Terms and Definitions

Public Revenue Authorities Support Center

The term is used to describe a technology, first pioneered by the Italian Ministry of Economics 20 years ago, that uses a secure electronic memory to safely keep key financial data such as VAT totals, total turnover and owner details for the tax authorities.

Fiscal Countries
Fiscal Countries are countries that have special legislation in place defining:
  • The legal obligation for all businesses that retail goods and services to use specially approved by the tax authorities Cash Registers, Printers or other security equipment.
  • The technical specifications that the obligatory security retail equipment must meet.
  • The approval procedure by which the compliance to technical specifications is verified and license to sell the product as a fiscal one is issued.
Countries that have such special “fiscal” legislation are: Italy, Greece, Bulgaria, Romania, Poland, Russia, Cyprus, Malta, Serbia, Hungary, Ukraine, Turkey, Kenya, Ethiopia, Brazil, Argentina and others.  The list is ever growing as more and more countries chose this technology to raise and secure their public revenue.

Non-Fiscal Countries
Countries that do not have special legislation regarding security equipment for tax auditing. Non-fiscal countries have no technical restrictions and no approval procedures as to the type and functionality of the retail equipment that is used in the country’s enterprises.  The free market and competition decides on the predominant technical characteristics, giving rise to tax evasion phenomena that are well known to the authorities and drive the move to fiscalization.

Fiscal Electronic Device
Fiscal Electronic Device (FED) is an electronic computer like device or system, which is used for the safe recording of transactions and/or issuance of revenue-receipts (“Legal Fiscal Receipts”).  A FED includes :
  1. a processor,
  2. a program memory / fiscal firmware,
  3. a working daily memory
  4. a built-in rechargeable battery back-up for working memory protection,
  5. a real-time clock / calendar,
  6. a fiscal memory,
  7. a special fiscal memory reading port
  8. a slip printing mechanism (internal fiscal printing mechanism),
  9. connection control units for keyboards, displays and data transmission input-output sub-units (for other supporting equipment connection such as bar-code scanners, balances, card readers, etc).

All the crucial parts of a FED are secured inside an encloser/case, which is shielded in an inviolable manner by a special sealed bolt (fiscal bolt).
FEDs could generally be classified into two (2) main categories:
  1. Fiscal Electronic Cash Registers (FECR) – electronic and/or computerized devices being used in retail transaction. FECRs issue a legal receipt by keying transactional data and their fiscal memory stores primarily payment amounts and VAT sums.
  2. Fiscal Electronic Signature Devices (FESD) – electronic devices being used to digital sign fiscal documents (invoices, consignment notes, receipts, etc). FESDs are operating in connection to existing computers and POS systems.

Fiscal memory
The most important part of a FED is “fiscal memory”. The fiscal memory is the unit which stores all information of tax (“fiscal”) interest. This information is stored as read-only data for the entire lifetime of the FED, with no limitation in time. The fiscal memory is a non-volatile semiconductor integrated circuit of Read-Only Memory type (EPROM or PROM) or absolutely equivalent electronic circuitryFiscal memory is the secure electronic part in which the daily turnover data are permanently stored and without which the device cannot operate. The fiscal memory is installed into the machine’s enclosure in such a way as to make its removal impossible without breaking the fiscal seal or without destroying the base plate of the enclosure. The content of the fiscal memory is preserved intact without time restrictions and under any circumstances

Working daily memory
The working daily memory is the electronic part / unit which stores rates, figures, sums, counters, accumulators, indicators and all intermediate results of the processing data needed or created during daily operation of the FED. Only non-negative numbers may be recorded. Consequently, subtractions are not possible, nor can data be erased from the working daily memory.

The working daily memory is a RAM (CMOS or other) type semi-conductor memory and its content is preserved by a rechargeable built-in battery back-up.

Fiscal Legal Receipt
Fiscal Legal Receipt is the revenue receipt issued by an FECR for each retail transaction and given to customer/client. The Fiscal Legal Receipt is the only valid and legal receipt issued for the customer/client. The data of this receipt are kept in the working daily memory and finally those data are permanently stored, among other Fiscal Legal Receipts data, in the fiscal memory of the FECR. The FECR’s software guarantees the avoidance of any kind of cancellation – deletion of an issued Fiscal Legal Receipt slip as well as the issuance of a receipt with negative total amount.

Daily Z - Fiscal Legal Report
The permanent registration of the summary data produced by daily transactions is taken place by Daily Z - Fiscal Legal Report issuance. The Daily Z - Fiscal Legal Report is used for registering the day totals in a progressive and accumulative manner in the fiscal memory. The data record which is stored into FECR’s fiscal memory contains among others, the following information: date and time, VAT rates and daily VAT sums, number of day’s revenue receipts, etc.

Daily Z - Fiscal Legal Report is the daily closure report slip. This slip is issued at the end of each day, during which transactions with clients and Fiscal Legal Receipt issues have taken place. The data of the Daily Z - Fiscal Legal Report are finally registered in the fiscal memory of the FED by the time of the issue of this slip

The Daily Z - Fiscal Legal Report is an important fiscal document which is necessary to justify relevant daily accounting records and must be kept by the owner.