Fiscalization in Cyprus: definition of the fiscal electronic mechanism for tax control

Cyprus has defined fiscalization around Electronic Tax Registers / Fiscal Electronic Mechanisms, which issue and securely store tax documents in tamper-proof fiscal memory connected to POS or computer systems, ensuring transparent transaction recording and effective tax audits.

The Ministry of Finance in Cyprus has outlined the role of fiscal devices, known as Electronic Tax Registers (ETRs) or Fiscal Electronic Mechanisms (FEMs), in the country’s fiscalization system.

These devices are designed to issue tax documents that confirm revenue transactions and securely store them in fiscal memory. This system ensures transparency and prevents manipulation of financial records.

Fiscal devices must guarantee that:

·         Every issued document is uniquely linked to the device’s fiscal memory.

·         Recorded data cannot be altered without leaving detectable traces.

·         Tax authorities can conduct effective audits.

The devices are connected to cash registers or computer-based systems such as Point of Sale (POS) terminals or personal computers. All taxable transactions processed through these systems must be recorded in the fiscal memory of the device, ensuring compliance with tax regulations.