Navigating fiscalization regulations in Europe

Fiscalization refers to the legal framework and technical measures implemented by governments to ensure the accurate recording and reporting of financial transactions for tax purposes. This system is designed to combat tax evasion and improve transparency in business operations by mandating the use of certified devices, software, or procedures that securely document sales data.

Fiscalization requirements typically include the use of fiscal devices like cash registers or software integrated with tax authorities, the issuance of compliant receipts, and the real-time or periodic transmission of transaction data to governmental systems. These measures help create a more secure and reliable tax ecosystem, benefiting both businesses and regulatory bodies.

However, Europe’s fiscalization requirements vary significantly from country to country, reflecting diverse legal frameworks, technical infrastructures, and enforcement approaches. In this article, we’ll explore the fiscalization frameworks of five key European markets (Germany, Austria, Spain, Italy, and France), providing a comprehensive overview of their requirements and upcoming changes.

What is the goal of fiscalization?

Fiscalization is the cornerstone of modern tax compliance systems, ensuring that every financial transaction is securely recorded and reported to tax authorities. At its heart, fiscalization involves implementing technology-driven measures, such as certified software, secure devices, or real-time reporting systems, to safeguard the integrity of financial data.

By standardizing how transactions are recorded, fiscalization:

• Combats tax fraud: One of the primary drivers of fiscalization is to reduce tax evasion, particularly in cash-heavy sectors. By mandating secure and tamper-proof transaction recording, fiscalization ensures that all taxable revenues are accurately reported.
• Increases transparency: Fiscalization systems enhance visibility for tax authorities, enabling real-time monitoring or prompt access to transaction data. This increased transparency fosters greater trust in the system and ensures accountability across all market participants.

Depending on country-specific regulations, fiscalization solutions can be hardware-based, such as tamper-proof cash registers or certified telematic devices, or software-based, involving cloud solutions or certified applications. Hardware-based approaches often require physical devices to be installed at the point of sale, while software-based systems leverage (cloud) technology for secure and flexible data transmission. Countries such as Germany, Italy, or Austria also allow for a combined approach of hardware and software options.

🇩🇪 KassenSichV in Germany: Tamper-proof recording systems

Germany introduced its fiscalization system in 2020 through the Kassensicherungsverordnung (Cash Register Security Ordinance, or KassenSichV). The regulation mandates that all cash registers must be equipped with a certified technical security system (TSS), which can be hardware or cloud-based. The TSS securely records each transaction and generates a digital signature to prevent manipulation. These signed transaction records are stored and must be available for inspection by tax authorities.

Key aspects of fiscalization in Germany

• Cloud and hardware options: Businesses have the flexibility to choose between cloud-based TSS such as fiskaly SIGN DE and hardware-based options, which are installed directly on cash registers. Cloud-based solutions are maintained and updated by the service provider, making it easy to stay compliant with regulatory changes after the initial integration.
• TSS certification: The TSS must be certified by the German Federal Office for Information Security (BSI). This ensures that the security mechanism meets stringent national standards for data integrity and protection against manipulation.
• DSFinV-K format: Transaction data must be recorded in the standardized DSFinV-K format (Digital Interface of the Tax Authorities for Cash Register System), making it easier for auditors to review and analyze data during tax inspections. This standardization ensures that all cash register data is complete, traceable, and verifiable by the tax authorities.
• Receipt issuing obligation (Belegpflicht): Businesses are required to issue a receipt for every transaction, regardless of the payment method. This obligation ensures that all sales are recorded and properly reported.
• POS reporting obligation (Meldepflicht): Since January 2025, all businesses operating in Germany must report electronic recording systems (cash registers, EU taximeters, and odometers) and TSS details to the tax authorities. This registration ensures that all systems used for fiscal recording are registered and compliant with regulations.

🇦🇹 RKSV in Austria: A robust digital signature approach

Austria’s fiscalization system was introduced in 2016. The Registrierkassensicherheitsverordnung (Cash Register Security Regulation, or RKSV) relies on digital signatures to secure transaction data and ensure its integrity. It mandates businesses to use tamper-proof cash registers to record all transactions securely. A key feature of Austria's system is the requirement for digital signatures: every transaction must be signed using a secure signature creation device linked to the cash register.

Key aspects of fiscalization in Austria

• Individual record-keeping obligation (Einzelaufzeichnungspflicht): Businesses operating in Austria are required to keep individual records (i.e. the ongoing and individual recording of all income and expenditure).
• Receipt issuing obligation (Belegerteilungspflicht): Similar to other countries, businesses are obligated to issue a receipt for every cash payment containing detailed information on the transaction in order to create transparency and prevent tax fraud.
• Certified cash registers (Registrierkassenpflicht): Businesses are required to use cash registers that meet specific technical and security standards to ensure accurate recording of sales transactions. Each cash register must have a unique identification number registered with the Austrian tax authorities via the FinanzOnline (FON) portal. This ID links the device to the business, providing a transparent audit trail.
• Digital signature: The “Signaturpflicht” (§ 131b BAO) requires receipts to be digitally signed using a secure signature creation device, ensuring that any alterations to the data are immediately detectable. This digital signature guarantees the authenticity of transaction records.
• QR codes on receipts: Every receipt issued by a compliant cash register must include a QR code. Customers and auditors can scan this code to verify the validity of the receipt.

🇪🇸 SII, Verifactu and TicketBAI in Spain: Software-based immediate supply of information

Spain’s fiscalization framework focuses on pure cloud fiscalization, and the fiscal landscape is quite complex, as Spain has five different tax authorities across the country, with various legislations impacting different types of companies.

