Conclusions
Although much remains to be explored to fully understand the impact of EFDs on
compliance, these results point to the main conclusion of this study: the implementation of
EFDs can only be effective if it is a part of a comprehensive compliance improvement
strategy that clearly identifies risks for the different segments of taxpayers and envisages
implementing a set of measures to mitigate these risks. EFDs should not be construed as the
“silver bullet” of tax administration: as with any other technological improvement—and this
applies as well to new technologies, such as e-invoicing—the deployment of fiscal devices
alone cannot by itself achieve meaningful results, whether in terms of revenue gains or
permanent compliance improvements.
The introduction of fiscal devices presents opportunities for the tax administration to
rethink its approach to business processes, not only by automating the collection of
information, but also by leveraging the new arrangements to improve compliance approaches
and strategies. Another area affecting the use and deployment of EFDs is the constant
evolution of the technology involved, both in terms of cost reduction and improved
performance of the devices. The emergence of new technologies is a constant challenge to
established views on fiscal devices. Several countries approached for the survey indicated
that after studying the effectiveness, costs, and administrative requirements of EFDs, they
had decided that other technologies, in particular e-invoicing, would be more
cost-effective. Accordingly, they had decided against the mandatory deployment of EFDs.
E-invoicing advocates suggest that in this new context, EFDs—whose costs must be borne
by traders in all but a few countries that have adopted them—are no longer cost-effective
and will eventually fade away.
Another key conclusion from this study is that the introduction of EFDs requires
considerable effort and is accompanied by associated costs both to the administration—in
identifying the technology, selecting the devices, overseeing their deployment, and
monitoring their usage—and to the affected taxpayers in addressing the requirements of the
new rules. Once the devices are chosen and available, it is essential that appropriate
arrangements be put in place for their installation, support, and maintenance. Survey
responses confirm that, when these arrangements were not in place or were incomplete, the
implementation of EFDs faced considerable problems. Proper consideration of these factors
is essential for a successful implementation. Moreover, EFDs appear to suffer from similar
challenges as other regimes if there are no effective follow-up and enforcement measures.
Absent effective compliance monitoring and enforcement, overall VAT compliance cannot
be improved, with or without EFDs.
conformace
compliance
considerable effort
comprehensive compliance improvement
strategy
constant challenge
http://www.imf.org/external/pubs/ft/wp/2015/wp1573.pdf
You see… all (((they))) want is to tax us to death. Those of us that are left. Are we to comply with (((their))) demands of taxation?