Digital VAT/GST and Other Indirect Tax Administration for B2C Taxpayers Increase Tax Revenue Collection from Retail and Boost Consumer Demand for Valid Receipts info@taxtech.digital www.taxtech.digital Table of Content Online management of electronic cash registers for tax administrations helps boost consumer demand for valid receipts and increases retail tax collection Foreword: technology approach in fighting tax evasion and fraud in retail Risks mitigation and increased tax revenue collection OECR implementation roadmap Retail industry in the global economy and the role of cash in tax evasion Online Electronic Cash Registers (OECR) concept and key capabilities Case study: DTT helped to increase national retail VAT collection by 37% Traditional approach is not sufficient to combat tax evasion in retail Public control over receipts handling Exhibits Foreword Technology Approach In Fighting Tax Evasion And Fraud Many tax administrations around the world face specific forms of tax evasion: understated revenues using unaccounted cash (mostly present in cash-based transactions in B2C) and inflating deductions through fake invoices (mostly in B2B). Tax evasion and fraud can be facilitated by the habits of the traditional cash economy and by the growth of sharing (or online) economy. In the past, identifying underreported revenue and overstatement of tax deductions has been difficult for tax administrations, requiring a lot of time and manual effort. This is changing. Many fiscal authorities are now implementing technology solutions to detect taxpayers’ misconduct. Two separate approaches are usually used to solve these problems at the country level: 1. Revenue underreporting Implementation of an Online Electronic Cash Register management solution for retail tax administration in near real-time as detailed later in this presentation. All POS transactions are reported “as soon as possible” to the central tax administrations and consumers are motivated to demand valid receipts from retailers to perform public control. 2. Overstatement of tax deductions Implementation of eVAT/e-Invoices management solution via mandatory reporting of all issued invoices/pro forma invoices and their cross-validation by central tax administrations. About Us Digital Tax Technologies (DTT) is an international expert in tax gap minimization, a trusted digital transformation advisor & solution provider for national tax administrations. We help tax administrations around the world to reduce the tax gap, improve tax revenue collection and reduce the share of the shadow economy. Our mission is to increase global fiscal transparency, improve tax compliance and administration, and ensure fair competition and welfare. Our team consists of experts with experience in digital tax administration advisory and implementation in various European, CIS, Middle East, and African countries. info@taxtech.digital https://taxtech.digital

1. Trusted Global Tax Gap Advisor &
Digital Solution Provider for Tax
Administrations
Digital VAT/GST and Other
Indirect Tax Administration for
B2C Taxpayers
Increase Tax Revenue Collection from Retail and
Boost Consumer Demand for Valid Receipts
info@taxtech.digital
www.taxtech.digital
G100

2. Table of
Content
Online management of
electronic cash registers
for tax administrations
helps boost consumer
demand for valid
receipts and increases
retail tax collection
2
Foreword:
technology
approach in fighting
tax evasion and
fraud in retail
Retail industry in
the global economy
and the role of cash
in tax evasion
Traditional
approach is not
sufficient to combat
tax evasion in retail
Risks mitigation
and increased tax
revenue collection
Online Electronic
Cash Registers
(OECR) concept and
key capabilities
Public control over
receipts handling
OECR
implementation
roadmap
Case study: DTT
helped to increase
national retail VAT
collection by 37%
Exhibits

3. Foreword
Technology
Approach In
Fighting Tax
Evasion And
Fraud
Many tax administrations around the world face specific forms of tax evasion: understated
revenues using unaccounted cash (mostly present in cash-based transactions in B2C) and inflating
deductions through fake invoices (mostly in B2B).
Tax evasion and fraud can be facilitated by the habits of the traditional cash economy and by the
growth of sharing (or online) economy.
In the past, identifying underreported revenue and overstatement of tax deductions has been
difficult for tax administrations, requiring a lot of time and manual effort. This is changing. Many
fiscal authorities are now implementing technology solutions to detect taxpayers’ misconduct.
Two separate approaches are usually used to solve these problems at the country level:
1. Revenue underreporting
Implementation of an Online Electronic Cash Register management solution for retail tax
administration in near real-time as detailed later in this presentation.
All POS transactions are reported “as soon as possible” to the central tax administrations and
consumers are motivated to demand valid receipts from retailers to perform public control.
2. Overstatement of tax deductions
Implementation of eVAT/e-Invoices management solution via mandatory reporting of all issued
invoices/pro forma invoices and their cross-validation by central tax administrations.
3

