Sales management software at retail sites (SMSRS);
Recording and reporting sales by means of fiscal devices (FD);
Integrated automated trade management systems (IATMS); Changes concerning the operation of electronic fiscal memory systems (EFMS).
Draft Regulation amending Regulation No N-18 of 2006 on recording and reporting sales at retail sites by means of fiscal devices, the requirements for business management software and the requirements for persons who make sales via an e-shop
In accordance with the amendments to Regulation N-18 of 2006 (published in the State Gazette (SG) No 9 of 2020), the deadline for bringing persons in line with the requirements of the Regulation was extended to 31 July 2020. Considering that additional problems related to the variety of business models applied by the economic operators have been arising in the period before its entry into force, an extension of the deadline for the persons has become necessary.
In this regard, taking into account the complexity of the processes of alignment with the requirements, working meetings have been conducted with representatives of businesses; industry, employers’ and professional organisations; software developers; distributors, manufacturers and importers of fiscal devices, etc., which has led to some of the current proposals for amendment of Regulation N-18 of 2006. The rest of the proposed changes are: changes related to sales management software at retail sites (SMSRS); recording and reporting sales by means of fiscal devices (FD) and integrated automated trade management systems (IATMS); the work of the inter-agency committee; changes concerning the operation of electronic fiscal memory systems and making existing provisions of the Regulation more precise.
І. Changes related to SMSRS:
1. Changes related to the software referred to in Article 52a(2) of the Regulation
The proposed amendments to the draft aim to amend the requirements for SMSRS used in healthcare, with a view to facilitating them. The scope of the sales that can be managed by such software has been expanded, and sales of medical services, fully or partially funded by the Ministry of Health, have also been added. With a view to facilitating the tasks of persons using such software, it is proposed that the software be used to manage the provision of medical services in respect of which only medical information, without their cost, has to be indicated.
2. Changes related to the software referred to in Article 52a¹ of the Regulation
The proposed changes aim to alleviate the requirements for the software referred to in Article 52a¹ of the Regulation. Considering the low level of risk related to the non-reporting of sales by the users of such software, it is proposed that the requirements for such software be reduced. The proposed amendments aim to decrease the administrative burden on both the users and the manufacturers/distributors when complying with the requirements of the Regulation.
3. The regime for declaring new versions of the SMSRS is alleviated
It is proposed that a possibility be created for manufacturers/distributors of sales management software to submit declarations regarding the new versions only where the changes introduced by the new version of the software concerning a functionality, which is regulated by the Regulation.
4. Amendments related to error detection in software
The proposed amendments to the procedure for removing software from the public electronic list of the National Revenue Agency (NRA) are twofold:
- it is envisaged that the requirement for the NRA to publish the act referred to in Article 52g(1) of the Regulation, before it becomes effective, be removed;
- software manufacturers/distributors are provided with the opportunity to notify the NRA when they detect any errors in the software functionality concerning the requirements of Annex 29.
The proposed amendments will create legal certainty for manufacturers/distributors of SMSRS. At the same time, taking into consideration the protection of software users, a deadline by which they must stop the use of software removed from the NRA list is envisaged, which will provide them with the opportunity to start using another software in reasonable time.
5. Amendments concerning users of SMSRS
5.1. The draft provides opportunity for SMSRS testing at retail sites. Until now, software users did not have such an opportunity, which posed serious problems for many economic operators in the process of updating the software they use. In this regard, it is envisaged that information about the tested software, the test environment and the testing period be submitted to the NRA.
5.2. It is proposed that a requirement be introduced that fiscal devices, managed by the SMSRS, be used as a fiscal printer only, and switching to another mode of operation will not be permitted.
5.3. Introduction of a restriction on the division of the sales management process in one retail outlet into more than one software. In this case, all software used in the outlet is considered one SMSRS. The amendment aims to prevent the circumventing of the requirements of the Regulation and the concealing of actual sales revenues.
5.4. It is proposed that the requirements for users of an integrated information sales/trade management system be made more precise as regards the functionalities of these systems that fall within the scope of SMSRS and must meet the requirements of the Regulation. The amendment is intended to create greater clarity and is aimed at the users of such systems.
5.5. It is proposed that the opportunity for persons to manage in the SMSRS the sales made via an e-shop be regulated, in compliance with the requirements for information exchange between the two types of software, laid down in an annex to the Regulation. In such a case, it shall not be required that the e-shop software meet the requirements of Annex 29 of the Regulation. Thus the activity of traders who make online sales will be significantly facilitated.
5.6. The possibility for persons under Article 3(17) of the Regulation, who are using SMSRS at a retail outlet, to also manage their sales made via an e-shop from this site, is regulated. In such a case, it will be required that the sales be managed separately in each software. Such a possibility was not available until now, which caused significant difficulties for the persons who chose the alternative regime for reporting card-not-present transaction payments using bank cards.
