Fiscalization

Fiscalization is a system designed to avoid retailer fraud in the retail sector. It involves using special cash registers or software to accurately report sales, helping prevent tax evasion. Fiscalization laws about cash registers have been introduced in various countries to control the grey economy by ensuring that all retail transactions are properly recorded and taxed, thereby reducing the possibility of fraud.
Fiscalization law mostly covers:

how the electronic cash register should work,
how the related retail processes should be designed,
which data should be saved and how,
which reports for the authorities should be created,
how and when should reporting be done

Fiscalization is, in many cases, linked to other laws, such as laws related to accounting, taxation, consumer protection, data protection and privacy.
It's common for fiscalization law to be confused with fiscal law. Fiscal law and fiscalization are different things in finance and taxes. Fiscal law is about the rules a government makes for handling its money and taxes. This includes how to collect taxes and manage spending. Fiscalization is more specific, focusing on how to stop tax evasion, especially in retail.

Basic philosophy

In case of fiscalization laws, every government is basically following the same philosophy:

the tax-related data of every transaction should be stored safely in a manner in which data manipulation is not possible after the transaction is closed
reporting to the tax authority about stored tax related data should be possible any time and without any data manipulation

Based on this philosophy, different governments are defining different regulations that must be implemented in the different areas of the retailer's environment.
For example, fiscal law in Portugal is specifying that VAT-related data are regularly sent to the authority. Based on the data most implementations are done in the ERP system of the retailer. On the other side countries like Serbia have fiscal laws which force the usage of the fiscal printer. The fiscal printer stores the VAT-related data and sends it to the fiscal authority via an included special network device. This kind of fiscalization is mostly implemented in the cash register application.
In some other countries, the transaction data must be signed by a special signature device and the data has to be saved in a special journal database. Typically, these kind of fiscal laws are implemented in the POS application and in the back office.

History

Fiscalization, along with VAT, was introduced to fight against the grey economy. The first country to introduce fiscal law in regards to the use of specific fiscal devices was Italy, and second one was Greece. Italy introduced this fiscal law in 1983. Introducing fiscal law—particularly about cash registers—came from the need to avoid retailer's frauds. According to fiscal law, an appropriate fiscal receipt has to be printed and given to the customer.

Challenges of modern retailing in the fiscal context

Different aspects of fiscalization are creating big challenges
The implementation of the fiscal laws in a particular country is already by itself a complex issue. But if we put it in the context of the modern retailing then it becomes an even more demanding and challenging topic.
As of today, modern retailing means that:

Retail concepts are mixed. One retailer has several different store formats. Every format has some or even many different retail processes and every retail process can be influenced by the fiscal law
Many different payment methods are used, each of which are usually treated differently by the fiscal law.
Multichannel retailing is all around. Transactions can be created anytime, anywhere and mostly with different systems.
Marketing campaigns are very complex. To attract the customer, retailers are getting very creative. They are creating complex promotions with complex discounts. They are, in many cases, strongly influenced by the fiscal law.
Retailers are becoming more international. At the same time, they are unifying their processes and technology. Yet the fiscal law by country is forcing the usage of certain technologies.
Technical approaches of fiscalization

The technical implementation of the fiscal law always follows one or more of the following technical aspects:

hardware-based fiscal implementation
software-based fiscal implementation
special fiscal requirements with different implementations

In addition, the technical implementation itself is also forced by the fiscal law.

Hardware-based fiscal implementation

Some fiscal laws define the use of special hardware devices.
These are usually:

fiscal printers – receipt printers with special fiscal memory where fiscal data is stored
fiscal communication modules – devices that are used to send fiscal data to the fiscal authority
fiscal memory boards – circuit boards that can be included in or connected to the POS, ECR, or printer
signature devices – devices that produce digital signatures which are used to secure the fiscal transaction

Most of the fiscal countries in the world today are following the path of hardware-based implementation.