4. Transition To
Online
Electronic Cash
Registers
(OECRs)
Improves Fiscal
Transparency
and Tax
Compliance in
Retail (B2C)
4
The success of modern tax administrations is increasingly becoming dependent on access to
data flows, including in real-time.
One of the most important data flows for tax compliance purposes is information on retail
income. It is also one of the most important economic indicators, characterizing consumer
confidence and the health of the economy.
Cash registers provide a key source of original retail data for tax administrations and auditors.
Several Tax Administrations already started testing new solutions enabling online access to retail
sales data generated by online electronic cash registers equipped with secure fiscal data units
and transmitting data in real time to the tax systems.
Following successful pilots, legislation should be introduced mandating the use of online cash
registers in all retail businesses across countries through a phased implementation process.
In essence, online cash registers create a secure “internet of things” network providing Tax
Administrations with a continuous real-time flow of nationwide data critical for assessing tax
compliance and important statistics on economic performance and retail prices.
The introduction of the new online cash register system improves fiscal transparency and raises
tax compliance significantly. It is also facilitating the creation of a level playing field for fair
competition among retail businesses and retail solution developers as well as contributing to the
protection of consumers’ rights, reducing compliance burdens, and providing new opportunities
for businesses.

5. *) Sources: WTO estimates for trade, consensus estimates for GDP. 2018 5
Retail Industry in The Global Economy: A Large Share of
Taxpayers and a Small Share of Taxes Paid
The retail industry is characterized by:
Significant percentage of global GDP and
one of the key contributors to GDP’s
growth
Substantial share of all businesses by the
number of employees
The major share of micro and small
businesses and a large share of self-
employed
Minor share in taxes and duties paid
The ratio of world merchandise trade volume growth to world real
GDP growth, 1981-2017 (Annual percentage change and ratio)*

6. Cash Remains the Most Widely Used Payment Instrument in
The World on All Continents
6
North America
Cash is used in over half of
transactions under $25, and more
than 60% under $10
South America
CiC* has risen by an average 62%
Only 45% of people have a bank account
and even fewer have credit cards
Europe
79% of POS** transactions were
in cash
CiC increased by almost 40%
Middle East
Cash on delivery is
the most used
payment method for
e-commerce
transactions in
many countries
Africa
The value of withdrawals
and the number of ATMs
is rising across all African
countries
CiC rose almost 40%
across reported countries
Asia
In many countries over 75% of
online purchases are paid for
by cash on delivery
CiC rose more than 45% in all
countries
Oceania
CiC rose year-on-year by
6% in Australia and 7% in
New Zealand, on average
@G4S World Cash Report 2018
*CiC: Currency in Circulation
**POS: Point of Sale
Figures represent the period from 2011-2016

7. Cash is a Fuel For Shadow Economy and The Source of
Many Risks for Governments, Retailers and Consumers
*) Risk of Handling Paper Currency in Circulation Chances of Potential Bacterial Transmittance, Janardan Lamichhane, Satish Adhikary, Prson Gautam, Rajani Maharjan and Bishal Dhakal Department
of Biotechnology, Kathmandu University, Dhulikhel, Kavre, Nepal. Nepal Journal of Science and Technology 10 (2009) 161-166
7
Business
Government
Rising costs of cash handling, processing,
and physical security
Black markets use cash to increase illegal
goods circulation, which leads to
manufacturers and tax collection revenues
decline
The use of cash is not transparent to
government bodies. One of the main
sources of funding for corruption and
extremism
Cash is driving a shadow economy with the
aim of avoiding tax and customs payments
Fiscal administration challenges:
A huge number of POS and ECRs to
control
Owner’s motivation to understate revenue
and overstate deductions
Tax base erosion
Decrease in the collection and losses of
taxes and excise duty revenues
Consumers
Cash can be counterfeited
Fairly easy to be lost or stolen
Currency notes might act as vehicles for
the transmission of potentially pathogenic
microorganisms*

8. Traditional Approach to the Retail Tax Administration:
Manual, Lengthy, Prone to Errors, and Expensive Process
8
Long delays in tax reporting due to
the lack of online data and human
resources in the tax administrations
Very timely, expensive and
error-prone as requiring a lot of
human and other resources
MANUAL CHRONOMETRIC SURVEYS
OF CASH PROCESSING AT POS
Increased complexity
and costs for both, tax
administrations and
taxpayers
Taxpayers are forced to
bring cash registers to tax
administrations for the
manual inspection
ANNUAL MANUAL ADMINISTRATION OF
MILLIONS OF OFFLINE CASH REGISTERS
Long time to substantially
decrease the circulation of
cash with the traditional tax
administration approach
ATTEMPTS TO INCREASE SHARE
OF NON-CASH PAYMENTS
The use of cash has been on the
rise globally before the pandemic
and non-cash payments still have
a minor share in many countries

