In France, POS Certification is one of the significant challenges in the country. And in recent years, numerous regulations and reforms have been introduced to aid in combating it.
As a reminder, since January 1, 2018, businesses and other VAT-registered professionals in France are required to record customer payments. Using management software or a system that complies with the provisions of Article 88 of the so-called « anti-VAT fraud » law.
This software must either have a certificate issued by an accredited organization, such as INFOCERT. Or an individual attestation from the software provider. The absence of a certificate or attestation can result in substantial penalties.
VAT fraud comes in various forms and is generally defined as intentionally or unintentionally concealing or understating a portion or the entirety of one’s income.
Among the different forms of VAT fraud, we find:
- Carousel VAT fraud
- Undeclared VAT
- Understated VAT fraud
- Intra-community VAT with a defaulting operator
- Lack of VAT registration in e-commerce
In 2021, INSEE estimated « missing VAT amounts of between 20 and 25 billion euros ». Representing nearly one percentage point of GDP.
But while the estimated fraud amount is on the rise compared to previous years, the amount of funds collected is also increasing. With a « total of notifications in 2021 amounting to 13.4 billion euros (a 35% increase from 2020), including 10.7 billion euros collected through tax inspections. »
VAT Fraud and Electronic Invoicing:
The fight against VAT fraud will soon be closely linked to the implementation of the reform for the widespread use of electronic invoicing.
A topic we have discussed extensively.
As a reminder, this reform mandates electronic invoicing. Along with the obligation to transmit digitized data (e-reporting) to the Tax Administration.
The objective of these two obligations is to provide the administration with a better understanding of the transactions conducted, implement automated controls, and save time for businesses, which should eventually benefit from pre-filled VAT declarations.
VAT Fraud and NF525:
As previously explained, the so-called « anti-VAT fraud » law, which has been in place since January 1, 2018, requires all VAT-registered businesses. Whether they are individuals or legal entities, private or public, using accounting software, management software, or cash register systems, to comply with this regulation.
To meet this legal requirement, INFOCERT has developed a structured framework and offers a quality POS certification issued by an independent third-party organization. With this certification, you can obtain an NF525 compliance certificate to fulfill the obligation of POS certification in France.
The POS certification in France is applicable to both software providers and companies that have developed their own in-house software for use in their stores.
The NF525 will help you demonstrate the integrity, security, preservation, and archiving of data required by the law. And it will also ensure a high level of software quality, among other benefits.
If you want to learn more about POS certification in France, about NF525. Or if you have any questions, please feel free to contact us.
https://www.infocert.org/nf525/ // https://www.insee.fr/fr/statistiques/6478533 // https://www.eurofiscalis.com/fraude-fiscale-2021/ // https://www.economie.gouv.fr/chiffres-lutte-contre-fraude-fiscale-2021#