Fiscal memory devices are electronic devices used for control of a country's tax revenues. Currently they are widely used in many countries around the world, including Russia, Bulgaria, Serbia, Romania, Republic of Macedonia, Albania, Poland, Moldova, Bosnia and Herzegovina, Kazakhstan, Armenia, Georgia, Kenya, Tanzania, Malawi and Ethiopia. Fiscal memory devices have following categories:
- electronic cash registers, fiscal cash registers
- printers, fiscal printers
- E-Signs, Electronic signature devices
both of which contain fiscal memory. and Electronic Journal (EJ), Fiscal memory itself is a kind of memory that is certified by appropriate government body. This Encrypted module is usually in the form of an IC on the Electronic circuit. Electronic journal, is a kind of encrypted memory module which is readable using the fiscal device (ETR,FP). These memory modules are the normal SD and MicroSD cards but in an encrypted format which can not be read like normal formats on a personal computer. Once this Electronic Journal is initialized in a fiscal device, it is assigned a fiscal serial number so as to assure it's not reused in another fiscal device.
Distribution of fiscal memory devices
The use of fiscal devices in the world can be divided into three main categories:
- Offline operating electronic fiscal devices with built-in fiscal memory (so called first generation fiscal devices);
- Electronic fiscal devices with Internet connection capabilities to the revenue authority central server (so called second generation fiscal devices);
- Electronic fiscal devices with Internet connection capabilities and latest use of various encryption methods for digital signing of each issued receipt (third generation fiscal devices).
Due to the main disadvantages which the first generation fiscal devices are having i.e. easy manipulation, lack of control from the tax office, no printing of fiscal receipts etc., the second generation fiscal devices are becoming more and more popular and many countries are changing their fiscal requirements and moving to Internet enabled fiscal devices (mostly using GPRS network) and implementing the so-called online Information and Tax Collection System.
Such kind of second generation fiscal devices are eliminating most of the problems which their predecessors were having. All fiscal cash registers and fiscal printers are connected online through the Internet to the central server and sending their reports and/or fiscal receipts in predefined time intervals. However these devices still have some black holes which are used by the majority of tax payers who are cheating and not paying their taxes. Such are: printing of fake fiscal receipts, manipulation of daily reports before they are sent to the tax office etc.
This is why the third generation fiscal devices were introduced and running successfully currently in several countries in the world. Devices of this kind are very similar to the second generation devices but an additional software security is used for digital signing of every fiscal receipt. The third generation fiscal devices are eliminating all previously known issues and giving additional security to all tax agencies which are using such systems. Each fiscal receipt is digitally signed using unique signature printed either in the form of a 2D Bar Code or various characters depending on encryption rules in place. The tax administration can easily and quickly check if the issued receipt is authentic and correct.