9. By the mandatory transfer of all digital receipts from all cash
registers to the tax administrations
Advantages for the Tax Administrations
Tax Administrations Can Increase Revenue Collection from Retail
Without Overhauling the Core Tax Processes
9
Online Electronic Cash Register (OECR) Management System for retail
tax administration:
Uses online cash registers for fiscal data collection, recording, and
transmission to tax administrations and consumers in real-time
Supports optional Fiscal Data Operator (FDO) model as an
intermediary for faster time to value
Provides integration with the Government’s Tax Administration
Information System(s)
ECR equipment should support real-time and deferred receipts transfer
to the tax administrations & consumers and robust fiscal data
protection to avoid data tampering and fraud
Public control: encouraging the consumers to demand receipts and
check their validity via mobile applications in return for cashback,
discounts, tax refunds, and other incentives
Online administration of retail taxes with automated
monitoring of violations, fraud detection and response, data
analytics, and reporting in near real-time
Growth in tax and excise revenue collection. Lowering the
financial, operational, and lawbreaking risks for the
government. Decreased costs of tax administration
Online monitoring of all cash registers, retail prices, goods
availability, and retail compliance with the government
regulation
OECR combination with digital track & trace solution for some
product categories will force illegal products out of circulation
with an additional increase of tax and excises collection
Responsible citizens are motivated to establish a public control
for receipts to help authorities combat illegal transactions and
goods circulation in retail

10. Online Electronic Cash Registers Solution Benefits
10
For Retailers
Versatility and compatibility with various types of cash registers from smartphones to specialized
devices
Ease of installation and integration with POS systems
Lowering cost of tax compliance, new opportunities to improve consumer loyalty
For Tax Authorities
Improved retail tax revenue collection
Big data, analytics, ML, and AI for standard & ad-hoc reporting and fraud detection
Direct feedback from citizens, new opportunity to introduce new digital services
For Citizens
Additional source of monetization via cashback and discounts in exchange for scanned receipts
Collection of electronic receipts helps to analyze cash and digital personal expenses

11. Electronic Online Cash Registers Implementation in Retail
Can Increase Tax Collection up to 150%
11
Hard copy or
digital fiscal receipt
with QR code
OECR
Retailer
Consumer Tax Administration (TA)
Digital
fiscal receipt and
other data for TA
Receipt
scanning
mobile app
=
IF
1. OECR prints/sends a fiscal receipt to
the consumer (either hard or digital
copy) and the Tax Administration
(digital copy in near real-time)
2. Consumer has the incentive to send
his copy of the receipt to the Tax
Administration for verification
3. The tax administration receives
transaction data from both the
merchant and consumer and can
verify a match
Optional
Fiscal Data
Operator
(OFD)
OECR sends unaltered fiscal data to tax authorities in
real-time or near real-time for automatic tax base and tax
payable calculations
The OECR Concept
1
2
3
How it Works

12. Online Electronic Cash Registers Provide Near Real Time
(NRT) Fiscal Data to Tax Administration and Consumers
12
OECR with the optional
Fiscal Printer
Fiscal storage
Fiscal Data
Data
Consumer
Payment (cash, cards
etc.)
Paper receipt
Data (Real Time)
Data
Digital receipt
to registered consumers
Digital receipt
by consumer’s demand
Mobile app
POS
Verifies receipts in the TA system in return for
bonuses, cashback, tax incentives, etc.
3rd party loyalty
service providers
Tax
incentives
Fiscal Data Operator
(FDO, optional)
Data (NRT) with
offline mode
Data
Data
Data
Tax Administration
Tax administration and
fiscal control

13. Online Electronic Cash Register Simplified Data Model
* The need for an intermediary for data transfer depends on the parameters of the project, the number of cash desks, checks, etc. 13
Consumer
Fiscal Data Operator
(FDO) *
Tax Administration
Retailer: OECR owner
Point of Sales (POS)
TIN
Address / URL
Online electronic cash register
(OECR)
OECR registration number
Payment
Receipt
Fiscal data & documents
Fiscal data format (FDF)
Fiscal module (FM)
FM serial number
Data example:
OECR registration report
Registration update report
Shift opening report
Receipt (sale, return)
Adjustments
Shift closing report
Fiscal module closing report
Acknowledgement of successful
data transmission to TA

14. Fiscal Data Flow
14
Retailer
Consumer
Fiscal Data Operator
(FDO)
(optional)
Tax Administration
Payment
Hard copy or
digital fiscal receipt
Data
Digital receipt
Confirmation
Receipt validation
and complaints requests
Responses with
verification results and
digital receipts on demand
Demands fiscal
receipt from
retailer and files
complaints to the
tax administration
if omitted
Automatic tax
administration
and control
Processes the
fiscal data from
retailer
Registers and
runs online ECRs
OECR

15. OECRs for e-Commerce and Shared Economy
15
Consumer
Payment (cash, cards
etc.)
Data
Data
Fiscal Data Operator
(FDO, optional)
Data
Data
Digital receipt
to known consumers
Digital receipt
by consumer’s demand
Mobile app
Internet Shop /
Marketplace
Cloud OECR supports only
issuing of digital receipts
Fiscal data
storage
Fiscal Data
Data
Checks in receipts in return for bonuses, cashback,
tax incentives, etc.
3rd party loyalty
service providers
Tax
incentives
Cloud ECR Provider’s Data Center
Data
Data
Tax Administration
Tax administration and
fiscal control
Including cross-border online trade

