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This article describes the goals, capabilities, and options for the implementation of financial modules that work with cash registers. Fiscal modules aim to enhance tax compliance, increase efficiency in tax administration, and ensure transparency and accountability in retail business practices. They can be implemented as hardware or software modules. Hardware modules are physical devices integrated or connected to cash registers, while software modules run on various devices. Software modules offer advantages such as flexibility, cost effectiveness, and scalability, but they also have limitations in offline operation and vulnerability to cyberattacks. DTT's software fiscal module supports fiscal data processing, storage, network interaction, and cryptography. It emphasizes the module's password protected asymmetric encryption for key protection.
Cross-border challenges have emerged for tax administrations in the tourism and hospitality industry due to the rise of international aggregators like Airbnb.com, Expedia.com, and Booking.com. These aggregators operate as non-resident taxpayers, making it difficult for local authorities to regulate and collect taxes effectively. To address this issue, implementing a systemic solution becomes crucial. Regulations can be established requiring international aggregators to pay taxes on behalf of themselves and property owners, with fiscalization technology facilitating transparency and accurate tax calculation. By streamlining tax administration, ensuring compliance, and establishing a level playing field, these measures can enhance the legality of cross-border rental property services and improve tax collection in the industry.
Over the past 20 years, local e-commerce and trade has grown to an international level. The largest companies headquartered in one country trade in dozens and hundreds of countries and employ two development strategies. The first strategy involves localization, establishing warehouses, developing local logistics, and paying taxes in the country of sale. The second option excludes local presence, with goods being shipped directly to the buyer from international warehouses or supplier warehouses through international delivery services. The tax administration faces the challenge of how to collect taxes from second-type e-commerce companies—non-resident taxpayers of the country.
B2C taxpayers often consciously resist to the implementation of fiscalization, implementation of tax invoices and Online Electronic Cash Registers (OECRs) that transmit real-time data to tax authorities. Cash receipts have value for the state and consumers, but retailers must bear the cost of cash registers and fiscalization. In this article, we discuss how to increase the attractiveness of fiscalization by creating a new value for taxpayers and consumers. Governments should encourage competition in the OECR market, promote software solutions instead of hardware, and permit using of cloud fiscalization solutions to reduce costs. Retailers should also be encouraged to use non-cash payments and electronic receipts. Tax authorities can reduce tax risk scoring for OECRs users, introduce tax preferences, assist taxpayers in managing retail businesses, and create open OECR architecture for retail IT solutions. Additionally, governments can increase the value of fiscal receipts for consumers through the application of state cashback, conditional tax deductions, and lotteries.
The agent-based retail trade, which involves intermediaries or agents who facilitate the sale of goods between buyers and sellers, has become increasingly popular in recent years. However, this type of trade presents unique challenges for tax administration, as multiple parties may be involved in a single transaction. In this article, we will explore the tax administration of the agent-based retail trade, including the role of agents, the tax implications of their services, and the challenges faced by tax authorities. We will also examine the strategies that can be employed to ensure compliance with tax regulations and promote a fair and transparent marketplace.
As online marketplaces continue to gain popularity and become a dominant force in the global economy, tax authorities around the world are struggling with the effective taxation of the transactions that take place on these platforms. The international nature of online marketplaces, with their individual sellers spread across the globe, makes it difficult for tax authorities to monitor and collect the appropriate amount of taxes. To address this challenge, governments are increasingly turning to online marketplaces to take on a greater role in tax collection and administration. In this article, we will look at the fresh approach to online marketplace tax administration, including the obstacles for tax authorities and three approaches for ensuring tax compliance.
The rapid growth of online marketplaces has created a new entity for tax administration, as transactions take place across borders and jurisdictions. Unlike traditional brick-and-mortar stores, online marketplaces often involve multiple sellers and buyers, making it challenging for tax authorities to ensure compliance and collect revenue. In this article, we will explore the unique tax administration challenges posed by online marketplaces, including the issues of jurisdiction, tax evasion, and the need for cooperation between tax authorities and online platforms.