5.7. The possibility to enter (import) in the SMSRS information from another SMSRS or from software that do not have the features of SMSRS is regulated. The absence of legal regulation in such cases created ambiguity and uncertainty for both SMSRS manufacturers/distributors and users.
5.8. The introduction of a requirement is proposed for SMSRS users to not generate and print at retail sites documents different from a fiscal receipt, containing the word ‘fiscal’ [in the Bulgarian version, ‘фискална’ (fiscal), ‘фискално’ (fiscal), ‘фискални’ (fiscal)] or derivative word combinations. The introduction of this requirement aims to prevent the issue of such documents where the SMSRS has the possibility for user-generated documents.
6. Amendments related to the provision of information by persons who make sales via an e-shop.
1. An amendment to Article 52m(2) is proposed, which is intended to relieve economic operators in tourism when submitting information to the NRA regarding e-shops/electronic platforms via which they sell their services. Where contracts for the provision of tourist services online have been concluded with intermediaries, the persons have only the data of such intermediaries, but not information on which websites or internet platforms their service will be sold. In this regard, it is envisaged that only information about the intermediaries with which the persons has concluded contracts will be submitted to the NRA.
2. It is proposed that the requirement to indicate the version of the shop software in the information submitted to the NRA by persons who make sales via an e-shop be removed.
The amendment aims to reduce the administrative burden on the persons, and it will not be required, where a transition to another version of the software is made, that the already submitted information be adjusted.
7. A change in the definition of ‘Sales management via SMSRS’ (§ 1(19))
The proposed change in the definition is in accordance with the requests made by manufacturers/distributors and users of SMSRS. The change defines the so called ‘beginning of the sale’. Furthermore, from the scope of SMSRS regulation will be removed software used for the sole purposes of:
- the issue of primary accounting documents pursuant to Article 112 of the Value Added Tax Act (ZDDS), where a payment is received or goods/services are provided, or
- preparation of accounting registers and documents pursuant to Article 6(3) of the Accountancy Act (ZSch), to track the physical movement of goods/services.
8. Changes to the requirements for SMSRS, defined in Annex 29 of the Regulation.
8.1. The draft intends to make the requirements for the SMSRS – FD connectivity more precise, and it is proposed that the requirements for its inspection be eased. A possibility is provided for the software to continue its operation for up to two hours in the absence of connectivity to the FD. Thus, the persons are provided with the opportunity to continue to record new sales in the software in the absence of connectivity to the FD, and to complete sales whose payment does not require the issue of an FR. The requirement for blocking the functionality for sale completion remains as regards sales whose payment requires the issue of an FR.
8.2. In response to a proposal made by manufacturers/distributors of SMSRS, the requirements regarding the time of generation of a unique sale number (USN) are made more precise. The time of generation of a USN in the case of continuous/recurring supplies has been regulated, and the persons have been given the opportunity to select the option that suits their business model. In this regard, in Table 18.3 of the audit profile, two new fields have been added for provision of additional information regarding continuous/recurring sales.
8.3. It is proposed that the access to references containing only health information in the meaning of Article 27 of the Health Act be excluded from the scope of the audit profile. The intended purpose is to limit the access of revenue authorities to sensitive personal data.
8.4. It is proposed that the requirements for the entry/import of sales data in the SMSRS be regulated. They are defined in detail in the annexes to the Regulation. This provides software manufacturers/distributors with the possibility to develop the relevant software functionalities in the presence of clearly defined requirements.
ІI. Amendments regarding the time period in which FD/IATMS may operate in the absence of a connection to a server of the NRA
It is proposed that the time period in which FD/IATMS may operate in the event of connection failure and impossibility to transmit data from a fiscal/system receipt be extended from 24 hours to 72 hours following the issue thereof, which is to be followed by blocking the FD/IATMS operation.
The amendment aims to facilitate the work of economic operators where problems related to data transmission, for reasons beyond their control, occur.
ІІІ. Changes concerning the work of the inter-agency committee
It is proposed that subsequent inspections be carried out by the inter-agency committee for the compliance of FD/IATMS of an approved type with the requirements of the Regulation. The amendments are intended to strengthen the control over both FD/IATMS in operation and their functioning, and their manufacturers/importers.
ІV. Changes concerning the persons selling/refuelling liquid fuels
1. Taking into consideration the need to minimise the risk of concealing sales revenue in retail sites/sites for liquid fuel refill, it is proposed that the following amendments be made to Heading IV. ‘Specific functional requirements for fiscal devices’. The changes aim to decrease the possibility for non-fiscalisation of fuel refills and their possible deletion from the list of accrued (pending) refills or handling.
