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E-Fiscal Devices (EFD)

What is Electronic Fiscal Device? (EFD)

Electronic Fiscal Device (EFD) means a machine designed for use in business for efficient management controls in areas of sales analysis and stock control system and which conforms to the requirements specified by the laws.

Types of Electronic Fiscal Devices (EFDs)

Electronic Tax Register (ETR)

The device is used by retail business that issue receipts manually.

Electronic Fiscal Printer (EFP)

The device is used by computerized retail outlets. It is connected to a computer network and stores every sale transactions or details made in its fiscal memory.

Electronic Signature Device (ESD)

The device is designed to authenticate by signing any personal computer (PC) produced financial document such as tax invoice. The device uses a special computer program to generate a unique number (Signature) which is appended to and printed to every invoice issued by the user’s system.

Electronic Fiscal Pump Printer (EFPP)

The device is designed for use in Petrol Stations. It is connected to a pump and printed every receipt during the sale transactions.

NOTE:

You are obliged to issue receipt or invoice on each sale and notify any changes/malfunctioning of the machine to Commissioner within 24 hours. The supplier of the machine will install, configure and attend the malfunctioning of the machine within 48 hours.

EFD SECOND PHASE

Implementation of the second phase of Electronic Fiscal Devise (EFD) begun since year 2013, with the aim to expand the number of traders who shall use the EFD system to issue receipts or tax invoice in every transaction made. The second phase includes non VAT registered traders administered under The Tax Administration Act 2015,

Implementation of the second phase of EFD shall include the following groups;

Persons who are not VAT registered with a turnover ranging from TSHS 11 million and above per year;
Traders trading in the Region’s prime areas, identified on the basis of rent payable;
Traders dealing with selected business sectors such as Spare Parts, Hardware, Mini Supermarkets, Petrol stations, Mobile phone shops, Sub wholesale shops, Bar and Restaurants, Pharmaceutical Stores; Electronic Shops etc.

The system is ongoing and the Authority shall gradually be registering traders basing on traders business prosperity, experience and capacity

EFD Offences

Any person who;

Fails to acquire and use an electronic fiscal device upon commencement of business operations or expiry of the period specified by the Commissioner.
Fails to issue fiscal receipt or fiscal invoice upon receiving payment for sale of goods or service.
Issues a fiscal receipt or fiscal invoice that is false or incorrect in any material particulars.
Uses electronic fiscal device in any manner that misleads the system or the Commissioner.
Tempers with or causes electronic fiscal device to work improperly or in manner that does not give a correct or true document.

Commits an offence and shall be liable on conviction to a fine not less than 200 currency points and not more than 300 currency points or to imprisonment for a term not exceeding three years or to both.

These offences shall not apply to a person who is exempted by any tax law to acquire or use an electronic fiscal device.

Where any amount of tax has been evaded in any of the offence, a person involved shall be liable upon conviction in addition to a fine twice the amount of tax evaded or imprisonment for a term not exceeding three years.

A person who fails to demand or report a denial of issuance of a fiscal receipt or fiscal invoice upon payment for goods or service commits an offence and shall be liable on conviction to a less than 2 currency points and not more than 100 currency points.

WHY EFDs is Preferred?

It has in-built Fiscal Memory which cannot be erased by mechanical, chemical or electromagnetic interferences;
Automatic self-enforcing Issuing of daily “Z” report after every 24 hours;
Transmits tax information to TRA system automatically;
It has irreversible date mechanism
Issues fiscal receipts/invoice which is uniquely identifiable;
It can be used as a stand-alone and configured into a network;
It has at least 48 hours power backup, and it can use external battery in areas with no electricity supply;
It saves configured data and records on permanent fiscal memory automatically
It has tax memory capacity that stores data for at least 5 years or 1800 day transactions
Avoids conflict during audit and assessment of tax.
Simplify and ease objection and appeals