What are ETR Machines?
An Electronic Tax Register (ETR) is a type of cash register used to record sales and provide ETR receipt Kenya to customers. The registers also issue daily sales reports and stores information on stocks and sales. ETRs are built with Fiscal Memory, a unique type of read only memory (ROM). It stores tax-related information created each time a service or product is sold.
Although ETR machines can be added to networks, they can also be operated as standalone devices. An ETR machine is built with various security attributes, including memory, seal, unique technical specifications and serial numbers, among others.
Unlike Electronic Cash Registers (ECR), ETR machines are falsification-proof and thus they come highly recommended in Kenya. They feature tax memory that’s built to store information related to tax. The programmable read only memory (PROM or EPROM) can store up to 1800 days of transactions or a minimum of 5 years-worth of transactions.
The machines produce easily-identifiable fiscal receipts to support the generation of fiscal summary on a daily basis. It also comes in handy during tax-compliance inspections. Small scale retailers use ETR machines with every taxpayer. The choice of the best ETR Kenya is dependent on your business needs.
How ETR Machines Can Help You with Your Company Taxes
ETRs transmit data in real time each time a transaction is made. It means KRA is constantly watching the taxpayer. The devices feature General Packet Radio Service (GPRS) to help the taxman track the location of each ETR device. Therefore, if a register is stolen, the risk of your business failing to pay taxes and KRA losing revenue is completely eliminated.
Each time a transaction is made, data is transmitted to a central KRA server. It’s calculated and stored ready for reconciliation when actual tax returns are filed each time the month comes to an end. The technology helps KRA save millions in cost of operation. It also helps KRA collect billions of shillings lost due to tax evasion.
GPRS is a wireless communication service. It’s used remotely to track the location of ETRs, transmitting data to a central KRA location. The device ensures KRA has access to all payment records made before filling tax returns. ETR devices are meant to help your business minimize the risk of losing revenue if it fails or is stolen.
KRA will already have the information backed up in its servers, so your business has nothing to lose. The GPRS technology has increased the number of taxpayers and increased revenue for other authorities. The population of Bulgaria rose from 3,000 to 3320 taxpayers. The figure rose when GPRS was introduced as a feature of the ETR machine.
KRA is a legal authority with the right to introduce various tax brackets. The ETR connects your business to the taxman, preventing fraud and improving cash flow. It also saves costs, improves VAT collection and prevents tax evasion. It ensures small traders are included in the tax bracket for higher revenue collection.