The French Senate has approved a key measure in the 2025 Finance Bill (PLF 2025) to abolish self-certification for cash register software. This initiative aims to strengthen tax compliance and curb fraudulent practices linked to VAT collection by requiring software certification exclusively from accredited organizations.
Currently, businesses subject to VAT must use software that meets strict requirements for data integrity, security, retention, and archiving. These conditions can be verified through certification by an accredited body or self-attestation by the software provider. The Senate’s proposal seeks to eliminate the latter option, mandating independent certification for all software used in transactions.
Why Eliminate Self-Certification for cash register softwares?
The move is driven by concerns over the potential for abuse in the self-certification process. Lawmakers argue that allowing software providers to vouch for their own products creates loopholes that can enable VAT fraud. This issue is particularly evident during tax audits, where fraudulent software functionalities have been uncovered.
Senator Pierre Barros highlighted the risks associated with insufficient oversight, stating, “While free software solutions provide accessible tools for small businesses, they also pose significant risks of fraud. We need a mandatory certification process to reverse the burden of proof and support tax authorities in their efforts to ensure compliance.”
Implications for Small cash register software Businesses
The proposed measure has raised concerns about its impact on small businesses, which may face increased administrative burdens. Budget Minister Laurent de Saint-Martin acknowledged the potential challenges, emphasizing the need to balance rigorous compliance with simplicity to avoid excessive strain on smaller enterprises.
However, proponents of the measure argue that stricter oversight is essential to maintain fairness in the market and prevent unethical competition among software providers catering to fraudulent practices.
Small french cash register software publishers like Temmple could therefore be disadvantaged by this measure.
A Step Towards Greater Transparency of cash register software
By requiring independent certification, the government aims to improve transparency and bolster trust in fiscal systems. This measure could also encourage innovation among software providers, pushing them to develop solutions that meet higher standards of integrity and security.
Although the proposal has gained support in both houses of Parliament, its final adoption depends on the outcome of ongoing legislative debates. The government retains the option to amend or veto the measure as part of the broader Finance Bill discussions.
In conclusion, the Senate’s push for mandatory certification represents a significant step towards tackling VAT fraud. While the transition may pose challenges for some businesses, it has the potential to create a more equitable and trustworthy fiscal environment, benefiting the economy as a whole.
Warning : This information is indicative and without guarantee of accuracy. Consult a professional before making any decision.
