Grey economy appeared as a burning problem for many countries of the world ever since the creation of fiscal devices and fiscal receipts. Moreover, giving and asking for fiscal receipts took some time turning from culture into a habit.

A common mistake most countries made at one point was enforcing customer compliance instead of simply rewarding it; a method that later proved much more efficient. So how does one convince consumers that demanding a fiscal receipt accelerates the economy, and which strategy proved to be the best?

Creating a Fiscal Lottery

In most countries, providing a receipt to the buyer is already common; it is a part of nearly everyone’s daily life. However, there are still some countries and cultures where asking for a receipt can often be deemed unusual, or even frowned upon. This creates perfect soil for the development of what’s known as “the gray economy.”

For example, in the Independent State of Samoa, where Data Tech International was contracted by the Ministry of Customs and Revenue to implement Tax Invoice Monitoring System (TIMS), asking for a receipt can be embarrassing for consumers in more ways than one.

• The seller can get angry over the fact the consumer doesn’t trust them
• The consumer often feels blamed for “assisting the paper waste issue”

These are just two of the few examples where customers are afraid of asking for a receipt as many believe it is simply a worthless piece of paper. Indirectly, though, the tax office suffers a lot because of this mindset. If a customer is not handed out a receipt, it means that there probably isn’t one in the first place. This easily leads to TAX fraud because the tax office has no input into what goes through the register.

The Solution Hides in Digitalization

Data Tech International found the perfect way to both save paper wasted on fiscal receipts and motivate consumers to actually demand one after consuming goods. Introduction the Customer Compliance Award or simply CCA means awarding taxpayer’s consumers for simply scanning a QR code.

Using our TaxCore software, a cashier is able to create a receipt with a QR code on it which a customer can scan, and potentially win an award from a certain sponsor. Using the “everyone is a winner” model, society and country can benefit from more ways than one:

• Every customer becomes a tax auditor
• The model promotes tax compliance
• Transform the culture of receipt demand into a habit
• Raise the awareness of the EFD (Electronic Fiscal Device) presence
• Attract valuable sponsors to fill the award pools

Most importantly, though, this model isn’t there only to protect the tax office and customers, it also exists to help and promote investors and sponsors:

• It helps to create and maintain a good relationship between companies and consumers
• It creates positive publicity for TA
• Sponsors and investors can benefit from a good reputation of awarding consumers

Creating Awards with TaxCore

TaxCore offers a very simple and user-friendly platform that helps sponsors create awards for consumers. It can be anything from smart TV and smartphones to a simple dinner for two. In the end, it all depends on the sponsor itself.

The model proved to help many countries prevent tax fraud and tax evasion by educating the citizens on the importance of fiscal economy and asking for receipts. Moreover, it is a further reminder that rewarding your customers goes a long way towards a healthy economy.