Software-based fiscal implementation

This can be a more modern way of implementing the law.
The background is that the law defines how something has to be done but not which device should be used. This model is more liberal, and it can be expected that in the near future more countries will follow this approach.
Today, there are several different scenarios:

send each transaction to the fiscal authority in real-time, to get a digital signature from the authority and to include it in the transaction.
store every transaction in the database where every entry has a sequence number and a digital signature
save data in a special format in special fiscal journal
digitally sign every transaction by a special algorithm
Special fiscal requirements

In some cases, in addition to these technical implementations, there are some additional technical approaches. They are mostly related to:

data security and protection
archiving
reporting
special business processes
Fiscalization Compliance Management

Implementing fiscalization typically requires not only technical changes to invoicing and point-of-sale systems, but also ongoing operational management. Guidance for tax administrations notes that fiscalization is not a one-time “set and forget” process and requires continual planning, communication, monitoring, and evaluation. In practice, organizations often need change-management processes to track regulatory updates, maintain compliant configurations, and support audits and reporting over time.
Some publications propose maturity models for managing fiscalization compliance, including a four-level model described as reactive, fragmented, connected, and strategic.

Fiscalization law by country

Every country has its own laws, so it is the same as fiscal laws. The main challenge is to find a source of information and official documents.

Country	Type	Description
Albania	Software	The new fiscal law is in force since 2019. The usage of a certified software solution that supports real-time communication with the tax authorities is mandatory. Receipts must be issued to the customers and they must include the mandatory elements, as prescribed by the law.
Austria	Hardware/Software	Austria’s fiscalization system, active since 2016/2017, combines hardware and software, requiring fiscal journals, secure digital signatures, QR codes on receipts, and offline handling. Every POS must be registered with FinanzOnline and support exportable DEP data stored for seven years. Closed systems, used by retailers with over 30 POS devices, require official certification but not digital certificates or POS registration. Failures must be reported, with special procedures for offline sales.
Belgium	Hardware/Software	Belgium's fiscalization system applies to the HoReCa sector, requiring businesses with on-premise sales above EUR 25,000 to use the certified GKS system, which includes a POS system, a Fiscal Data Module for secure transaction storage, and a Virtual Smart Card. Currently, transaction data is stored locally in the FDM and inspected on-site, but with GKS 2.0, real-time data transfer to FPS Finance will be introduced, along with QR codes, e-receipts, and improved transaction speed. Certification remains mandatory for all fiscal devices, and under GKS 2.0, transaction data will be stored in the FPS Finance Cloud, reducing the need for on-site inspections.
Bulgaria	Hardware	In 2018, new fiscal law has been presented, introducing new regulation related to the fiscal devices. Some of the important new requirements are: USN number generated by POS software at the beginning of the transaction, use of QR code on the receipt layout, special voucher handling, special rules for e-shops, etc. There are also some important issues related to the certification process itself.
Bosnia and Herzegovina	Hardware	According to the fiscal law of the country, each retail store is obliged to record every single transaction over fiscal devices. Communication with the tax Authority occurs via GPRS.
Croatia	Online	Croatia’s online fiscalization system mandates real-time transaction authorization for all VAT-registered taxpayers conducting cash transactions. It is entirely software-based, requiring no fiscal hardware, and relies on secure digital certificates issued by FINA. Each transaction must be digitally signed and validated by the Tax Authority, with a unique receipt identifier. Receipts must include a QR code for consumer verification. The system supports mobile and desktop POS platforms and is backed by comprehensive legislation. Croatia’s model ensures transparency, data integrity, and legal compliance without enforcing hardware certification.
Czech Republic	Non-fiscal	The fiscalization in Czech Republic used to be software-based and included those fiscal relevant transactions had to be sent to the fiscal authority through the Internet to be authorized. This system entered into force in December 2016, was later suspended in 2020 due to pandemic, and was finally cancelled in 2023.