2. Amendments providing clarity to EFMS manufacturers and the persons providing maintenance and repair services of EFMS as regards the initial transmission of registration data for EFMS to an NRA server, where no type-approval certificate has been issued yet and it is necessary that tests be conducted onsite in real-life conditions by the inter-agency committee under Article 10(5) of the Regulation.
3. It is proposed that the provisions related to EFMS tests be made more precise. With respect to this, supplements to Annex 17 of the Regulation have also been proposed, intended to unequivocally regulate the application of the provisions of Article 11 of the Regulation.
4. It is proposed that EFMS, in the composition of which a fiscal printer of a changed firmware version, that does not affect the functionality of the EFMS, has been included, not be subject to testing and approval in accordance with the procedure of Article 10. The EFMS manufacturer is required to declare before the inter-agency committee that no change in the EFMS functionality has occurred, and to create a new EFMS identifier in accordance with the requirements. In such a case, the EFMS manufacturer must provide the Bulgarian Institute of Metrology (BIM) with the EFMS software on a technical medium.
The proposed amendment aims to decrease the administrative burden on EFMS users and manufacturers.
V. Changes related to the recording and reporting of sales by means of FD/IATMS
1. Proposals related to the time of issue of a fiscal receipt in the case of sales via an e-shop, and of the document referred to in Article 3(1), containing the particulars under Article 26(1)(1), (4), (7) and (8) (document under Article 3(1))
1.1. It is proposed that in the case of a payment by postal money order, the document referred to in Article 3(1) be issued by the taxable person:
1.1.1. in paper form, and it is required that it accompany the goods and be provided to the customer together with the good; or
1.1.2. in electronic form, just as the good leaves the retail site of the person at the latest, and in the case of services provided – at the time of providing/paying for the service at the latest.
The proposal aims to regulate the time of issue of the document under Article 3(1).
A possibility has been provided for the person accepting payment by postal money order not to issue a document under Article 3(1), where an invoice containing the particulars indicated above has been issued, as no tax group code needs to be indicated. The purpose is, under certain conditions, the issued invoice to be accepted as a document under Article 3(1). Thus, the administrative burden on the persons will be reduced.
1.2. It is proposed that the time of issue and provision of a fiscal receipt when making sales via an e-shop be specified. The proposals aim to unequivocally determine the time of issue and provision of the documents required under the Regulation.
2. Changes in the provisions concerning the particulars of the fiscal/system receipt
2.1. In order to specify the information required under the Regulation regarding the name of the type of good/service sold, it is proposed that the provision be supplemented so that the name allows at least the identification of the type of good/service. In cases where goods of the same type are sold at different prices, it is proposed that each good be recorded separately with the respective value in the fiscal receipt.
2.2. A model of the document, which is issued by a non-fiscal device upon request, of a current amount on the account of a customer, is provided. This way, the type of the issued document is to be unified.
2.3. The hypotheses under which it is permissible to specify the quantity and type of goods/services as a total turnover in the fiscal/system receipt are made more precise and are expanded. The requirement to indicate the number and date of the relevant document, on which the payment is made, remains for such cases. In connection with the documents thus issued, it is proposed that they be kept at least for the time period referred to in Article 38 of the Tax-Insurance Procedure Code (TIPC).
The proposed changes will facilitate the activity of the persons who document the sales with the documents specified in the provision.
2.4. It is proposed that the number and date of the document be contained in the fiscal/system receipt as free text in certain cases, and in these cases the type of the document under which the payment is made is the obligatory detail of the fiscal/system receipt. The proposal aims to reduce the administrative burden on economic operators.
2.5. In the case of SMSRS, it is proposed that, where the accommodation includes sleeping accommodation, sales of additional goods/services, in respect of which the customer only undertakes to pay, to be completed in the software with the issue of a document, containing at least information in accordance with an annex to the Regulation, if payment for these sales will be made at a later time after leaving the place. In this case, it is permitted that the issued fiscal receipt summarise the provided goods/services by tax group, and it is obligatory to indicate the number and date of the document/s on which the payment is made. Where the taxable person operates with one SMSRS, it is proposed that the sale of accommodation, which includes sleeping accommodation, include summarised information about the sales of additional goods/services, and it is obligatory that a connection be made among them.
The proposed changes aim to alleviate the activity of economic operators in the field of tourism.
3. Regulation on recording and reporting partial payments
The draft envisages that, in respect of sales for which a taxable person accepts partial payment, FD/IATMS be programmed so that the sales are recorded in a department with the general name ‘PARTIAL PAYMENTS, in which all amounts received from partial payments are recorded. It is required that the information on sales of specific goods/services for which partial payment is made be recorded as free text, with the ‘#’ symbol at the beginning and end of the additional lines. In these cases, all goods and services are recorded upon final payment, after which a deduction, equal to the amount of the partial payment, is made. In the case of an IATMS, and where the operation of the fiscal device is managed by software, it must be clarified, in the body of the text by the ‘#’ symbol, that in this case the reduction in the value of the goods is due to partial payment. The relevant model documents are also available.
