Off-line ECR abolition: what will it lead to and who will be affected

A discussion has recently erupted in the parliament about restricting the operation of software payment transaction recorders (ECR) in the absence of the Internet. According to LIGA.net, officials want to bring back cash registers and the issuance of paper receipts if the cash register goes offline. 

The developers of the software registrars are unhappy with this decision and accuse the government of lobbying for the interests of certain companies instead of dealing with the pressing problems in fiscal accounting.

Torgsoft, as one of the developers of the software ECR, provided an explanation to Forbes about how critical it may be for end users — entrepreneurs — to return to cash registers, who have already become accustomed to certain advantages and benefits of working with software accounting products, especially in the absence of the Internet.

Why do the authorities want to ban offline sales through cash registers?

A little background. According to the information that became known to LIGA.net, the Ministry of Finance conducted a study of ECR to identify possible risks in their operation. Software registrars were found to pose a "threat to national security". Despite the fact that the results of this study were classified, the Ministry of Finance is asking the developers of ECR to submit proposals to overcome these threats.

At the same time, the only solution the government has proposed so far is to ban the use of software-based cash registers in offline mode, which is when a cash register loses Internet access or connection to the tax office's servers. Instead, the Ministry of Finance proposes to return the paper record book and use cash registers in the offline mode.

Another threat to large ECR operators is that officials may introduce a hardware key to sign all transactions. This signature can only be put on a file from a physical medium, which becomes impossible when using the ECR through a mobile application, in the absence of connection.

The authorities also propose to make changes to the structure of the ECR, which will require communication with the STS servers only from the user's end device, and not from the ECR provider's server, which will affect the stability of the application itself.

Thus, players in the cash register market fear that the actions of officials are biased by the interests of companies that sell physical fiscal registrars — cash registers.

Torgsoft position

Software ECR: easy to set up and save money for entrepreneurs

Entrepreneurs choose software-based cash registers because of a number of advantages:

• Ease of use — sales of fiscal goods take place entirely online, which means that the entrepreneur has less paperwork and faster receipts for reporting to the tax authorities.

• Close compatibility with the accounting program.

• Cost: software-based cash registers are much cheaper than traditional fiscal devices, making them more affordable for small and medium-sized businesses.

• No associated maintenance costs. Hardware-based cash registers require sealing and regular maintenance agreements, which involve mandatory monthly payments. In contrast, there are software-based cash registers (including Torgsoft) that offer options without monthly fees, which provides significant cost savings.

When changes are made to the legislation governing the operation of cash registers, it is necessary to send the devices to a service center for ref lashing, which takes a lot of time, and the store is forced to stop trading for this period. Additionally, some types of cash registers require a separate fee to update the software drivers. At the same time, software-based cash registers receive updates immediately.

Software-based cash registers are convenient for customer service and allow you to save on consumables, as receipts can be sent directly to e-mail, SMS, or via messengers.

• Saving space. Fiscal registrars take up a lot of space at the cash register, which is also a significant factor when choosing a fiscal registrar or a cash register. Usually, there is little space at the cash register.

Torgsoft forecasts

According to the head of the Torgsoft ordering department, the return to the use of paper reports and fiscal registrars, in the face of power outages and lack of communication, will cause increased dissatisfaction among entrepreneurs. This will be facilitated by the fact that from 2021 to 2023, entrepreneurs have made significant investments in the implementation of software-based cash registers, including the cost of staff training and technology adaptation.

The proposed changes, which would require the reintroduction of traditional fiscal registrars and paper-based document management, may be perceived as a step backwards, reducing the credibility of government regulatory decisions and creating additional financial and operational burdens for entrepreneurs at an already difficult time for business.