16. Modern OECRs and Additional Services for Retailers
16
MORE THAN JUST CASH REGISTERS
A wide variety of OECR form factors are available. From
smartphones and tablets with additional card readers
for SMEs to professional retail equipment for top retail
chains
They support complete retail management solutions
with point-of-sale automation, inventory, loyalty,
reporting, gift cards, customer profiles, purchase
orders, eCommerce, etc.
Online Electronic Cash Register as a Service
(OECRaaS) is also available from the 3rd party cloud
providers to support online retailers and cross-border
trade

17. Online ECR Solution Key Capabilities
17
Modern architecture and design
Automatic firmware updates
Extensible functionality
Cloud and on-premises setup
App store to offer 3rd party solutions
Automatic data transfer to
the tax administration
QR code is printed on receipts for scanning by
consumer’s mobile application to support public
control
Works with electronic & paper receipts
A digital version of every receipt is transferred to
the Fiscal Data
Operator / Tax Administration
Ensures that data are unchanged and protects
the data during the transfer
Supports real-time and deferred data transfer
modes
Provides customer receipts itemization. Supports
catalog of retail goods
Compatible with tax administration and retail
revenue control systems
Builds consumer confidence and trust
Works on wide range of smartphones,
tablets, PCs, Smart POS devices and
supports fiscal printers
Easy registration/withdrawal of the POS
system at the Tax Administration online
portal

18. Inevitability of control
Public Demand and Control are Important in Influencing
Retailers to Hand Out Valid Receipts
18
Automatic alerts
to Tax
Administration
Consumer demands a receipt
from the retailer in exchange for
incentives
Tax Administration
confirms validity of
scanned receipt
3rd party loyalty services providers
interchange receipt and consumer data
with with banks, brands and retailers
Cashback, discounts, tax refunds and other incentives
Open API
Consumer scans receipt
and sends it to the TA for
validation
The retailer did not hand out a receipt or
The receipt has not been validated by the
tax application
Every consumer could be a
public controller
Retailers can’t conspire with all
consumers in attempts to evade receipts
and to forge public control’s results
Retailers can’t avoid
The power of the crowd
Automatic workflows to
launch tax administration
processes
Historical data,
reporting, AI
Less paperwork.
Improved retail tax
revenue collection
My
Receipts
If required by legislation, each receipt generated by online cash registers has a Quick Response (QR) code that enables customers to verify the transaction by comparing it to the
information maintained by the tax administration

19. Consumer Tax Administration (TA)
3rd party loyalty service
providers
Brands, Retailers, Banks
Downloads official tax mobile
app to scan paper receipts
Develop free receipt scanning and public
control app for consumers
Develop loyalty program apps with access to
receipt database
Pay for access to the user base of the 3rd
party loyalty providers or build their own
Asks and receives a receipt at POS Ask consumers to scan receipts via mobile
app and send it to TA or FDO for verification
Encourage consumer to scan receipts via
loyalty app instead of tax app
Provide cashback, discounts and other
incentives to consumers in exchange for
loyalty and transactions
Scans QR code from
the paper receipt
Verifies paper receipt’s scan sent by
consumers
Encourage consumer to create a user profile
if he wants to get cashback and discounts
Requests digital receipts
from e-commerce provider
Provides open API for the 3rd party
developers to access receipt database
Sell ads to brands, retailers, banks…
Files a complaint if the receipt has not been
handed out by the retailer
The Ecosystem to Grow Public Demand and Control for
Receipt Validation
19
My
Receipts
Tax mobile app

20. Customer Journey Map for Retail Customer (Consumer)
20
The Person Retail Consumer The goal: To Get the Best Shopping Experience & Deals
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
Actions
Downloads official tax
mobile app or loyalty app
to register receipts and
collect incentives
Pays for goods or
services
Gets the paper or
electronic receipt from
the retailer
Wants to save receipts
for future analysis,
collect cashback,
discounts, tax deduct…
Opens app and scans
QR code on the paper
receipt
If doubt that the receipt
is valid or it is missing,
files a complaint via the
app
Gets an official
response
Collects cashback,
discounts, promos, tax
deductions, participates
in promo & lotteries via
the app
Wants to withdraw
cashback to the banking
card
Contact
points
Tax Administration web
site
Loyalty app web site
App store, Google Play…
Point of sales at retail
store
Message from internet
retailer with e-receipt
Tax mobile app
Loyalty program app or
website
Tax mobile app
Loyalty program app or
website
Tax mobile app
Loyalty program app or
website
Tax mobile app
Loyalty program app or
website
Feelings,
thoughts
Depends on the customer
experience on the websites
Depends on the
customer experience
with the retailer in shop
and checkout
Depends on the
customer experience
with the app
Depends on the
customer experience
with the app and the
number of apps to use
Depends on the
customer experience
with the app and the
number of apps to use
Depends on the
customer experience
with the app and the
limitations of
withdrawing
My
Receipt
s