Denmark	Software	Denmark's software-based fiscalization system, introduced in 2019, mandates digital sales registration and compliance for specific industries without requiring real-time transaction reporting to tax authorities. From January 1, 2025, businesses using unregistered ERP systems must ensure their transaction data can be exported in SAF-T format, while all fiscalized businesses must maintain an electronic journal for transaction storage. The Danish Tax Administration enforces compliance through audits, imposing fines starting at DKK 10,000 for non-compliance, ensuring secure transaction recording without mandatory certification.
France	Software	France uses a software-based fiscalization model requiring all cash register systems to ensure secure, unalterable, and traceable transaction data. It applies to sales, mobile, and e-commerce cash payments. Receipts must include unique identifiers, with sequential transaction numbers and digital signatures that chain transactions. Event logs, monthly/yearly reports, and strict archiving are mandatory. Certification is required—either via official bodies or self-certification with strict documentation. Regular and triggered recertification ensures ongoing compliance. France’s model is robust but complex, demanding centralized architecture, thorough documentation, and continuous monitoring.
Germany	Hardware/Software	In Germany, fiscalization requires the use of a certified Technical Security Element to secure POS transactions. Businesses can choose between hardware-based or cloud-based TSEs. All POS systems and TSEs must be registered with tax authorities. Transactions must be recorded immediately, signed, time-stamped, and stored securely. The law defines receipt structure, payment types, and data export in DsFinV-K format. Transactions must be logged at start and end. In case of system failure, offline operation is allowed. Cloud TSEs need a local connector. Compliance ensures audit readiness.
Ghana	Software	Ghana's E-VAT system mandates real-time transaction reporting to the GRA for all VAT-registered taxpayers. No hardware is required, but POS apps must be certified. Receipts include QR codes, digital signatures, and timestamps. Offline mode is allowed for 24 hours, with auto-sync. Implementation is phased, ending in 2024. Solutions include a free GRA tool, integrated POS/ERP, or third-party software. VAT rates are 15% standard and 3% reduced for special schemes. The system ensures transparency, flexibility, and compliance across all taxpayer categories.
Greece	Hardware	Greece has implemented fiscalization since 1988, continuously updating regulations to integrate new technologies, including the mandatory QR code on receipts and real-time data reporting to the myDATA platform. Between 2023 and 2024, businesses were required to interconnect card payments with fiscal receipts and use certified fiscal devices, which store transaction data, maintain an electronic journal, and communicate with tax authorities in real time. From 2024, all transactions must be reported instantly to Greek tax authorities, with non-compliance leading to fines and legal consequences.
Hungary	Hardware	Hungary operates a hardware-based fiscalization system, requiring certified devices and real-time data reporting to NAV. Key devices include fiscal printers and standalone cash registers. The e-Cash register rollout will support e-receipts, multiple payment methods, and cloud/app options. Mandatory features include item returns, EJ export, HUF/EUR support, and receipt referencing. Both POS apps and fiscal devices need NAV certification. The system ensures compliance, transparency, and is evolving toward digital flexibility.
Italy	Hardware	Italy mandates the use of certified RT devices for real-time or EOD fiscal reporting. Two types exist: RT Fiscal Printers and RT Servers. Devices must generate daily Z-reports, use XML v7.0 format, print QR codes on receipts, and support various payment types. Offline recovery is limited to 12 days. Technical checks are required every two years. From 2025, certified software may be allowed. Italy also operates a receipt lottery to boost compliance.
Lithuania	Hardware	Lithuania has a hardware-based fiscalization system undergoing major reform. A secure module now replaces the old fiscal memory, signing each receipt. Data is sent to the Tax Authority at predefined intervals. Devices are split into Secure Module and Virtual Module. POS and modules must be jointly certified. Full adoption is mandatory by July 2025. The system supports fiscal/non-fiscal receipts, invoices, and reports, improving security and compliance.
Montenegro	Software	The new fiscal law is in force since 2019. The usage of an electronic cash register that enables real-time communication with the tax authorities, through the fiscal server, is mandatory. This fiscalization system requires several registration processes to be conducted.
Norway	Software	Norway's fiscal regulations for cash register systems, fully enforced since January 1, 2019, mandate accurate recording and electronic documentation of all cash sales through a software-based fiscalization model to enhance tax compliance. The Cash Register System Act defines POS system requirements, prohibits certain functions, and requires system providers to submit a conformity declaration before selling or leasing a system. Key obligations include digital signing of transactions, SAF-T format data exports, daily Z-reports, mandatory POS printers, and compliance oversight by the Directorate of Taxes.
