The Tax Monitoring System (TMS) is an initiative by governments (Ministry of Customs/Revenue) to increase Tax compliance and consequently reduce hidden economy and tax evasion. This system will help taxpayers easily comply and provide insight into data submitted to the government. Each transaction involving the sale of Goods or Services will be accounted for. The primary objective of this system is to reduce hidden economy and tax evasion.

The TMS is a system whereby goods and services invoices are sent to the Government's computer systems showing details of the invoice and revenue/taxes collected.

Below are the two countries that have implemented TMS:

1. Fiji Revenue and Customs Service . System known as  FRCS VMS which stands for "Fiji Revenue and Customs Service Value Added Tax Monitoring System". The Fiji VMS system was launched in 2017.
2. Samoa Ministry of Customs and Revenue . System known as TIMS which stands for "Tax Invoice Monitoring System". The Samoa TIMS system was launched in early 2020.

The Tax Monitoring system has been provided to the above two governments by " Data Technical International ", and is known as the TaxCore system.

TMS uses a Electronic Fiscal Device (EFD) to transmit sales data. When a sale is completed, Link "Point of Sale" (POS) sends transaction data to the "Sales Data Controller" (SDC).  The SDC contains secure elements that transforms data into a "Fiscal Invoice", attaches a "Quick Response Code" (QR code)  and transmits this back to POS. Customers can scan the QR code on their mobile devices to verify the receipt. At this point, the sales transaction is available at the governments computer systems. Refer to " Data Technical International " web site for more details on how the Tax Monitoring system works.

Tax Payers need to register with the respective governments and obtain the relevant certificates. These certificates will be used by the POS system to securely transmit data. There are a few options to choose from. Please discuss these options with your implementation partner to work out the best and most cost effective option for you.

Electronic Fiscal Devices (EFD)
The EFD is an electronic fiscal device system that contains the SDC to produce fiscal invoices. There are two EFD systems. 

1. External Sales Data Controller (ESDC)
   1. ESDC uses a web service to transmit data. The ESDC web service signs the invoice and then forwards it to the TaxCore system.
   2. Machines with ESDC setup require network connectivity at least once in 48 hours to transfer sales data. If internet is not on the machine, on 90% usage, user will be prompted a message that card capacity has been 90% used. Users will need to connect PC to internet to migrate sales data to the TaxCore system.
   3. Recommended for high volume sites or where internet is not reliable
2. Virtual Sales Data Controller (VSDC)
   1. VSDC transmits sales data directly to the TaxCore web server.
   2. Clients are required to install digital certificates provided.
   3. Internet connection is required. If there is a network failure the sales data will not be sent to FRCS and the invoice will not print. Client will not be able to use the system until the network has been established.
   4. Recommended for low volume sites with reliable internet

*If V-SDC and E-SDC both are enabled, V-SDC will take precedence*

Fiscalisation Devices - Purchase Options

1. ESDC : Internet connection is NOT required to sign invoices. Clients can choose from these options:
   1. Soft ESDC - ESDC Software installed on the POS machine. Customers can download the software and buy a licence directly from the SoftSDC website.
      1. Clients need to obtain the "Smart Card Reader" form their respective governments.
   2. Inspur Device - The device is a little hardware box that transmits data to FRCS. The device is distributed by Datec Fiji Ltd.
      1. The card reader is inbuilt.
      2. The supplier will install and configure the device 
2. VSDC - Internet connection is required to sign invoices. Clients can choose from these options:
   1. OPTION 1 - Obtain a "File Certificate" from  your provider. No hardware required
   2. OPTION 2 - Secure Card and "Smart Card Reader" based certificates.

Training Mode
The TMS system will be placed in TRAINING MODE when the LinkSOFT configuration setting "System.Operating.Mode" is set to "Test". This can be done in LinkSOFT using menu "Company Administration -> Configuration -> System.Operating.Mode".

Notes

1. If the SDC signing fails, the POS station will not be allowed to proceed.Users have the ability to verify settings and retry the sign.
2. The system will sign all invoices that are unsigned at POS start and shift close.
3. More details on EFD options for FRCS VMS is available at this link .

References:

1. Fiji Revenue and Customs Service, viewed 29th July 2020,< https://www.frcs.org.fj/our-services/vat-monitoring-system-vms/>
2. Samoa Ministry of Customs and Revenue, viewed 29th July 2020,< https://www.revenue.gov.ws/>
3. Data Technical International, viewed 29th July 2020,< https://dti.rs/>
4. Unified Soft Limited, viewed 29th July 2020,< https://www.softsdc.com/>