Key aspects of fiscalization in Spain

For companies with a turnover exceeding 6 million euros:

Since 2017, fiscal data reporting is mandatory for companies with over 6 million euros of turnover through the Suministro Inmediato de Información (SII) system. SII mandates the digital submission of VAT-related transaction data to the Spanish tax agency (Agencia Tributaria, AEAT). 

For companies with a lower turnover, there are or will soon be three different legislations, depending on the five tax authorities across Spain:

• Verifactu: With specifications recently being greenlit in October 2024 by the National Tax Authorities (Agencia Tributaria, or AEAT), Verifactu systems regulation focuses on creating a standardized invoicing system. Verifactu software adheres to Spain's Anti-Fraud Law and the regulation outlining the standards billing software must meet, including the capability for real-time communication with the AEAT. Compliance with Verifactu requirements will apply to businesses and freelancers across Spain from January 2026 onwards, except for those with tax residency in the Basque Country and in the Navarra region. It's important to note that all billing software operating in Spain must comply with Verifactu's technical requirements by July 2025.
• TicketBAI: It’s the regulation promoted by the Basque Country’s regional tax authorities (Vizcaya, Guipúzcoa, and Álava). Businesses are required to comply with TicketBAI, a software-based fiscalization system that ensures all invoices are digitally signed and reported to local tax authorities. In Bizkaia, TicketBAI is part of a broader tax control framework called BATUZ. TicketBAI is being gradually implemented from 2021 to 2026, and although the regulation is the same, each province has its own technical requirements to comply with. That’s why it's important to be aware of the specific specifications when operating in different regions.
• Navarra’s legislation: The tax authorities in this region are currently developing new legislation similar to TicketBAI and Verifactu, requiring companies to send all their transaction fiscal data to tax authorities in real-time. While there is no official timeline for this legislation yet, it is expected to be approved in 2026.

🇮🇹 Italy on the way to cloud-based fiscalization: Electronic receipts without RT

Italy’s fiscalization regulations are centered around the "documento commerciale" (the commercial document, previously known as scontrino elettronico or electronic receipt) and mandatory e-invoicing systems, both designed to increase transparency and combat tax evasion. Since January 1, 2020, businesses are required to issue electronic receipts for all transactions and transmit the data to the Italian Revenue Agency (Agenzia delle Entrate, AdE) using certified hardware devices known as “Registratori Telematici” (RTs) or the online commercial document procedure made available to every merchant by the AdE on the invoices and receipts (“Fatture e Corrispettivi”) portal. But Italy is currently opening the door to cloud-based fiscalization too, and this will offer a more flexible, affordable, and convenient way for businesses to operate and comply in the country.

Key aspects of fiscalization in Italy

• Certified telematic registers: Businesses are required to use certified electronic devices (Registratori telematici, RT) to securely record and transmit transaction data. These certified cash registers generate unique identifiers for each receipt and must ensure secure recording and daily digital transmission of transaction data and telematic fees to the Italian Tax Agency (Agenzia delle Entrate, AdE).
• Electronic receipts: Businesses must issue electronic receipts for all transactions, regardless of the payment method. This replaces traditional paper receipts with digital ones, transmitted electronically to the AdE for storage and auditing, using certified devices.
• Data transmission: Transaction data must be transmitted to the tax authorities for the continuous monitoring of businesses activities. If the taxpayer uses the online commercial document procedure as offered through fiskaly SIGN IT Lite, the transmission will be done in real time. Alternatively, when using an RT device the data are sent at the end of the day, at the latest within 12 days from the recording day. This oversight helps reduce tax evasion and ensures proper VAT collection.
• Electronic invoicing: Italy's legal framework for e-invoicing, outlined in the Legislative Decree 148/2018 and Decree 55/2013, focuses on public authorities and other entities. In compliance with the European Directive 2014/55/EU, B2G e-invoicing became mandatory for central administrations. Initially applicable only to ministries, tax offices, and national security agencies, the requirement was extended to all public entities in 2015. In January 2019, Italy became the first EU country to mandate e-invoicing at a national level for B2B and B2C transactions.
• New options for cloud-based fiscalization: Defined requirements outlining the cloud fiscalization process in Italy are expected in early 2025.

🇫🇷 Certified cash register software in France

France has taken a software-centric approach to fiscalization with its 2018 regulation requiring certified cash register systems. The goal is to combat VAT fraud while ensuring that businesses maintain accurate and unaltered transaction records.

Key aspects of fiscalization in France

• Use of certified software: Since January 1, 2018, businesses subject to VAT and conducting B2C sales must use software certified by accredited bodies (such as NF525) or provide equivalent proof of compliance. These systems must guarantee data inalterability, data security, data retention, and auditability.
• Inviolability and traceability: Cash register software must guarantee that sales data cannot be modified retroactively. All transactions should be traceable, with clear records of their origin and alterations.
• Electronic invoicing (Facturation électronique): Electronic invoicing has been mandatory for B2G transactions since January 1, 2020, with earlier rollouts for larger enterprises starting in 2017. B2B electronic invoicing and real-time reporting will become mandatory for businesses in a three-phased approach until January 2026.
• Receipt requirements: Paper or digital receipts must include specific mandatory fields, such as date and time of the transaction, total amount (including VAT breakdown), and unique identifier or invoice number. As part of the Anti-Waste Law (Law No. 2020-105 of 10 February 2020 or “Loi anti-gaspillage”), merchants only have to provide printed receipts when asked explicitly by the customer and  customers must be offered the option to receive receipts electronically.

Conclusion

Fiscalization is a critical aspect of tax compliance for businesses in Europe, ensuring transparency and fairness. By understanding the specific requirements in Germany, Austria, Spain, Italy, and France, businesses can better navigate the complexities of compliance.

We know that understanding complex requirements can be tricky. That’s why fiskaly helps businesses and software providers to simplify compliance through easily integrated cloud-based solutions and expert technical support.