21. Public Control Implementation
21
Public awards for being an
active citizen
Tax refunds
Bonuses for the spendings
and loyalty
How to motivate consumers to demand valid fiscal receipts? Implementation
Tax Administrations may provide tax incentives for
product categories to stimulate consumer spending in
health, education, sport…
Receipt verification is the touchpoint with consumers.
Banks, consumer goods manufacturers, and retailers
may provide discounts and cashback via verification
apps saving on the government’s budget
The more activities consumers perform, the more
bonuses they will collect, which in turn motivates
them to be more active
Tax Administration
Banks, manufacturers,
retailers
Government
Consumers

22. Advantages for the Taxpayers
22
Better tax compliance
Reduction of compliance burdens
Enhanced consumer protection
Small retailers can get better data
and analytics on turnover and
shopping behavior
Producers of consumer goods in
combination with the Trask & Trace
system will be able to reduce
counterfeiting and grow revenue
and profits
Banks simplify scoring and make
loans more affordable for small &
medium businesses and self-
employed
Third-party retail service providers
may have a new channel to expand
their loyal customer base
Consumers will have access to
cashback, discounts and gifts from
manufacturers, retailers, banks, and
tax administration

23. Roadmap for the Implementation of the National OECR
Solution (1st Stage)
23
Analysis of local regulations related to the cash registers and tax administration
Identification of key stakeholders, their roles and responsibilities
Development of a concept for replacing existing cash registers (waves of implementation)
Development of system architecture with or without fiscal data operator(s)
Determination of which information security standards to use (national and/or international)
Development of the business case and OECRs implementation plan
2
months
3
months

24. Past
Present
Cash registers
Online cash registers
Internal accounting Tax-return Manual audit
Data transfer in near real-time
Automatic accrual and withdrawal of taxes, analytical reporting & fraud detection
Tax Big Data
What’s Next: Dramatic Simplification and Modernization of the
National Tax System: From Offline to Online, Big Data and AI
24
Future
Machine learning / AI for predictive tax administration
Additional government and 3rd party services for the taxpayers
Tax Services Cloud, Digital Ecosystem, and API Economy
AI

25. Exhibits
25

26. About Us
Digital Tax Technologies (DTT) is an international expert in
tax gap minimization, a trusted digital transformation advisor
& solution provider for national tax administrations.
We help tax administrations around the world to reduce the
tax gap, improve tax revenue collection and reduce the share
of the shadow economy.
Our mission is to increase global fiscal transparency,
improve tax compliance and administration, and ensure fair
competition and welfare.
Our team consists of experts with experience in digital tax
administration advisory and implementation in various
European, CIS, Middle East, and African countries.

27. Experience and Contacts
27
We are a global team of tax and digital experts working with tax administrations,
global tax consultants, and top technology providers on the most important
aspects of the digital transformation of national tax systems.
Our key areas of expertise are:
Digital transformation of tax administrations and transition to the real-time
economy for the tax gap reduction
Implementation of digital track & trace solutions
Implementation of online cash registers
Effective taxation of platform sellers and self-employed taxpayers in sharing
and gig economies with eVAT / eInvoicing solutions
Advanced analytics/Big Data/AI for value-added tax administration
Tailor-made and off-the-shelf software product development
End-to-end IT solutions design, implementation & support in cooperation with
top software & hardware vendors and tax consultants
Contact us for
more details
info@taxtech.digital
https://taxtech.digital

28. 28
Terms and Abbreviations
Online Electronic Cash Register — cash register
capable of sending fiscal data periodically or in
real-time to the tax administration in secured mode
Product authentication — validation of products as
genuine
Product marking — affixing of secure and non-
removable identification markings to the products
or product packs
Tracking — locates products
Tracing — determines the origins and destinations
of goods
DTT — Digital Tax Technology company
ECR — electronic cash register
FDO — fiscal data operator
OECR — online electronic cash register
OECRaaS — online electronic cash register as a
service (OECR in the cloud)
POS — point of sale
PiC — products in circulation
TA — tax administration
T&T — track & trace
TTO — track & trace operator
TIN — taxpayer identification number

