Fighting technlogy with technology
The Swedish State Treasury had a $2 billion tax revenue deficit every year due to widespread industrial use of sales suppression techniques that facilitated tax fraud and evasion in a number of business sectors. This challenge prompted the Government to launch a Cash Register Act in 2009-2010. The legislation require anyone selling goods and services in return for cash or card payment to use a cash register connected to a certified tamper proof control unit, commonly known as a “black box”.
The subjects of the law are all business in retail, hospitality and service sectors with a few exceptions, for example micro-businesses. Unique identification of cash registers is required and the possession of a cash register must be declared at the Tax Agency. The control unit is sold together with the cash register as a complete system; the tax payer is paying for the costs of upgrading or replacing of equipment.
The technical requirements are publicly notified and implemented by open competition among technology providers. They require that the control unit must be certified and integrated with the cash register, where sales data is secured by encryption software key provided by the Tax Agency. The Agency retrieves data with an SD-card offline in on-site inspections and is unlocked with a software key when taken into audit analysis.
The certification of fiscal control units is made by an accredited Swedish certification body; SP Technical Research Institute of Sweden.
In 2013 the Swedish Tax Agency published an impact evaluation of the new system’s first three years of operation; it resulted in a €1 billion tax revenue boost and it was concluded that sales suppression techniques was eradicated from the marketplace. It had restored a level playing field for all businesses in the marketplace.
During 2017 the Government will prepare an addition to the current regulation in order to upgrade and accommodate it the changing landscape of cash register equipment and new technology such as new payment models and mobile, cloud-based POS.
Here you will find more detailed information (in Swedish) from the Swedish Tax Agency about the requirements on cash registers and certified control units.
CleanCash® is Retail Innovation’s fiscal control unit for cash registers in Sweden. Our units are installed with 90 000 cash registers out of a total 170 000. Learn more about product details here.