Electronic Sales Suppression (ESS) involves businesses manipulating digital sales records to reduce reported turnover and tax liabilities. A consultation from 23 June to 18 August 2026 seeks input on mandatory software standards for EPOS and MPOS systems to combat ESS.
UK Consultation: Electronic Sales Suppression (ESS) – EPOS/MPOS Software Standards
Public
United Kingdom
Author: Ema Stamenković
Category:
General information
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509
Content accuracy validation date:
24.06.2026
Content accuracy validation time:
10:34h
Businesses that alter digital sales records to conceal or lower transaction values in order to reduce their stated turnover and tax obligations are engaging in Electronic Sales Suppression (ESS).
In order to address ESS, this consultation seeks opinions on the implementation of required software standards for the Electronic Point of Sale (EPOS) and Mobile Point of Sale (MPOS) industries. Duration: 23 June 2026 – 18 August 2026 (8 weeks)
Subject & Scope
ESS is when businesses manipulate digital sales records to hide transactions, reducing reported turnover and tax liabilities. This consultation invites views on introducing mandatory software standards for the EPOS (Electronic Point of Sale) and MPOS (Mobile Point of Sale) sector to tackle ESS.
Who should read: Sole traders, SMEs in retail/hospitality, industry bodies, tax professionals, EPOS/MPOS developers/providers/resellers, and anyone with knowledge of ESS.
How to respond: Partial responses welcome. HMRC will also conduct proactive stakeholder engagement (discussions and correspondence). Responses will inform future policy, with further steps announced per tax policy-making process.
Background
2013 OECD report advised tax authorities to strengthen legal powers, build staff skills, and criminalise ESS software supply.
2018 Call for Evidence (summary June 2020) found ESS widespread in small retailers, takeaways, hospitality. Common methods: deleting/cancelling sales, misdescribing VAT items, using extra tills during checks. Respondents supported: till system registration, unalterable records, real-time data storage, certification, behavioural change, HMRC enforcement powers, and cost support for small businesses.
Finance Act 2022 (Schedule 14) created offences for possessing, making, selling, or promoting ESS tools, and enhanced HMRC information powers under Finance Act 2008 (Schedule 36).
Autumn Budget 2025 announced initiatives to clamp down on high street fraud.
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