29. Cash in Circulation by Countries
29
The share of payments using instruments alternative to cash by number and amount of transactions in Sweden reached almost 90%.
*) Converted at end-of-year exchange rates.
Source: «Bank for International Settlements/Committee on Payments and Market Infrastructures / Statistics on payment, clearing, and systems in the CPMI countries // Notes and Coin, bis.org,
Report October 2017, Figures for 2016 year.
2012 2013 2014 2015 2016
Australia 65 60 58 55 58
Brazil 92 87 83 58 71
Canada 70 68 65 59 65
Hong Kong SAR 39 44 46 48 54
India 215 210 229 251 196
Japan 1059 903 817 857 915
Korea 51 60 68 74 81
Mexico 65 70 72 72 69
Russia 253 254 157 117 145
Singapore 24 25 26 27 29
Sweden 15 13 11 9 6,9
Switzerland 71 77 72 76 80
Turkey 35 36 37 36 35
England 98 103 103 103 94
United States 1169 1241 1343 1425 1509
Eurozone 1238 1355 1267 1210 1218
Fig.1: Banknotes and coin in circulation, Total value (USD
billions, end of the year 2016)*
Fig.2: Value as a percentage of GDP (end of the year 2016)
2012 2013 2014 2015 2016
Australia 4,14 4,27 4,39 4,63 4,71
Brazil 3,89 3,83 3,83 3,76 3,70
Canada 3,76 3,75 3,79 4,08 4,17
Hong Kong SAR 14,82 15,91 15,64 15,50 16,86
India 11,86 11,54 11,6 12,25 8,79
Japan 18,43 18,83 19,03 19,45 19,96
Korea 3,94 4,42 5,03 5,54 5,94
Mexico 5,41 5,69 6,16 6,84 7,27
Russia 11,47 11,71 11,17 10,25 10,23
Singapore 8,12 8,37 8,87 9,55 8,23
Sweden 2,6 2,25 2,11 1,73 1,4
Switzerland 10,33 10,77 10,87 11,62 12,32
Turkey 3,93 4,21 4,24 4,49 4,83
England 3,58 3,54 3,58 3,68 3,91
United States 7,24 7,44 7,71 7,86 8,10
Eurozone 9,54 9,89 10,28 10,59 10,73
Average* 8,59 8,59 8,17 8,85 9,03
2012 2013 2014 2015 2016
Australia 2842 2567 2455 2313 2340
Brazil 460 434 411 282 346
Canada 2015 1944 1847 1647 1787
Hong Kong SAR 5432 6085 6283 6564 7341
India 177 170 181 196 151
Japan 8304 7088 6422 6739 7214
Korea 1012 1194 1350 1460 1584
Mexico 559 597 607 599 565
Russia 1765 1770 1094 800 989
Singapore 4485 4634 4762 4911 5242
Sweden 1547 1378 1109 872 690
Switzerland 8843 9544 8706 9214 9516
Turkey 457 465 481 458 444
England 1533 1602 1588 1583 1429
United States 3723 3925 4215 4400 4671
Eurozone 3678 4017 3749 3570 3579
Average* 1641 1643 1566 1558 1598
Fig.3: Value per inhabitant in (USD, end of the year 2016)*

30. Cash Usage Lessons Learned
* Source: John Bagnall – Reserve Bank of Australia, David Bounie -Telecom ParisTech, Kim P. Huynh – Bank of Canada, Aimeke Kosse – De Nederlandsche Bank, Tobias Schmidt – Deutsche
Bundesbank, Scott Schuh – Federal Reserve Bank of Boston, Helmut Stix – Oesterreichische Nation bank, «Consumer Cash Usage: A Cross-Country Comparison with Payment Diary Survey Data»,
December 2016 year.
30
Consumers in most countries make only a few
payments per day and most of the consumer
spending is made on small amounts.
Cash usage decreases depending on education and
income but varies by age categories.
In Austria and Germany, the use of cash is the most
intensive compared to other countries (large cash
balances and large average withdrawals)
The use of cash decreases as the transaction
amount increases. In all countries cash is used
mainly to pay for half of the small transactions
The use of cash depends on the type and place of
purchase
People trust cash; it’s free to use and readily
available for consumers, it’s confidential, it can’t be
hacked, and it doesn’t run out of battery power
At the same time, the overall level of ownership of
payment cards remains quite high. Along with cash,
only a small range of payment instruments are used
Increased use of cash is associated with lower
ability to pay by card at the point of sale

31. Online Cash Register Management System for Retail Tax
Administration: Key Features
31
Online cash registers for secured data
transmission from POS to the Tax
Administrations
• Transfer of every receipt for both cash
and cashless retail transactions
• Receipt’s itemization – Nomenclature,
quantities, prices
• Scanning of the bar codes on the
packages of the goods and registration
of withdrawal of the goods from
circulation at check-out
• Electronic and paper receipts support
• QR code on the receipt for consumer
scanning to check it against the online
data from TA (public control)
• OECR offline mode supported with the
deferred data transfer
• Simple OECR registration by the Tax
Administration
• Support of the national data protection
security standards and cryptography
Fiscal data operator (optional)
• FDO acts as a licensed operator who
collects data from retailers and sends it
to the Tax Administration
• Sales and support for OECRs
• Registration, connectivity, and
monitoring services for OECRs owners
• Additional services for retailers and
consumers (financial management,
accounting, business, fiscal reporting
and analytics, etc.)
Public control and tax deductions via
mobile application
• Consumers scan the QR code on the
paper receipt and check if it’s legal in
TA mobile app
• Consumers can file a complaint against
the failure to issue a correct receipt and
monitor the status
• Monetary compensation for receipt
submission from loyalty program
operators, banks, retailers, and brands
• Open API for the 3rd party application
developers to implement receipts
validations, integrations with loyalty
programs, discounts, rewards, etc.
Tax Administration Information System
• Real-time revenue control
• Benchmarking of retailers against the
similar businesses
• Analysis of the revenue dynamics.
Identification of deviations, non-typical
situations, and fraud detection
• Monitoring and execution of consumers
complaints received through the public
control
• Nationwide retail price monitoring for
the goods and services
• Ensuring availability/deficits of goods
and services in the regions

