Electronic Fiscal Device (EFD) is composed of a Point of Sale (POS) or Invoicing System, a SDC and a Secure Element, all connected into one system. EFD produces fiscal receipts and reports Audit Data to a tax authority.
1. Point of Sale (POS) or Invoicing System, connected to the;
2. Sales Data Controller (SDC) and
3. Secure Element
Once a sale is made, the 1. Point of Sale (POS) sends the transaction to the 2. Sales Data Controller (SDC) which includes a 3. Secure Element that formats the data into a fiscal invoice, attaches a digital signature and transmits this back to the POS so that the receipt can be printed.
1. Point of Sale (POS) or Invoicing System
POS or Invoicing System is any software or hardware that is capable of issuing invoices or receipts. Examples include a Cash Register, Computer-based POS system, a Mobile App or an Accounting Software that can connect to the second component of the EFD to generate invoices or receipts. The POS or Invoicing System needs to go through the Accreditation process and published by the Ministry before a taxpayer can use to issue TIMS receipts. After an Invoicing system goes through the Accreditation process, it is considered an Accredited Invoicing System (AIS) and becomes a component of the business’s EFD.
2. Sales Data Controller (SDC)
The second component of the EFD is the Sales Data Controller (SDC) which ca be a software, hardware or web-service component of an EFD that receives an invoice request from an invoicing system (POS), creates the fiscal invoice and returns it to the same invoicing system (POS), and sends the audit data to the MCR database.
SDC is used to generate an invoice by signing requests received from an accredited POS and to produce audit data. It stores audit data to its own internal memory and enables performing audits. All the data which an SDC sends to MCR database is encrypted and only the tax authority official can decrypt it – meaning that taxpayers’ business information is perfectly safe during this transmission.
Virtual Sales Data Controller is a web service operated by the Tax Service that enables authorized taxpayers to use SDC functionality via the Internet.
External SDC (E-SDC) is a ‘black box’ type of software or hardware that contains the Secure Element and enables semi-connected fiscalization scenarios (enables issuing fiscal invoice when the internet is down).
It resides at taxpayers’ business locations and communicates with a Secure Element which is issued to taxpayers on a smart card (every smart card has its own secure element and a taxpayer can have more than one smart card for issuing fiscal invoices). In other words, E-SDC uses the taxpayer’s secure element to place a digital signature on the fiscal invoice.
E-SDC performs the same functions as V-SDC, but it is not controlled by MCR in real-time. To establish control over their work, local and remote audits are performed. If an audit is successful, the E-SDC will receive a Proof-of-Audit from MCR system.
3. Secure Element
Each business taxpayer is issued a personalized Secure Element (SE) the third component provided by MCR for free. This Secure Element (SE) is a fiscal component, implemented as a special software or device, designed to perform a specific set of functions:
▪ Identify the taxpayer to different services (V-SDC, Taxpayer Administration Portal…)
▪ Sign invoices using the taxpayer’s digital certificate
▪ Control audits (remote or local)
▪ Maintain a set of fiscal counters (to prevent any invoices from “disappearing” after they were created