HOME Blog Fiscal Signature Device-ESDs: Streamlining Tax Management for Authorities and Users

Fiscal Signature Device-ESDs: Streamlining Tax Management for Authorities and Users

2023-05-12 10:55:04

Tax control is the abbreviation of tax source control. It is a means for the national tax authorities to better understand and grasp the taxpayer's taxable behavior and strengthen the management of tax revenue sources. The main function is to avoid less collection due to the loss of tax sources. Taxation, everyone knows that taxation is one of the main sources of a country's fiscal revenue, so the amount of tax sources plays a decisive role in the scale of a country's fiscal revenue. Generally, countries control tax sources through tax-controlled cash registers and tax-controlled invoicing machines.

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To adapt to the increasingly diverse market, tax authorities have introduced a new device in addition to fiscal cash registers and fiscal printers - the fiscal signature device. This device is designed to authenticate financial documents, such as tax invoices, that are generated on any personal computer (PC) by using a signature. Initially introduced in the markets of Greece and Kenya, the fiscal signature device provides an additional level of security and verification for financial transactions.

The fiscal signature device utilizes a unique computer program, known as a driver, to generate a distinctive number or signature, which is then added to and printed on every invoice issued by the user's system.

For a long time, one of the major obstacles in collecting value-added tax (VAT) has been tax evasion through the failure to issue tax invoices, particularly among small and medium-sized taxpayers. The implementation of Electronic Sales Devices (ESDs) is expected to alleviate this issue, as some countries have tax laws mandating electronic tracking of sales transactions through GPRS modems to central servers maintained by tax authorities.

To guarantee greater adherence to tax regulations, buyers will be prompted to request tax invoices produced by ESDs, since this is the sole means of recording taxable transactions.

The benefits of using ESD

There are several advantages to using ESDs.

Firstly, it reduces the workload of the Tax Authority, saving time and resources in managing tax documents. 

Secondly, it minimizes disputes for users, as the fiscal memory can provide irrefutable evidence. 

Thirdly, it can contribute to tax revenue growth, as electronic signatures ensure the tight security and accuracy of all financial records, allowing for easier identification and taxation of taxpayers' income.

Main achievement

By adopting a fiscal approach, law-abiding citizens are taking a step towards a fairer society as the system ensures that everyone pays their taxes. For tax authorities, this means less time and energy spent on tax audits and investigations.

That is what Fiscat is all about: providing professional fiscal devices to users to make things easier for tax authorities.

If you are interested in fiscal cash registers, fiscal printers, or fiscal ESDs, please feel free to contact us. We look forward to hearing from you soon!

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