32. Solution Modules
32
We provide complete software and hardware solution that supports complete automation of OECR registration, capture and transfer of
fiscal data from POS to the tax information system, reporting and analytics.
Software interfaces for FM (fiscal module) to support different models of
cash registers (fiscal registrars, smart cash registers, autonomous cash
registers)
Fiscal Data Operator
Reception, verification and transmission of fiscal data and documents from
OECRs to the Tax Administration
Registration and authentication of the taxpayers – OECR owners &
OECRs
Cash register software for PC, Android and iOS mobile devices
Tax Information System
Reception, verification and storing of fiscal data and documents
Tax officer accounts to perform fiscal data analysis and administration
Online Electronic Cash Register
Mobile app for receipt scanning and verification by
consumers
Service for checking issued receipts and public control (complaints)
Smart card (hardware & software) or software in the cloud
Fiscal Module (FM)
Software for creating a fiscal module on smart-cards
Fiscal Module Issuer

33. Directory of Goods
33
Tax Information System
Centralized catalog of goods and
services
…
Product
Classifier codes
GTIN
Name
Tax rate
…
Sales analytics
Cash Register
Point of sale nomenclature
Catalog sections
…
Product
GTIN
Name
Tax rate
…
AIS FDO
…
…
…
…
…
…
…
Synchronization Synchronization
The solution maintains a unified catalog of goods and services for identifying product items in receipts. The
centralized directory provides the basis for deep analytics of fiscal and retail data

34. Special Tax Regimes
34
Fiscal data format adapts to special tax regimes in different countries
General tax regime
Simplified tax regime
*Other special tax system
Value Added Tax (VAT) Sales Tax
Support for different tax regimes allows you to apply different tax rates
< value >
< value >
< value >
< value >
< value >
< value >
< value >
< value >
Rate values are edited in the
system interface and applied in
all components of the solution
without additional modifications

35. Payments and Receipts
35
Sales / Returns
Cash / Cards
Types of Receipts:
Paper receipt
Electronic receipt:
by email
by SMS
verifiable in mobile application and website

36. Fiscal Data Transfer Process
36
Online Electronic Cash
Register (OECR)
FDO
OECR Software
Fiscal Module
Fiscal Processor
Crypto Module
Operations
Analytics
Tax System
Mobile App
for Consumer
Fiscal Processor
Crypto Module
Operations
Analytics
My
Receipts

37. Electronic Fiscal Device
37
Capabilities
Unique “signature” on each receipt (fiscal mark with hash key)
Encryption of fiscal data & documents
Supports different types of cash registers and cash register shift duration
management
Electronic Fiscal Device or Fiscal Memory Device is an electronic device certified by the government and used to record sales
data to calculate the tax owed by retailers to a country
Benefits
Additional level of security for fiscal receipts. A separate and permanent memory that cannot be accessed by anyone
other than the revenue administration
Authentication of the cash register users
Fiscal receipts can not be altered or changed by retailers. Any attempts will be visible to the Tax Administration

38. Data Protection
38
FMM – fiscal mark on fiscal message FSC – fiscal mark on acknowledgement
FMD – fiscal mark on fiscal document
Data protection tools use cryptography to safeguard information from unauthorized modifications
Online Electronic Cash Register (OECR)
Fiscal Module OECR Software
Generation FMD and FMM
Saving Fiscal Data (FD)
Generation FMA
Deleting FD
Creating FD
Sending FD to the FDO
Receiving of Acknowledgement
Verification of FMA
Fiscal Data Operator (FDO)
OECR Module Hardware Security Module
(HSM)
Receiving FD
Validation FMD, FMM
Recipient Report
Sending Acknowledgement
Generating FMD, FMM
Generating FMA

39. Smart Card as a Fiscal Memory Device
39
Dual-interface support: contact or contactless (NFC)
Cryptographic co-processor
Java Card 3.*
Available memory up to 344 KB
Stores up to 1000 offline receipts
Available in a sim and regular card size
Can be reused across multiple cash registers

