Home Fiscal Electronic Devices Management System (FEDMS)

Fiscal Electronic Devices Management System (FEDMS)

Electronic Fiscal Devices are main technological strategy recognized and used in many countries as necessary system to enable Tax Authority to establish trustful and auditable traces of each invoice, formalize and improve invoicing culture, bring more taxpayers into formal sector and boost revenue as ultimate goal of the reform.

The main objectives of the Electronic Fiscal Devices system are:

  • Introduction of mechanisms that provide authenticity and integrity of invoice data
  • Transmission of all invoices to central repository in Tax Authority
  • Standardization of invoice format
  • Transparency between Tax Authority and taxpayer
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System design and principles

This system is robust, transparent, simple to use and audit and applicable to all types of businesses, provides multiple advantages:

  • Increased Compliance
  • Reduction of parallel/fake invoices
  • Proper record keeping
  • Better monitoring and control
  • Faster Detection of irregularities and anomalies
  • Targeted and efficient audits
  • Improved Operational Efficiency and effectiveness
  • Effective and efficient decision making by the Policy makers
  • Promotion of paying Tax fairly and responsibly
  • Increase in revenue collection

The system design is based on following design principles:

  • Automated remote monitoring of all receipts
  • Collection of all receipt's data
  • Standardized receipts with digital signatures and QR code stamps for authenticity and data integrity
  • Multiple ways of auditing data
  • Transparency for Tax Authority and taxpayers
  • Applicable to all types of business
  • Easy to use
  • Easy to audit

The system is covering all applicable security and quality standards. The system is comprised of:

  • Electronic Fiscal Devices
  • Electronic Fiscal Devices Management System
  • Server infrastructure
  • Network for data exchange.

System workflow

The operation workflow, in general, includes registration of each transaction and transmission of all data to the server, as shown on following diagram:



System workflow

EFD device will:

  1. Store transaction data for each transaction into internal memory
  2. Use standard algorithms for signing and encrypting data, in compliance with international standards
  3. Provide information in encrypted form when sending data to server or copying internal data to a removable  memory storage device in case of the local audit activation
    1. server provides encryption keys through activation process
    2. each device will be assigned with dedicated key
    3. compromising security of one device will not compromise security of the whole system
  4. Only authority is able to decrypt data
  5. Security keys and internal data are stored in memory that cannot be modified or read by unauthorized persons
  6. Provide means to verify receipt by generating digital signature;

 

Server will:

  1. Exchange data with each EFD
  2. Decrypt received data
    1. using encryption keys as assigned per device during activation
  3. Verify integrity and validity
    1. using digital signature calculated by device based on signature key assigned per device during activation
  4. Save data to database
  5. Provide means for data analysis and reporting
  6. Provide means for integration of data with external systems