Countries implement such laws to make tax collection more efficient and manageable. As a result, taxpayers are obligated to submit a receipt for their sales revenue. The law may also require all manufacturers to include security features in their cash register software or the integration of fiscal security solutions.
With increasing digitalization and the move away from paper-based bookkeeping to digital systems, it became easy to secretly manipulate data. It is estimated that in the EU alone hundreds of billions in tax revenues are lost to the tax authorities every year through VAT fraud.