40. Cloud Electronic Fiscal Device
40
Fiscal memory device available as a cloud service
Works 24/7/365 on a subscription basis
Provides secure online communication with the cloud by using AES-256 advanced
encryption standard
Very easy to connect, use and integrate with POS software and workflow
Does not require an on-premise fiscal memory device at the POS
Cloud Fiscal Memory FDO
OECR Software
Fiscal Module
Fiscal Processor
Crypto Module
Operations
Analytics
Tax System Mobile App
for Consumer
Fiscal Processor
Crypto Module
Operations
Analytics
My
Receipts
3rd Party
OECR SW

41. Online Electronic Cash Registers (OECRs) Available in Many
Forms
41
Web / Mobile / Desktop (PC) Electronic Cash Register with unique Serial Numbers for each instance
Data transfer to local or cloud Electronic Fiscal Devices (EFD)
Fiscal documents transfer from EFD to Fiscal Data Operator or Tax Administration
Offline mode to store electronic versions of fiscal documents in the EFD’s memory/transfer by email
Fiscal printers support for handing out fiscal paper receipts with QR codes and fiscal marks

42. Desktop / Mobile Versions
42
Desktop and mobile versions (cross-platform software)
Support Local and Cloud Electronic Fiscal Devices
POS workflow automation supports:
Device and taxpayer registration
Opening & closing register shifts
Fiscal registration of receipts with line items, prices,
discounts, taxes, refunds, corrections
Cash deposits / withdrawals
X-report, Z-report
Offline mode supported if online connectivity is not
available

43. Web Version
43
Web browser version with mobile support
Works with local and cloud Electronic Fiscal
Devices
Supports POS workflow automation
Multi-user support (multitenancy)
Ideal for e-commerce including cross-
border trade

44. Mobile Version
44
Android (5.0+) and iOS (11+)
Supports local and cloud Electronic
Fiscal Devices
Supports POS workflow automation
Ideal for distributors, delivery, and
other field services

45. Types of Online Electronic Cash Registers
45
Display: 2.7 inches, 6 lines
Cash Drawer Connection: No
Network connection: Ethernet, Wi-Fi 2,4 GHz
Width of receipt tape: 58 mm
Print module resource: 50 km (~500 thousand checks)
Power supply: from a battery, a power supply
Battery Life: 8 hours
Smart Cash Register Fiscal Registrar
Autonomous Cash Register
Display: No
Cash Drawer Connection: Yes
Network connection: 2G/3G, Bluetooth or Wi-Fi (via add-on
module)
Width of receipt tape: 80/58 mm
Print module resource: 50 km (~500 thousand checks)
Power supply: from a power supply
Battery Life: No
Display: 7 inches, 1024x600 pixels, vertical orientation
Cash Drawer Connection: Yes
Network connection: Ethernet, Wi-Fi 2,4 GHz
Width of receipt tape: 57 mm
Print module resource: 50 km (~500 thousand checks)
Power supply: from a battery, a power supply
Battery Life: 5 hours (provided - 1 receipt in 5 minutes)

46. Fiscal Data Operator
46
User account management for
retailers
History of fiscal documents
transferring
Sales statistics and reporting
Electronic receipts (SMS / email) for
consumers

47. Tax Information System
47
Account management for the tax officers
History of fiscal documents transferring
Detailed fiscal analytics and intelligence to support
tax administration, audits, and reviews
Aggregation of fiscal data and calculation of tax
payments

48. Tax Information System
48
Country dashboard for tax inspectors and
auditors
Retails sales and tax revenue by taxpayers,
regions, tax regimes, and time periods (year,
quarter, day)
Retail and fiscal KPIs, reports and analytics

49. Directory of supported OECR models
Directory of taxpayers with risk ratings
Automated registration, renewal, and de-
registration of taxpayers and OECRs
Automatic taxpayer risk score based on:
Anomalies in sales dynamics
Citizens' complaints
Filed and confirmed violations
Resolving of violations
Handling citizens’ requests and complaints
Automated planning and conducting of OECR
reviews
Tax Information System
49

50. Mapping taxpayer locations:
Name, TIN, address, tax regime
Number of registers
Sales statistics
Fiscal statistics (number of receipts, revenue,
VAT…)
Tax Information System
50

51. Scanning of QR or manual data entry for
receipt verification in the tax database
Receiving and storing electronic receipts
Filing a complaint against the seller's refusal
to introduce a fiscal receipt
Mobile Application for Receipts Validation by Citizens
51

52. Trusted Global Tax Gap Advisor &
Digital Solution Provider for Tax
Administrations
info@taxtech.digital
www.taxtech.digital
© 2022 Digital Tax Technologies LLC. All rights reserved.
The information herein is for informational purposes only and represents the current view of DTT LLC as of the date of this presentation.
Because DTT LLC must respond to changing market conditions, it should not be interpreted to be a commitment on the part of DTT LLC, and
DTT LLC cannot guarantee the accuracy of any information provided after the date of this presentation.
DTT LLC MAKES NO WARRANTIES, EXPRESS, IMPLIED, OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.