A Brief History

QR code stands short for Quick Response code, and it was first developed in Japan in 1994. The subsidiary Toyota lab named Denso Wave was its first home. Unlike a barcode, made out of one-dimensional lines and storing only about 80 characters of data, QR code is two-dimensional and has the capability to hold 100 times more data.

The barcode was created some 42 years before QR code came into existence, and in spite of proving its worth, the world needed something new – a better replacement. So it is no wonder that Denso Wave started to mark their car parts with QR codes so they could be easier tracked.

Naturally, it took a while for QR codes to take off, at first they weren’t the standard and were more or less limited to industrial applications only. However, in 2010, this completely changed.

The reason why it took so long for QR code to become a standard was exclusively because of the user experience. To scan a QR code, a user had to download a specific app made just for this. Considering a QR code contains the information in the form of a URL, the hassle wasn’t enough.

Most of the media in the USA and Europe kept slandering QR codes as a hit-or-miss technology, failing to realize the potential it has, and just how important it would become within a decade in the future.

On the other side of the world, in China, QR codes have already become a standard in technology and many companies started using it for their payments. And in 2014, the West realized just how big the concept is. And the rest is history; many apps such as Snapchat, Spotify, and Facebook started using QR codes first, and the food industry followed. However…

TaxCore Knew Better

Even when the majority in the West didn’t embrace QR codes, Data Tech International saw their potential. We realized that the QR code could be a great ally in the fight against the grey economy, tax evasion, and Vat Fraud. Moreover, it is the perfect shield that protects consumers’ rights, if used correctly.

TaxCore implemented QR in a way that it would appear on every single receipt issued, containing all the important information. The QR code contains a URL, which when scanned, shows a customer the digital version of their receipt. The receipt issued is very clear, and a customer even has the option to report it, should there be anything seemingly irregular.

By scanning the QR code, consumers are indirectly helping the Tax Authority know if a business tried to hide it somehow, without forwarding it to them properly. Although, TaxCore makes sure that the chances of this happening are extremely small.

Touchless shopping – a vital ally during the pandemic

What seems to be even more important nowadays, is the fact that using QR codes allows for touchless shopping, especially in times of pandemic.

Even though receipts should always be issued to a customer, as demanded by laws in all the countries TaxCore successfully works in, this doesn’t need to be physical. There is always the option where a customer can simply scan the QR code with their phone and have the digital version of the receipt on it. Thanks to that, the chances of transmitting the virus become minimal. We can easily achieve this by using the “customer-facing screens.” As far as B2B transactions go, they can also be fully digital, eliminating the need for a paper invoice.

In addition to that, if businesses motivate their customers to switch to cards instead of cash, the chance of infection will be minimal, which is crucial for the current situation.

QR Code Is the Future

This year, QR code has truly proven its worth, making touchless shopping easier than anyone could have imagined. And even once the pandemic is over, there will be so many new situations where we can put this technology to good use. Data Tech International will keep exploring in an effort to finding out how to put new technology to good use.

The post QR Code and Its Pandemic Importance appeared first on Dti.

The reasons why a country may be suffering from low tax collection can be many, and they vary from nation to nation. Taking into consideration all the countries and all the different problems they’re facing, TaxCore brings a revolutionary change that can greatly help.

Auditing

With TaxCore, governments and tax authorities receive a platform that is 100% transparent and safe. It is a platform that allows them to monitor taxpayers and their businesses in real-time. For the most part, this does help tax authorities oversee if a certain business isn’t registering sales or isn’t issuing receipts regularly.  TaxCore digitally signs every fiscal receipt so it’s very easy to track them and their validity. But every so often, transparency and proper monitoring aren’t enough – so TaxCore’s DTI solution came up with a new solution to the problem, the proof of audit feature.

Proof of Audit serves as a confirmation from the tax authority system has stored all the invoices issued with a particular digital certificate in its database. The proof of audit, designed by DTI, is very flexible, and it doesn’t limit business in any way. It is issued after each fiscal invoice (remote audit) or after a group of delayed invoices reach the database (local audit). Delayed invoices may occur due to an unexpected loss of internet connection. TaxCore allows to save these invoices and to audit them once the internet connection comes back. Proof of audit also confirms that exactly the same data that was entered in the taxpayer’s SDC was transferred to the tax authority database.

Use of the mini-blockchain technology with the proof of audit

By using blockchain technology to link all fiscal invoices issued with a particular digital certificate, TaxCore, will instantly notice if there is a gap in the invoice submission sequence (e.g. if one or more invoices from that specific certificate chain are missing). Should this happen, the taxpayer will not receive their proof of audit. Instead, TaxCore’s DTI will wait for all the invoices to arrive at its database. Additionally, TaxCore issues all these invoices with this particular digital certificate. Only then will the database send a proof of audit to the taxpayer.

The system can delay the proof-of-audit too if so needed. However, there is a preset limit to this, and if not obeyed, the system will block the taxpayer from issuing any new fiscal invoices. The purpose of this setup is to motivate taxpayers to report regularly. Even if a taxpayer suffers a lack of internet connection which prevents normal invoice submission, the system will still inform them that the preset limit is approaching. In this case, a taxpayer can perform a local audit so that they could obtain a proof-of-audit.

