The Italian Revenue Agency has begun testing the new 'Cash Registers and POS' system, which automatically compares data from fiscal cash registers and payment terminals. The system's goal is to detect potential discrepancies that may indicate unreported transactions. In the first phase, businesses will receive letters informing them of any inconsistencies found and giving them the opportunity to provide explanations. Financial sanctions for entities that fail to rectify the situation will only be imposed in the second stage. The initiative is part of a broader fight against tax evasion, particularly in the retail and service sectors. The system is ultimately intended to cover all entities required to have a fiscal cash register across Italy.
Automatic Data Verification
The implemented system automatically links and compares data from fiscal cash registers (recorders) and payment terminals (POS) in real-time. This aims to detect potential discrepancies between the amount recorded on the receipt and the amount actually charged to the card.
Warning Phase Before Sanctions
The procedure envisions a two-stage approach. First, businesses will receive so-called compliance letters, informing them of detected discrepancies. They will have the opportunity to provide explanations or correct declarations before penalties are imposed.
Fight Against Tax Avoidance
The system is a key tool for the Italian tax administration in combating the practice of not reporting card payment transactions. It is intended to help reduce the shadow economy and increase tax revenues from the service and trade sectors.
Consequences for Businesses
Companies that, after receiving a letter, do not explain the discrepancies or make corrections will be subject to administrative sanctions. The amount of penalties is not precisely specified in the sources but is to be imposed in accordance with existing tax regulations.
The Italian tax administration has begun the operational phase of a new control system that automatically and in real-time compares data from fiscal cash registers and payment terminals (POS). The initiative, referred to as 'Cash Registers and POS', aims to combat tax avoidance practices by not reporting some card-based transactions. The mechanism involves digitally linking two key sources of data on a company's turnover: the fiscal recorder, which issues receipts, and the banking system handling cashless payments. This gives the Revenue Agency the ability to cross-check this information and identify any discrepancies.Italy has been grappling with the problem of a large shadow economy for years, estimated at several percent of GDP. Authorities have introduced a series of measures, including the obligation to accept card payments and increasingly strict digitalization of tax settlements, to limit cash transactions, which complicate control. The procedure for dealing with businesses has been planned as a two-stage process and is of a warning nature. According to the articles, entities where the system detects inconsistencies will first receive so-called compliance letters. These documents will contain information about identified discrepancies between the amount recorded on receipts and the amount booked by payment terminals in a given period. In this way, businesses will have a chance to independently explain the situation, for example by pointing out technical errors, or to voluntarily correct previously submitted tax returns. This stage is educational and corrective, aiming to achieve proper settlement without immediately imposing penalties.
Only in the second phase, if an entity ignores the letter or does not provide satisfactory explanations, will the Italian Revenue Agency initiate proper administrative proceedings, which may result in financial sanctions. The amount of potential penalties is not discussed in detail in the analyzed materials but will be based on general tax law provisions regarding underreporting of income. „Sanzioni sui Pos, parleranno le lettere di compliance” (Penalties on POS, compliance letters will speak) — The system is being implemented gradually and is currently in the testing or initial launch phase. Ultimately, it is to cover all businesses in Italy that are required to use fiscal cash registers, which primarily concerns the retail, hotel, restaurant, and service sectors. The initiative has met with mixed reactions from business circles. On one hand, its role in ensuring fair competition is emphasized, by eliminating dishonest players who evade taxes. On the other hand, smaller companies fear additional administrative burdens and potential penalties for technical errors that may not stem from bad faith. Authorities emphasize that the system is primarily preventive and supportive, serving greater transparency for the entire SME sector. Its effectiveness will be assessed based on the number of detected and explained discrepancies and the increase in tax revenues from the covered industries.