that the taxpayer cannot interfere with the work of the register and amend the information about the sales. Originally, cash registers had a separate tape for registering sales, and then the secure untampered fiscal memory. It gives tax authorities independent access to gather unaltered sales data.

With the development of the internet and communication channels, fiscalization systems increasingly using transmission of fiscal data to the tax authorities in near real time. That lessens dependency on the storage of fiscal data in the local memory of the fiscal device.

Online Electronic Cash Registers (OECRs) or online cash registers are fiscal devices transmitting a large amount of fiscal data to tax administration daily. Data varies from the transmission of the day sales reports to the transmission of each fiscal receipt.

With the development of the internet and communication channels, fiscalization systems increasingly using transmission of fiscal data to the tax authorities in near real time. That lessens dependency on the storage of fiscal data in the local memory of the fiscal device.

Kyrgyz Republic

DTT, as a participant in the technical assistance project, is conducting a modernization of the tax administration system in the Kyrgyz Republic, including the implementation of an online fiscalization system. DTT is implementing an online fiscalization solution developed specifically for the international market. A pilot project is currently underway for testing OECRs (Online Electronic Cash Registers). The project covers several thousand units of cash registers and distinct types of taxpayers, including taxi service providers.

The online fiscalization system has the following features:

• Specialized chip on a smart card ensures authentication and invariability of fiscal data, and supports offline mode if real-time connectivity is not available. Cryptographic technology is based on international standards.
• Cloud-based fiscal chip for e-commerce solutions.
• A software fiscal chip similar to e-SIM technology on the cell phones does not require the use of smart cards, a specialized reader or NFC chips on the phone.
• Support of a large variety of fiscal devices, from standard cash registers, smart cash registers, fiscal printers to software cash registers on cell phones and desktops. It also supports the software cash register as the web application.
• Support of both paper and electronic fiscal receipts. Eliminating the need for paper receipts saves money on printers and consumables.
• Integration with cab aggregators, which allows real-time fiscalization of trips.

The Kingdom of Saudi Arabia

ZATCA (Zakat, Tax and Customs Authority) implements a project to introduce electronic invoicing (electronic tax invoices and cash receipts) in both the b2b and b2c segments. The project covers only VAT payers and does not cover all businesses in the country. DTT provides consulting services to the ZATCA project team and other project participants (Oliver Wayman, PWC, Deloitte).