National Tax Gap Minimization and Digital Transformation Solutions for Improved Tax Administration. Modern TaxTech Solutions For Tax Gaps Reduction and Improved Tax Administration. Tax gap minimization. Increased tax revenue collection. Decreased costs of tax administration. info@digitaltaxtech.com www.taxtech.digital Partnering with global tax consultants and top technology providers allows us to provide end-to-end digital tax transformation solutions that are nonintrusive and compatible with existing tax systems and business processes. Our proven digital tax administration solutions cover the entire fiscal data lifecycle for large and complex national digital transformation projects. We use flexible technology stack enabling easy integration with legacy and third-party systems. Our team of international experts has experience and knowledge gained from implementation of many nationwide digital transformation projects for tax administrations in various European, CIS, Middle East and African countries. Implementation of our Digital Tax Administration Solutions can increase VAT collection up to 150%, excise collection up to 700% and move millions of self-employed out of shadows. The difference between the revenue potential (legal) and the actual revenue collected is the “Tax Gap“. Sources of the tax gap: - tax evasion - tax avoidance due to benefits - established by law (legal tax gap)

1. Trusted Global Tax Gap Advisor &
Digital Solution Provider for Tax
Administrations
Trusted Global Tax Gap Advisor &
Digital Solution Provider for Tax
Administrations
National Tax Gap Minimization
and Digital Transformation
Solutions for Improved Tax
Administration
Tax gap minimization
Increased tax revenue collection
Decreased costs of tax administration
info@digitaltaxtech.com
www.taxtech.digital
05.2022

2. 2
Table of Content
About Us What we do?
Tax Gap Minimization and
Digital Transformation of
Tax Administration
Digital Solutions Portfolio
for Tax Administrations
Experience & Contacts Exhibits

3. About Us
Digital Tax Technologies (DTT) is an international expert in
tax gap minimization, a trusted digital transformation advisor
& solution provider for national tax administrations.
We help tax administrations around the world to reduce the
tax gap, improve tax revenue collection and reduce the share
of the shadow economy.
Our mission is to increase global fiscal transparency,
improve tax compliance and administration, and ensure fair
competition and welfare.
Our team consists of experts with experience in digital tax
administration advisory and implementation in various
European, CIS, Middle East and African countries.

4. What We Do?
4
For Tax Administrations We delivered
Who want to
We offer
That provides
the following
benefits
>10
National scale projects in Albania,
Croatia, Czech Republic, Kazakhstan,
Kyrgyzstan, Montenegro, Nigeria,
Saudi Arabia, Uzbekistan, and other
countries
>150%
Tax and excise collection increase
>100%
# retail taxpayers and cash registers
increase
Development of the Digital
Transformation Strategies and
Digital Tax Administration
Concepts
Digital Tax Administration for
B2B, Retail and Online
Platforms (B2C) and Self-
employed (C2B and C2C)
Consumer Products Marking,
Tracking & Tracing
Increase in B2B and retail VAT
collection up to 150%
Increase of registered retail
taxpayers, cash registers and tax
revenues per cash register up to
100%
Growth in revenue and profits for
genuine goods manufacturers
and increased collection of
taxes and excises
Reduce a tax
gaps and share
of shadow
economy
Increase tax
and excise
revenue
collection
Decrease tax
administration
costs

5. Our Approach to Minimization of the Tax Gap and Digital
Transformation of National Tax Administrations
5
Partnering with global tax consultants and top technology providers allows us to provide end-to-end digital tax
transformation solutions that are nonintrusive and compatible with existing tax systems and business processes.
Our proven digital tax administration solutions cover the entire fiscal data lifecycle for large and complex national digital
transformation projects. We use flexible technology stack enabling easy integration with legacy and third-party systems.
Our team of international experts has experience and knowledge gained from implementation of many nationwide digital
transformation projects for tax administrations in various European, CIS, Middle East and African countries.
Analysis of the tax gaps and
assessment of gap minimization
options, considering the
necessary changes in regulatory
framework
01
02
04
03
05
Development of concepts and
strategies for the digital
transformation of tax authorities
Development of roadmaps toward tax gap
minimization based on the global best
practices and latest innovations in digital
technologies
Identification of additional sources of the
tax revenue, including financial modeling
and development of the business cases
End-to-end digital tax
administration solutions design,
selection, implementation and
support

6. Combating tax evasion
Increasing tax collection
Reducing the costs of tax
administration
Analysis and minimization of the
risks of reducing tax revenues
due to the growing share of the
cross-border online economy and
informal employment
Digital transformation of the tax
administration with real-time
access to data across global
supply chains, retail and c2C
transactions
Tax Administration Challenges