The proposal aims to facilitate the activity of the persons.
4. Where a comprehensive fiscal receipt pursuant to Article 34 (invoice) is issued under conditions of deferred payment, the draft intends to regulate the possibility for completing that receipt with ‘Reserve 2’ – ‘deferred payment’ type of payment, programmed and used only for this purpose. In this case, Article 26(7) does not apply. Upon receipt of payment, including partial payment, in respect of which the issue of a fiscal receipt is required under the comprehensive fiscal receipt thus issued, the number and the date of the comprehensive fiscal receipt must be indicated in the fiscal receipt, as a mandatory detail under Article 26(1)(7).
The proposal aims to facilitate the activity of the persons.
5. Amendments concerning cases where the taxable person carries out an activity as a commission agent on behalf of another person and at the expense of another person, or collects amounts on behalf of and at the expense of another person
5.1 Where the taxable person uses SMSRS
Where a person uses SMSRS to manage sales of agents, it is proposed that the sales of the agents be logically separated by agent and from his own sales, if any. In this case, the sales of agents may be recorded in a general department of the FD with the heading ‘AGENTS’. The names of the types of goods/services printed on the fiscal receipt also include the name of the respective agent.
5.2. Where a taxable person does not use own SMSRS, but has access to the SMSRS of an agent
Where a taxable person, in his entrusted capacity, makes on behalf and at the expense of a trustee sales for which he must access the software of an agent who is a person under Article 118(18) ZDDS, the draft proposes that the sales be considered as managed by the software of the agent, and it is not necessary that this software control the fiscal device of the entrusted person.
5.3. Where the taxable person uses their own SMSRS and has access to the SMSRS of an agent
Where the agent uses SMSRS, it is proposed that the recording and reporting of the sales of the agent be performed in the manner described in subparagraph 4.5.1.
The proposed changes aim to regulate the reporting of the sales of agents, where SMSRS is used.
6. Optimisation of the tax supervision process
It is proposed to regulate the control of the purchase of goods delivered by licensed postal operators within the meaning of the Postal Services Act, by cash on delivery payment. The proposal included in the Regulation aims to increase the efficiency of the actions where the NRA bodies make purchases for the purposes of supervision. In this regard, the regulation of the processes of control of purchases will lead to maintaining and increasing the positive effect of the inspections during which such purchases are made.
7. Establishing a procedure for reversal transactions for documented purchases before the introduction of SMSRS
The draft aims to regulate situations where the customer is refunded in cash in case of a complaint/return of a good, the sale of which is documented with a fiscal receipt preceding putting the software into operation. The aim is to achieve universal and unequivocal documentation in these cases.
VІ. Extension of the deadlines for taxable persons to meet the requirements of the Regulation
The proposed draft amending Regulation N-18 of 2006 aims to extend the time period in which the taxable person must bring their activity in compliance with all requirements of the Regulation. The extension is necessary due to the variety of software used and the technical challenges of connecting to fiscal devices, and, – to the additional problems associated with the variety of business models applied by economic operators.
The introduction of new deadlines is of considerable public importance, insofar as there are objective circumstances hindering the implementation of the regulatory requirements by these persons within the original deadline. The proposed extension of the deadline is entirely in the interest of the persons who fall within the scope of the Regulation; it aims to provide them with the necessary processing time to organise their activity.
Considering the complexity of the process of complying with the requirements and the current readiness level of undertakings, the draft Regulation amending Regulation N-18 of 2006 proposes that the deadline for persons using SMSRS to bring their activity in line with the requirements of the Regulation be extended to 31 December 2020.
It is proposed that the deadline for persons using SMSRS to submit information pursuant to Annex 32 be extended to 28 February 2021.
VІ. Other amendments
1. It is proposed that the provisions related to the reasons for de-registration of IATMS be made more precise.
2. An unequivocal regulation on persons reading the data on accumulated turnovers from the fiscal memory of FPR is proposed.
3. Provisions are proposed concerning the manufacturers/importers of FD, where applications for the approval of the FD type have been submitted, and the manner in which the required documentation is to be submitted to the NRA.
The proposed amendments will not lead to additional costs for the taxable persons.
The proposed amendments to the Regulation will not lead to additional expenditure from the budget of the National Revenue Agency. In this regard, the proposed draft act will not have an impact on the state budget.
The draft regulation does not implement standards and requirements under EU law.
Pursuant to Article 26 of the Law on Legislative Acts, the proposed draft Regulation and any recitals thereto will be published on the website of the Ministry of Finance and on the Public Consultation Portal for the purposes of public consultation, for a period of 30 days.