It is expected that by February 2020, Zanzibar – a semi-autonomous region of Tanzania – will become one of the first regions in the world that allows its businesses or even street merchants to issue digital receipts for transactions via a smartphone.
Zanzibar Revenue Board together with the Ministry of Trade, Industry and Marketing are partnering with a consortium of Norwegian and Lithuanian IT companies to develop a Virtual Fiscal Device Management System.
Virtual Fiscal Device, developed by NRD Companies and Algoritmų Sistemos, provides technically innovative approach to transparency and accountability which ensures safe transfer of sales data from businesses to tax authorities in real time without requiring to purchase of dedicated devices. The data can be safely transferred using an app on smartphones or tablets. Furthermore, in contrast to Physical Fiscal Devices, the Virtual Fiscal Device is being designed from its foundation as a secure software and the data stored in such Virtual Fiscal Device will be encrypted, which minimises the risk of data tampering.
According to Arnoldas Jankūnas, the CEO of ETRONIKA, part of NRD Companies, use of Physical Electronic Fiscal Devices is burdensome for businesses not only due to the financial aspect, but also due to constant need for maintenance, repair, updates, employee training and so on. The devices also create additional compliance monitoring requirements for the tax administrations, which must ensure the certification of devices, purchase additional equipment to register the Devices and respective software and inspect the physical devices to make sure they are not being manipulated.
"Introduction of Virtual Fiscal Devices allows to achieve the same goals of Electronic Fiscal Devices but with reduced costs and greater efficiency. Since the developed Virtual Fiscal Device Solution will be easily replicable in other environments, we expect that many governments around the world will be able to benefit from this solution"- commented Mr Jankūnas.
About NRD Companies
NRD Companies is a global information technology and consulting group of companies specialized in governance and economic digital infrastructure development. The group specialises in development of national registries and information systems, digital and m-signature solutions, digital platforms for the financial and retail sectors, digital platforms for state revenue collection, information distribution, banking, digital licensing, digital documentation, and other economic digital infrastructure solutions.
About ETRONIKA, part of NRD Companies
ETRONIKA is Nordic FinTech company, offering digital platforms for finance and retail sectors, mobile payments solutions, digital services for point-of-sales terminals and other solutions. The company is based in Vilnius, Lithuania and is a part of NRD Companies.
About Algoritmų Sistemos
Algoritmų Sistemos develops smart city management and tax information systems, national tax and payment administration systems, e-health, social security, environmental protection, solutions for the education sector and other e- services and administration systems.
All of the aforementioned companies are controlled by INVL Technology – Nasdaq Vilnius listed closed-end investment in IT Businesses Company. INVL Technology managed companies operate as a cluster and implement joint projects in more than 50 countries worldwide.