What is a white cash register?
A white cash register, also known as a Registered Cash System (RCS), is an electronic cash register system that is mandatory for certain businesses, especially in sectors such as hospitality. The purpose of the white cash register is to increase the transparency of financial transactions and prevent tax evasion. The system electronically and immediately records every payment received, resulting in an accurate record of revenue.
The Belgian white cash register consists of three interconnected components:
A Registered Cash Register System (RCS)
A black box, also known as a Fiscal Data Module (FDM)
A VAT Signing Card (VSC)
What is the 'black box'?
The 'black box' supplied with the white cash register is a secure module that records and stores all transaction data. The Belgian government also describes this as a Fiscal Data Module, or FDM for short.
It acts as an unchangeable memory module, preventing fraud or manipulation of financial data. This contributes to fair and transparent business operations within the hospitality sector.
What is a VAT Signing Card (VSC)?
After purchasing a certified cash register system and Fiscal Data Module (FDM), you need to register and link them on the website of the Federal Public Service Finance (FPS Finance). After this linkage, you can request a VAT Signing Card (VSC) free of charge. A VSC is a personal smart card, similar to a SIM card, that stores all data associated with your VAT number in the black box. This directly links the sales transactions of a hospitality business to the specific data of the same hospitality business.
For whom is the white cash register applicable?
The white cash register is mandatory for all restaurant and catering services that achieve an annual turnover of more than €25,000 (excl. VAT) and offer meals consumed on the premises. Only the gross profit from meals and products subject to 12% VAT is included in this €25,000 threshold. The 12% VAT is not included in the calculation.
However, activities such as takeaway meals (taxed at 6% VAT) and the sale of alcohol and other beverages outside a meal (taxed at 21% VAT) are therefore not included in the calculation.
The focus is on offering meals on the premises, so the main activity is not relevant. This means that in addition to restaurant owners, bakers, coffee shops, and fashion stores that offer meals on the premises are also required to purchase a white cash register.
Certain additional activities, such as the rental of tables and chairs, events where restaurant or catering services are provided, and other listed activities, are not included in the threshold calculation. Revenue from restaurant and catering services abroad is not included, but can be voluntarily included in the registered cash register system.
It is also your responsibility as a hospitality operator to accurately estimate each year whether you will exceed the €25,000 threshold or not. It is therefore important to register in time and purchase a white cash register to avoid fines.
Which cash register is suitable as a white cash register?
A suitable white cash register, or RCS, must meet specific legal requirements set by the Belgian government.
The cash register must have certain mandatory functionalities, such as the unchangeable registration of every payment received, the generation of a unique control document, and the retention of data for a legally determined period. Additionally, it must be possible to link the cash register to an external server for periodic control and reporting. Thirdly, the cash register must clearly display the identification data of the entrepreneur and the unique identification of the cash register on each control document. In short, a Belgian white cash register must have the three aforementioned components: the RCS, the black box, and the VSC.
Due to these obligations, analog cash registers are not allowed, and an online or digital cash register system is necessary. Additionally, the cash register must meet the fiscal requirements and be certified by the Federal Public Service Finance (FPS Finance).
Unipos, offered by Unipage, provides an extremely simple, reliable, and user-friendly white cash register for every catering business. In addition to meeting all legally required obligations, Unipos seamlessly integrates with our other Unipage products such as our webshops, kiosks, cash registers, and QR code ordering systems.
What about VAT receipts?
An RCS automatically generates VAT receipts for each transaction that takes place and that are valid for the Federal Public Service Finance (FPS Finance). So, there is no more administrative hassle involved.
What fines do I risk?
Since the mandatory introduction of the RCS in Belgium in 2015, the tax authorities regularly check for VAT compliance in the hospitality sector. If you are RCS-obligated but refuse to install one, you risk fines from the FPS Finance. These fines can amount to as much as €5,000.
If you use a registered cash register system that does not meet the conditions of a white cash register while it should, you risk a fine of €1,500 to €5,000. Furthermore, the fine for not issuing an RCS cash ticket on a first offense is €50 per cash ticket with a maximum of €500. This fine can increase to €250 per cash ticket with a maximum of €5,000 for more than two offenses.
Source: SBB Accountants Advisors (in Dutch)
Are there tax benefits to the white cash register?
Yes! As a user of an RCS, you are entitled to a discount of €500 per quarter for a maximum of 5 full-time employees. However, there is one condition: you use attendance registration.
Attendance registration is not mandatory, you only use it if you wish to claim this target group reduction. It is also not a time registration as breaks are not recorded through this system. Employees only need to log in when entering and leaving the premises. The discount is limited to a maximum of 5 people, but registration must be done by all present employees (cleaners, students, administrative staff, etc.). Your company may also only employ 49 workers to be eligible for this discount. Above 49 employees, you no longer qualify for the RCS reduction.
For each full-time employee, you get an RSZ discount of €500 per quarter. Is your employee under 26 years old? Then the discount is even higher, namely €800. Nice to have!
You can find more information (in Dutch) at Vlaio.be and Socialsecurity.be
In addition, the purchase of an RCS is of course considered a digital investment and fortunately, digital investments are tax-deductible. Digital payment systems, ICT security, and webshops also fall under this.
What if I am not RCS-obligated?
Whether a white cash register is interesting for you, even if you do not fall under the Registered Cash System (RCS), depends on various factors, including the nature of your business and your specific needs.
A white cash register can help improve the transparency and accuracy of your financial administration. If you value detailed transaction recording, such a system can offer advantages. Moreover, it can enhance the efficiency of your business processes, such as inventory tracking, report generation, and streamlining accounting. The use of an advanced cash register system can increase customer trust. Transparent billing contributes to a positive customer experience. Additionally, there are also tax benefits offered by the Federal Public Service Finance (FPS Finance), such as target group reduction.
On the other hand, you must also consider the costs of purchasing, implementing, and maintaining a white cash register, although these are tax-deductible. It is advisable to seek advice from a tax consultant or business advisor to determine if a white cash register is suitable for your specific business situation.
Are you interested in Unipos, the fully integrated white cash register from Unipage? Or would you like a non-committal demo? Fill out your contact information below.