VAT Fiscalization (Automated VAT Collection)

Experience a significant increase in taxable deliveries immediately after implementation

Supervise all transactions in real time

Eliminate tax evasion and combat unfair competition on the market

The last big change in the evolution of fiscal laws is software fiscalization – an automated VAT collection process that supervises transaction revenues. The fiscal software that connects businesses to fiscal 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.

Preventing tax evasion and fraud

Better supervision of bank and cash transactions

Combating unfair competition

Raising awareness on the importance of paying taxes

Results of VAT fiscalization

These results are based on experiences from a European Union country that already had an advanced tax system and appropriate taxing procedures. For developing countries, the results of fiscalization can grow up to 300-400% and more, depending on existing circumstances before automation.

65%

increase in reported traffic for small and medium size catering facilities

39%

increase in reported traffic for small law businesses

34%

increase in reported traffic for small firms

32%

increase in reported traffic for merchants

What is VAT fiscalization collection and how it works

Businesses that are obligated to implement fiscalization and automate their VAT reporting have a digital fiscal system integrated into their cash registers and/or invoicing procedures which automatically sends every transaction to the central servers of the fiscal authority. This process enables real time monitoring of unpaid tax in the last one to three months or any other desired time period.

Fiscal authority can use automated VAT collection procedures to automatically collect taxes from cash-only businesses, bank transactions, or both.

Implementation of VAT fiscalization ultimately results in a balanced financing of public spending.

1. The transaction is sent to the fiscal authority

The 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.

2. Fiscal authority authorizes the transaction

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 lottery or other forms of incentives.

3. 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.

Benefits for the state budget

More tax revenue in the state budget
Less black and gray market activities
Increase in the quantity and accuracy of statistical data

Benefits for the economy

Encouraging software development and IT services
Encouraging market competition and growth of e-business
Encouraging informatization of the society

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