The proof of audit function works in a way that it takes the new data and moves backward through the mini-blockchain (link by link). This confirms that TaxCore has accurately recorded all of the data contained in the SDC and its associated Secure Element. Therefore, nothing is missing, no data can be manipulated, and the whole system works perfectly on all ends.

A seamless process

The whole process is seamless, fully automated, and works continually (although this does depend on the taxpayer’s internet connection to an extent). All a taxpayer really needs to do (to know that they are fully tax-record-compliant) is to make sure that the on-premises-Sales Data Controller has a stable connection to the internet. Even if the connection stops for a short period of time, it won’t impact a taxpayer at all.

Thanks to this new proof of audit technology, TaxCore’s DTI ensures that tax fraud is nearly impossible as it motivates taxpayers to report regularly. Moreover, it helps tax authorities easier be in touch with taxpayers and their business practices. This helps build a transparent environment and significantly increases tax revenue, which helps for a country’s prosperous economy.

The post Proof of Audit – Created by DTI for TaxCore, 2nd Year in Production appeared first on Dti.

Retail businesses are completely revamping their stores and their entire business model, by making their environment safe zones. This completely changed the shopping experience, but it is mandatory and precautionary.

So, how do supermarkets achieve minimum contact within their premises exactly? Well, different retailers went for a different approach:

• Minimizing the communication between the cashier and the customer
• Completely eliminating the need for a cashier and encouraging consumers to use self-checkouts
• Additionally, minimizing the communication between customers and self-checkout attendants as much as possible
• Supporting physical distancing with proper signs put in the store and according to the law of the local government

While some retailers have taken the more expensive path of investing into the grab-and-go and delivery technologies, some are going for a less radical approach.

Others, however, have decided to give it a go with what they already own, only adjust it to the current epidemic. The good thing is that these changes are minor and somewhat easy to apply, therefore, the business model is not suffering too much.

As an example, here is how NCR is helping retailers who use their products deal with the new set of epidemic rules:

1. Touching the self-checkout screen as little as possible.

A self-checkout will now start working the moment a customer scans the first item, this eliminates the need to touch the screen. The same model is used when it comes to paying – the customer can simply insert the money into the bill slot without having to touch the “pay” button.

Similarly to this, the self-checkout will process an electronic payment the same moment a customer enters their credit or debit card. This goes without having to touch the “credit card payment” on the screen.

2. Advising consumers to use e-wallet whenever possible. Using e-wallet technologies eliminates the need to touch the screen. Sometimes, retailers develop their own e-wallet services which help speed up the process. However, more often, retailers will use the already established and safe services such as ApplePay or GooglePay.
3. Recommending self-checkout attendants to touch the screen as little as possible. For this cause, NCR developed an attendant program which minimises the need for an attendant interference in the self-checkout lane.

However, none of these options makes real touchless shopping, a reality.

How TaxCore helps?

Unfortunately, countries that have partnered with DTI for implementation of TaxCore also took a hit from the Covid-19 epidemic. As a result, shop owners are finding themselves in need of a touchless shopping solution. Luckily, TaxCore as a platform supports it.

Next to retailers in Samoa and Fiji advising that customers use cards whenever they can to eliminate the need for cash, according to legislation around e-invoicing the need for paper receipts is eliminated. Considering that cash and paper fiscal receipts have been proven to be one of the largest ways of the virus transition, it is important to find an alternative.

With TaxCore, receipts come with the capacity of being fully digital and instantly verifiable. If a retailer invests in the so-called “customer-facing screens,” they will still abide by the law while protecting the health of the local population. This screen can show the QR code which hides the Government URL to the digital version of the receipt in it. Once the customer scans this QR code, the receipt will be shown on their phone.

As for B2B transactions, the invoice can be forwarded via e-mail, also eliminating the need for physical, paper invoices, making touchless shopping, possible.

By using digital versions of fiscal receipts, combined with motivating your customers to pay using cards or e-wallets, you are greatly eliminating the chance for infection when it comes to both your employees and consumers.

It is vital to mention that many retailers worldwide have secured their self-checkouts and cash registers with an anti-bacterial coating. This coating eliminates most bacteria and must be changed only once every 6 months. It is an advisable option to further minimize the effect of the pandemic. Stay safe!

The post Touchless Shopping – Adapting to the New Normal appeared first on Dti.

To put it simply, some states control their taxpayers much more, leading to a drastically lower percentage of tax evasion. However, could this be the sole reason why the EU lost 11.2% of the total VAT revenue last year? And is the European Union the only one facing this problem?

Can Technology in Taxation Help?

Many believe that current tax collection laws aren’t suitable for the 21st century anymore, deeming them completely outdated. The problem mostly hides behind the fact that governments and their authorities are simply not present enough; which allows for intentional misinterpretation of tax laws.

