How to Implement Electronic Fiscal Reporting (Fiscalization)

IMF How To Notes, November 6, 2023

Source details

Fiscalization refers to the process of automated reporting of a taxpayer’s business activities to the tax administration.
When implemented as an integral part of compliance risk management processes, fiscalization:
- Contributes to an improvement in tax compliance by making it easier for taxpayers to voluntarily comply.
- Discourages taxpayers who may choose to not report their business transactions.
Fiscalization alone will not address all tax compliance risks.
This how-to note provides practical guidance about the case for fiscalization and implementation approaches, including good practices and practices to avoid in relation to the key dimensions of fiscalization: data collection, data analysis, integration with compliance risk management, consumer engagement, and implementation.

Tax administrations are increasingly seeking opportunities to enhance their access and use of data to improve the management of tax compliance risks.
There has been a worldwide trend to implement electronic fiscal reporting (fiscalization) to achieve better access to transactional data.
Effective fiscalization requires integration with compliance risk management rather than being deployed as a standalone measure.

Data collection
- Fiscalization centers on automated reporting of business activities to the tax administration.
Data analysis
- Collected fiscal data should be analyzed as part of CRM processes to identify compliance risks and target interventions.
Integration with compliance risk management (CRM)
- Fiscalization delivers the greatest benefit when embedded into CRM processes to support voluntary compliance and enforcement strategies.
Consumer engagement
- Fiscalization can improve voluntary compliance through easier reporting and consumer-facing transparency measures.
Implementation
- The how-to note provides practical guidance on implementation approaches, including practices to adopt and practices to avoid across the key dimensions listed above.

The how-to note discusses:
- Good practices in relation to data collection, data analysis, CRM integration, consumer engagement, and implementation.
- Practices to avoid in those same dimensions.
(The page overview summarizes that the note includes practical guidance; specific good and bad practices are detailed in the full how-to note.)

Authors: José Maria Pires, Stephen Howlin, Frank van Brunschot
Publication date: November 6, 2023
Series: How-To Note No 2023/003
Issue: 003
Volume: 2023
Pages: 27
DOI: https://doi.org/10.5089/9798400251641.061
Stock No: HTNEA2023003
ISBN: 9798400251641
ISSN: 2522-7912
Subjects: Compliance risk management, Data collection, Economic and financial statistics, Economic sectors, Fiscal reporting, Public financial management (PFM), Revenue administration, Tax administration core functions, Tax policy, Tax return filing compliance, Taxes
Keywords: business activities, Compliance risk management, CRM processes, Data collection, discouraging taxpayer, electronic fiscal devices, Fiscal reporting, fiscalization, Global, IMF Library, implementation approach, Tax administration core functions, tax compliance, Tax return filing compliance

IMF How To Notes — How to Implement Electronic Fiscal Reporting (Fiscalization), November 6, 2023

How to Implement Electronic Fiscal Reporting
- How to Implement Electronic Fiscal Reporting (Markdown version)
- How to Implement Electronic Fiscal Reporting (PDF)