Company Services

CURRENT RESULTS OF TAX FRAUD PREVENTION WITH THE EKASA AND VAT CONTROL REPORTING SYSTEMS

By implementing the eKasa system,we provided the analytical and business team of the Financial Directorate (SK) with a tool that can analyze the obtained data (cash receipts, information from onsite inspections, verification of cash receipts by citizens, …) in the form of aggregated information with the ability to link the specific situations with findings, thereby helping to detect fraud.
The eKasa system is currently generating and storing more than 6 000 000 receipts daily. The market analysis shows that approximately 5% of all the issued cash receipts are intentionally manipulated, and daily tax evasion is estimated at € 360,000, which means that the state budget is € 10,000,000 VAT income short per month.
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Comparative analysis eInvoice

THE OBVIOUS NEXT STEP

The situation is no better when it comes to tax frauds associated with the invoicing between business entities. The introduction of the eInvoice project is expected to increase tax collection by at least 5% (based on the data provided by tax authorities in the relevant EU countries after the introduction of similar solutions). By applying a 5% increase in tax collection in the amount of € 8,078.84 million, an increase in VAT collection by € 400,000,000 per year can be expected.

eINVOICE WILL ELIMINATE THE FOLLOWING ISSUES

  • INVOICE RELATED TAX FRAUDS
  • FAKE INVOICES
  • UNPROCESSED INVOICES
  • ACCOUNTING ADMINISTRATIVE BURDEN
  • MANUAL MISTAKES

WHY?

The goal of eInvoice is to create a digital copy of the invoice and load the data into the central database of the Tax Authority. A centralized information system and unique invoice identifiers will prevent VAT fraud when issuing invoices while increasing the effectiveness of tax inspections. The issuance of a new invoice will record a digital copy of the invoice into the information system of the Tax Authority, which will generate a unique identifier for each invoice issued. The business entity issuing the invoice will be able to obtain the identifier by using the services of the Tax Authority portal or through a software module integrated into the economic software of choice.

 

The assigned identifier will be clearly indicated on the invoice and will be represented by an alphanumeric string or QR code. After typing the unique identifier or by scanning the QR code into the system, it will bring up the digital copy of the invoice stored in the central database and verify its details, contents and the ID number of the entity that issued the invoice, preventing any modifications. This service will be publicly available on the Tax Authority website. Business entities will also indicate the assigned unique invoice identifier when submitting the VAT control report. For the needs of small businesses, the system will include several functionalities such as the invoice issuing module and recording of issued and received invoices by which we’ll complement the functionality of the Virtual Cash Register system.

BENEFITS

  • Effortless tax collection
  • A transparent and effective system of invoice evidence
  • Verification of physical invoices in the eInvoice system - a digital copy of the invoice is automatically stored in the Invoicing system
  • Automatic VAT report generated by the Tax Authority, all necessary data are stored in a central database under financial administration control
  • Acceleration and streamlining of tax inspections
  • Saving entrepreneurs as well as the Financial Administration and other state institutions time and financial costs in processing information related to invoices and performing tax inspections
  • Reduction of economic crime (especially prevention of issuing fictitious invoices, modification of invoices), prevention of VAT fraud
  • The Tax Authority has access to all issued invoices and is able to see in real time whether they have been accepted or rejected, the system also automatically evaluates suspicious entities

IMPLEMENTATION

Allexis, s.r.o. as the supplier of the eKasa system is experienced in monitoring transactions and can guarantee fast and efficient implementation of the eInvoice system.