Poland	Hardware	From 2019, Poland is introducing a new type of fiscalization which implies that fiscal relevant transactions have to be sent to the fiscal authority through Internet for authorization. Accordingly, major novelty is the introduction of the on-line cash registers.
Portugal	Software	Portugal applies a software-based fiscalization system requiring POS/e-commerce software certification. Certified systems must export SAFT-PT files, sign invoices using RSA, and ensure secure access and logging. Businesses can transmit invoice data in real-time, upload SAFT-PT monthly, or use manual entry. A local contact is required for certification. Compliance involves store registration, number range assignment, and distributor reporting. Fiscal Solutions offers workshops, IFCM services, SAFT-PT uploads, and full local support.
Republic of Srpska	Hardware/Software	As of 2024, the Republic of Srpska uses a real-time electronic fiscalization system with mandatory components: PFR , ESIR , and a Secure Element. Transactions must be signed and sent to the Tax Authority online. The Operator of the Fiscal System is the only body allowed to certify L-PFRs and issue secure elements. POS apps must be certified, and recertification is needed after updates. Offline mode is allowed with LPFR and smart cards, for up to 5 days. The reform mirrors Serbia’s model and modernizes compliance and control.
Romania	Hardware	The last change of the Fiscal law regulation dates from November 2017. According to the fiscal legislative, communication and data exchange with ANAF, done by fiscal printer, is even more specifically defined. At the moment, in practise, there is still no automatic communication with ANAF.
Serbia	Software	Serbia moved from hardware- to software-based fiscalization in 2022. Real-time reporting is mandatory via certified POS systems. Two processors exist: V-PFR for cloud/e-commerce and L-PFR for stores with offline support. Receipts must meet legal structure and include QR codes and PFR signatures. Certification is required for POS and L-PFR, handled by local firms only. Though flexible and EU-aligned, the system is complex due to dual architecture, secure elements, and legal compliance demands.
Slovakia	Software/ Hardware	Slovakia uses a SW/HW-based online fiscalization system via e-Kasa, requiring real-time reporting of in-person sales. Businesses may use POS devices, mobile apps, tablets, or PCs, with Protected Data Storage for secure transaction records. Certification is required for POS apps and PDS, unless using pre-certified fiscal devices. Receipts include PKP, OKP, UDI, and a QR code. Online sales are excluded unless payment occurs on-site. Slovakia’s model ensures secure, certified, and flexible compliance with fiscal law.
Slovenia	Software	According to fiscal law, it is required to communicate all transactions paid with cash or cash-like payment media with the Tax Authority via the internet. Slovenia adopted this type of fiscal law at the beginning of 2016, and it is very similar to Croatian law.
Spain - Basque Region	Software	The Basque Country uses its own fiscalization system, TicketBAI, mandating real-time invoice reporting via certified software. All invoices must be digitally signed and sent online in XML format to provincial tax authorities. There are no specific hardware requirements, but digital certificates are required per device. Each province applies TBAI slightly differently, so businesses must adapt locally. Online sales are also covered. TBAI ensures transparency and positions the region as a leader in Spain’s digital fiscal transformation.
Spain- State Level	Software	Spain is preparing for nationwide fiscalization through the VeriFactu project, mandatory from July 2025. Businesses must switch to certified billing software that ensures data integrity, traceability, and real-time reporting to the tax authority. Invoices will require a QR code, unique ID, and secure storage. Two modes are allowed: VeriFactu and Non-VeriFactu . Strict penalties apply for non-compliance. VeriFactu marks a major shift in Spain’s digital tax strategy.
Sweden	Hardware	Since 2010, Sweden mandates hardware-based fiscalization using certified cash registers and control units. All cash and card transactions must be registered, and a control code must be printed on receipts. As of 2023, systems must support XML export of journal data. Daily Z-reports, return receipts, and non-sales activity logs are required. Devices and manufacturers must be registered and verified by the Swedish Tax Agency, ensuring transparency, real-time monitoring, and strict compliance with national fiscal laws.
Turkey	Hardware/Software	Turkey's fiscalization system integrates certified hardware and software, requiring online communication with the Tax Authority. Since 2018, New Generation Cash Registers have been mandatory, with options like all-in-one devices for small taxpayers, fiscal printers for POS integration, and software-based e-invoicing for high-revenue businesses. The 2022 E-Document System enables full digital fiscalization, replacing cash registers if requirements are met, while certification remains mandatory but exclusive to Turkish companies.