Traditional marketplaces are causing problems for tax and other government authorities. On the one hand, they facilitate unregulated trade. They also allow manufacturers to sell directly to consumers and purchasers to obtain low-cost goods. As a result, marketplaces serve a vital social function. The purpose of marketplace tax administration is to avoid the hazards of the expansion of the shadow economy while keeping the social advantages of their operation. In this article, we will look at the new approach to conventional marketplace tax administration, including the obstacles for tax authorities and three approaches for ensuring tax compliance.
Price transparency is the practice of making retail prices publicly available to buyers and competitors. Price is one of the fundamental characteristics of a product or service. Consumers analyze retail street prices to make a purchase decision. For sellers, determining the street price is a complex process that directly affects their profits. A seller seeks to set a price that allows sufficient sales to maximize margins. On the other hand, the price is not just a matter of an individual seller's profit. It is also a social factor that can cause a wave of social indignation and dissatisfaction against the citizens due to sharp price increases that are incommensurate with income levels.
Implementation of OECRs (Online Electronic Cash Register) and DTT’s Digital VAT Administration solution for B2C supports fiscalization and retail tax administration in near real-time. DTT has considerable experience in implementing Digital Tax Administration Systems for VAT, GST, and other taxes for B2C and B2B in several countries around the world. Implementing the digital administration of VAT and other taxes for B2C taxpayers can increase tax revenue collection from retailers by up to 150% and boost consumer demand for legitimate fiscal receipts.
When introducing Online Electronic Cash Registers (OECRs), the state expects that all retailers will use them in accordance with the established requirements. But there is always would be possible to find retailers who work completely without OECRs or who acquire it, but never use, or use it not for every sale. Based on our practical experience of implementing online fiscalization in different countries, we will share some methods that have proven their efficiency to ensure a proper use of OECRs.
The introduction of the Electronic Online Cash Registers (OECRs) comes with an excessive cost to businesses. In addition to installing and supporting new equipment, it is necessary to purchase consumables for issuing fiscal receipts and pay for data transmission to tax authorities. It is quite natural that these initiatives cause resistance from the business. Imagine the tax officials succeed in overcoming objections, implemented online cash registers, and began to collect the fiscal data. What should they do next?
Taxi is one of the most popular types of public transport in the world. The taxi market makes a significant share of the economy of any country and can reach up to 1% of GDP. Hundreds of thousands and even millions of drivers can be involved in this segment of the transportation industry. Ride-hailing online platforms and mobile applications can operate within one country and cross-border. The lack of regulations for taxation of the new digital business models creates many problems for the national tax authorities. The standard response of forbidding and not allowing can further complicate the situation and encourage drivers to go into the shadows to evade taxation. Tax authorities should cooperate with aggregators, giving them the green light for localizing their business on the territory of the state, getting information about their customers (drivers and taxi companies), and transactions to form a tax base
States cannot abandon the concept of the fiscal receipt. This seems to be the only way to ensure the completeness of retail revenue accounting. But it is possible to opt-out paper receipts and switch to their electronic versions.
Many governments think about implementing online fiscalization systems for regulating B2C taxpayers. It is difficult to control the retail sales of products and services to consumers in terms of taxation. The tax administration of B2C segments is extremely difficult because there are many cash payments, numerous objects of control, and an enormous number of transactions. At the same time, small and medium-sized businesses contribute significantly to the economy and to the state's tax collection. Implementation of online fiscalization systems is a helpful solution for the country, as it not only leads to increased tax collection but also reduces the share of shadow economy and creates fair competition for retail business.
Implementation of online fiscalization projects is a complex and challenging task, because they affect not only considerable number of retail taxpayers, but also their buyers—citizens of the country. Consequently, governments should entail complex efforts to achieve the project’s objectives, including reducing the share of the shadow economy and increasing a tax collections.
Digital Tax