Fiscal devices

Draft Regulation amending Regulation 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

Regulation N-18 of 2006 on recording and reporting sales at retail sites by means of fiscal devices, the requirements for business management software and requirements for persons who make sales via an e-shop (Regulation N-18 of 2006) was issued under Article 118(2) and (4) of the Value Added Tax Act (ZDDS) and Article 9(1) of the Income Taxes on Natural Persons Act.

The amendments proposed in the draft are threefold:

1. Extension of the deadline for persons using sales management software at retail sites to fulfil the requirements of the Regulation.

Considering the many particularities of the organisation of the persons using sales management software at retail sites, which in turn require additional technical solutions, the deadlines laid down in the current text of the Regulation are insufficient to fulfil the requirements of the Regulation concerning sales management software at retail sites. In this regard, and taking into account the complexity of the processes of compliance with the requirements and the degree of readiness of businesses, an extension of the deadline for complying with the requirements of the Regulation to 31 January 2020 for persons both registered and not registered in accordance with the Value Added Tax Act (ZDDS) is proposed. In this regard, it is proposed that the deadline for submission of the information about the software they use at retail sites be extended to 31 March 2020.

2. An alternative option of using sales management software with a standard audit file.

Considering the specificities of the organisation of the activity of medium-sized and large enterprises, whose main share of payments received from their activity is attributed to bank transfers, and also taking into account the peculiarities and complexity of the software they use, an alternative option of using sales management software generating a standard audit file is proposed. It is proposed that this option be provided to enterprises whose share of received payments for which a fiscal receipt must be issued is extremely low, considering there is a slight risk of revenue not being reported due to the fact that such revenue is not registered via a fiscal device.

Enterprises must also meet the criteria for medium-sized and large enterprises set out in the Accounting Act, as for this category of entities the risk of unreported revenue is considered to be relatively low, due to the fact that such enterprises normally have sufficiently secure internal control systems that allow for sales tracking.

Considering the requirement for low share of cash payments received, the draft includes a proposal for changing the requirement for the time of blocking sales management software at retail sites when recording sales data. The change involves replacing the requirement for blocking the operation of opening and closing a sale with a requirement for blocking at the time of recording a payment for a sale for which a fiscal receipt must be issued where the device status does not allow for the issuance of a fiscal receipt.

At the same time, a requirement will be introduced for persons who have elected to use the above option to have their software generate a standard audit file in respect of sales once a year. The file must contain information about all sales registered therein during the period, with the format and parameters of the entry in accordance with an annex to the Regulation.

3. Extension of the deadline for compliance with the requirements of the Regulation for persons who carry out sales of goods or services via an e-shop and who do not use any other software for managing sales made via the e-shop other than the software of the e-shop.

It is proposed that the deadline for persons carrying out sales of goods or services via an e-shop and not using other software for managing the sales made via the e-shop than the e-shop software to make this activity compliant with all Regulation requirements be extended. The proposed new deadline is 31 March 2020. It is proposed that these persons submit information about the software they use by 31 May 2020. The deadline must be extended due to the great variety of software used and the technical challenges of communicating with the fiscal devices.