7. [1] Source: World Bank 7
The Goal of Digital Tax Administration is Identification and
Minimization of the Tax Gap
The Concept of the Tax Gap Tax Gap Minimization Model
Input Digital Tax Administration Outcomes
Size of the tax
base and it’s
dynamics
Increase in the
number of TINs
registered as
individual
entrepreneurs
and/or self-
employed
Increased
collection of VAT,
income taxes,
excises, and other
taxes
etc.
Tax regimes
(VAT, Income
Taxes, Excise
taxes…)
Tax Gap Estimate
(%)
Tax Gap
Reduction
Estimate (%,
absolute value)
The difference between the
revenue potential (legal) and
the actual revenue collected
is the “Tax Gap“1
Sources of the tax gap:
tax evasion
tax avoidance due to
benefits established by
law (legal tax gap)
To identify the sources of the
tax gap and to act with a
reduction plan it is important:
to see all potential sources
of the state revenue,
including non-tax based
to prioritize work with the
gap sources to minimize
political risks and achieve
maximum effect for the
state’s budget
Tax gap reduction
with the new
methods of
digital tax
administration
For effective tax administration it is necessary to understand where and why the state loses taxes,
identify the sources of the tax gap and implement an action plan to minimize it

8. Implementation of our Digital Tax Administration
Solutions can increase VAT collection up to 150%,
excise collection up to 700% and move millions of self-
employed out of shadows

9. Example of VAT Gap Reduction in B2B and B2C Sectors
B2B sector B2C sector
The total VAT income increased from
$30bln in 2014 to $75bln in 2021 (by
150%)
Input VAT tax gap reduced from 8% to 0.5%
165% — Increase of annual VAT volume in
retail in 2020 since 2017
Various approaches and tools were introduced to
reduce the tax gap:
Mandatory e-VAT business invoicing and
reporting to Tax Administration
Online Electronic Cash Registers (OECRs) in
retail
Voluntary direct access of Tax Administration to
taxpayer’s accounts and transactions
VAT collection, bln USD
30
34 36
42
49
58 58
75
2014 2015 2016 2017 2018 2019 2020 2021

10. DTT Solutions Portfolio for Digital Tax Administration
Solution Key Solution Capabilities
Digital Transformation
Advisory for Tax
Administrations
Identification and Reduction of the Tax Gap. Development of a strategy, a phased approach and a business plan to
implement the digital transformation of national tax system at the country and/or economic union level
Online Fiscalization with Online
Electronic Cash Registers
(OECRs)
Implementing Online Electronic Cash Registers equipped with secure fiscal data units and transmitting data in real-
time to the tax systems to improve fiscal transparency and raise tax compliance in retail
Different types of secure OECRs available to businesses, reducing the costs of such systems. From low-cost fiscal
tills and linked fiscal printers, to sophisticated enterprise systems
Digital Product Marking,
Tracking & Tracing
Assignment of an identifying token (e.g., a Data Matrix QR code as markings) to a genuine product which is then
used to track the movement of the product along the supply chain
Tracking (locating) & tracing (checking the origins) of products with back-end database in which movement of the
products along the supply-chain are recorded from manufacturing to consumers
Genuine products and every receipt generated by online cash registers contain a quick response (QR) code.
Scanning of QR codes verifies if the products and receipts are genuine by comparing them with information
maintained by the tax administration. Can be rewarded to encourage public control via simple mobile access of
consumers to cashbacks, discounts and gifts from manufacturers, retailers, banks and tax administration
eVAT / e-Invoices for B2B and
B2C
Mandatory reporting of all issued invoices/pro forma invoices and their cross-validation by tax administrations
improves tax compliance in B2B transactions
Online Electronic Cash Registers available as a cloud services and improve fiscal transparency for cross-border
trade and offshore eCommerce providers
Digital Tax Administration
Platform for Online Economy
Easy online registration and stress-free tax administration for online platforms and self-employed citizens
Simple and clear process of tax compliance to get access to social benefits and protection 10

11. 11
Our Expertise and Contacts
We are a global team of tax and digital experts working with tax administrations,
global tax consultants, and top technology providers on the most important
aspects of the digital transformation of national tax systems.
Our key areas of expertise are:
Digital transformation of tax administrations and transition to the real-time
economy for the tax gap reduction
Implementation of digital track & trace solutions
Implementation of online cash registers
Effective taxation of platform sellers and self-employed taxpayers in sharing
and gig economies with eVAT / eInvoicing solutions
Advanced analytics/Big Data/AI for value-added tax administration
Tailor-made and off-the-shelf software product development
End-to end IT solutions design, implementation & support in cooperation with
top software & hardware vendors and tax consultants
Contact us for
more details
info@digitaltaxtech.com
https://taxtech.digital

12. DTT Services & Digital Solutions for
Tax Administrations
12

13. 13
Terms and Abbreviations
Online Electronic Cash Register — cash register
capable to send transaction data periodically or in
real-time to the tax administration in secured mode
Product authentication — validation of products as
genuine
Product marking — affixing of secure and non-
removable identification markings to the products
or product packs
Tracking — locates products
Tracing — determines the origins and destinations
of goods
DTT — Digital Tax Technology company
ECR — electronic cash register
FDO — fiscal data operator
OECR — online electronic cash register
OECRaaS — online electronic cash register as a
service (OECR in the cloud)
POS — point of sale
PiC — products in circulation
TA — tax administration
T&T — national track & trace system
TTO — track & trace system operator
TIN — taxpayer identification number