However, governments are starting to step in by using technology as one of the main assistants to help them in the process of modernization. Moreover, they are changing their stance as to why some taxpayers avoid their legal obligations – could it be that the whole process is tiresome and overcomplicated for an average Joe?

By using technology, tax authorities are able to establish a more transparent system, where avoiding paying taxes becomes very difficult. Additionally, this very technology can help taxpayers comply with local laws much easier, and it opens a window of opportunities on how to make the whole process faster. Most importantly, tax authorities worldwide can now digitalize the list of their taxpayers which they can further share with any jurisdiction necessary.

Some Countries Are Already Adapting

A handful of countries have already seen the potential in digitalizing their tax and fiscal systems. It was companies like Data Tech International (DTI) that helped these countries digitalize and easily track every single fiscal receipt via a certain system as a result. In the case of DTI, we developed a platform called TaxCore to allow tax authorities track any possible illegal activities or tax evasion performed by taxpayers.

Overall, it is important that the government implementing a new system addresses the problem, comes up with a definite solution, and informs the population about it. It should also come up with very good arguments as to why the new digital system is good and works both ways. After all, society needs to benefit from these changes as much as the government.

The Future of Technology in Taxation

It is only a matter of time before all the countries start taking advantage of everything technology can do for them. The fiscal systems most of the governments still uphold to are out of touch with modern times.

Unfortunately, most jurisdictions believe that the whole process of abandoning an old but functional system for a new one is long and wearisome. This is the main reason why a system that was supposed to be abandoned 20 years ago is still in use.

Fortunately, DTI is already proving to many that this transit from old to new isn’t complicated nor lengthy; instead, it can be very fast, efficient, and beneficial.

The post Technology in Taxation – Washing off the Grey Economy appeared first on Dti.

It was very fortunate for Data Tech International to present VAT Monitoring System (VMS) project to distinguished 135 CATA delegates from 30+ countries. VMS was in the state of acceptance by the our client Fiji Revenue and Customs at the time, who was the host of the conference, which made our presentation even more convincing, for participants to see a working solution. We were scheduled for the panel on the second day:

Role of technology in improving the delivery of taxpayer services: The session discusses some of the best practices in delivering taxpayer services and the key building blocks of a robust taxpayer services division/unit including staff competencies, evaluation criteria/benchmarks and best practices. Use of technology as a key enabler for delivering quality taxpayer services will be discussed through sharing of country experiences. 

Session Chair: 

• John Tsangaris, Commissioner of the Tax Department, Ministry of Finance – Cyprus 

Speakers: 

• Goran Todorov, Managing Director and Ivan Pavlović, Product Manager, Data Tech International 
• Babatunde Fowler, Executive Chairman, Federal Inland Revenue Service, Nigeria 
• Pauline Bre, Taxation Commissioner, Internal Revenue Commission – Papua New Guinea

In his opening remarks, FRCS CEO, Mr Das, congratulated CATA and its members on its anniversary that commemorates 40 years of global partnership before declaring the 39th CATA Technical conference officially open.

39th CATA TECHNICAL CONFERENCE

The post 39th CATA TECHNICAL CONFERENCE appeared first on Dti.

Since the first official appearance of computerized electronic sales suppression in the ’80s in the state of Connecticut, the FTA has shed light on this phenomenon and gave the prime spot to the elephant in the room for the first time on their agenda.

The list of attendees was wide and both government and non-government officials attended. A lot of revenue compliance officers from states such as Alabama, California, Arkansas, Idaho, and many other states took part in the conference.

Mr. Goran Todorov from Data Tech International and Mr. David Deputy from Vertex presented together on the topic “Securing Fiscalization via Digitization.” The point of their paper was on how much tax-loss there was from tax evasions and how in most countries these units can be measured in billions; the USA being no exception.

You can find out more on this paper here

Using modern technology is probably the most powerful tool against tax evasion and tax fraud. Moreover, there were even a lot of big, international companies that took advantage of poor tax collecting laws in many countries. Proving the point that no one is quite immune to this. With systems like TaxCore, illegal practices like these can be fully brought to a halt as tax authorities have the full picture of how abiding corporations are.

The post DTI in FTA Technology Conference appeared first on Dti.

DTI and Avatar had a mission, and it was to explain that digitalisation of invoices can greatly help tax authorities fight tax evasion and VAT fraud. The point was to show many benefits of such systems, starting from small things such as motivating the consumers to ask for their receipts.

Many African countries tend to struggle with this as consumers still didn’t grow a habit to always expect a receipt. This helps the grey economy a lot as many irregularities remain under the radar; completely undetected by tax authorities.

This serves as a firm proof that real-time transaction data from a taxpayer to a tax office is possible. Although many authorities over the world are still quite used to the systems devised at the beginning of the 21^st century, bringing technology into this story can only help taxpayers comply.

What seemed to be the most important was the fact this solution comes at no or very low cost. This was the perfect inspiration for both African and the rest of the countries to consider implementing these new models into their system.

SEE AGENDA HERE- ZM2015-103

The post DTI’s ATAF ICT Conference Attendance appeared first on Dti.