14. Tax System
Stakeholders,
Pains, Digital
Solutions and
Benefits
Stakeholders Pains Digital Solution Benefits
Tax
Administration (TA)
Tax revenue evasion: understated
revenues using unaccounted cash
(mostly in B2C) and inflating
deductions through fake invoices
(B2B)
Growing dependency on real-time
access to data flows across
global supply chains and retail
Online Electronic Cash Registers equipped with
secure fiscal data units and transmitting data in
real-time to the tax systems improve fiscal
transparency and raise tax compliance in retail
Implementation of eVAT/eInvoices management
solution via mandatory reporting of all issued
invoices/pro forma invoices and their cross-
validation by tax administrations improves tax
compliance in B2B transactions including cross-
border trade and eCommerce
Grow of tax revenue
Better tax compliance in
retail and shadow
sectors of economy
Reduced cash in
circulation
Protection of fair
competition
Consumer Product
Goods (CPG)
Manufacturers
Growing share of counterfeited
products, erosion of revenue and
income due to illicit trade
Product marking for Digital Tracking & Tracing
helps reduce illicit trade and counterfeit flows,
increase manufacturers & tax revenue, public
safety and health
Reduce in counterfeiting
Growth of vendors’
revenue and profits
Fair competition
Retailers
Growing complexity and burdens
of tax compliance
Small retailers and self-employed
can’t afford cash registers and
advanced enterprise management
& analytics systems
Online Electronic Cash Registers improve fiscal
transparency and raise tax compliance
Different types of secure OECRs available to
businesses, reducing the costs of such systems.
From low-cost fiscal tills (e.g., as mobile apps)
and linked fiscal printers, to more sophisticated
enterprise business management systems (with
inventory control, accounting and ordering etc.).
Better tax compliance
Reduction of compliance
burdens
Enhanced consumer
protection
Small retailers can get
better data and analytics
on turnover and
shopping behavior
Consumers
Difficult to find a best deal across
many product offerings and
loyalty programs
Unintentional use of counterfeit
products can pose a threat to
health and well-being
Products and each receipt generated by online
cash registers have a Quick Response (QR) code
that enables consumers to scan it and verify the
transaction by comparing receipt to the
information maintained by the Tax
Administration
Access to cashbacks,
discounts and gifts from
manufacturers, retailers,
banks and tax
administrations
Self-employed
Complex and confusing process
of tax compliance
Can’t afford cash registers
Simple online registration and tax administration
in a mobile app for self-employed
Simple access to social
benefits of being legal
taxpayer

15. Tax Gaps Analysis & Development of the Digital Transformation
Strategies and Digital Tax Administration Concepts
We assist tax authorities in development of the digital tax
administration concepts and roadmaps to minimize the tax gap,
create new revenue sources and decrease tax administration costs
We offer advisory services, selection and implementation of the
end-to-end digital tax administration solutions in the following
areas:
15
Analysis of the tax gaps and assessment of gap
minimization options, considering the necessary changes
in regulatory framework
Development of digital tax transformation strategy to build
the case for modernization of the national revenue
collection system
Development of roadmaps toward tax gap minimization
based on the global best practices and latest innovations
in digital technologies
Identification of additional sources of the tax revenue,
including financial modeling and development of the
business cases
End-to-end digital tax administration solutions design,
selection, implementation and support

16. Potential Causes of the Tax Gaps and Benefits of the Digital
Tax Administration for the Tax Gap Minimization
16
Tax Industry Tax Gap Causes Solutions for Minimization Potential Outcomes
Excise B2B Understated import costs
Understated income
Counterfeiting
National track and trace system
Up to 700% excise collection growth in
specific product categories
VAT / Sales Tax B2B Overstated tax deductions
Adjustments
Mandatory submission of VAT e-invoices to
tax authorities
Growth of VAT collection up to 150%
B2C (retail) Understated income
Adjustments
Online Electronic Cash Registers (OECRs) Growth of VAT collection up to 150%
B2C (online retail) Offshore operation (online platform, service
provider)
Non-filing of tax returns (e.g., Uber driver)
Digital platform for tax administration of B2C
and C2C commerce
Growth of VAT collection up to 150%
Income Tax for Self-
employed and Individual
Entrepreneurs
B2C, C2C (self-
employed and
entrepreneurs)
Understated income
Non-filing of tax return
Digital Tax Administration for Online
Economy and Self-Employed (B2C, C2B &
C2C)
Growth of the number of registered TINs
(INNs) and the tax collection by/up to 100%
Corporate Income /
Profit Tax
B2B Understated income
Overstated costs
Overstated import costs Development of a data system to identify
and bridge the tax gap
Tax gap reduction by 10-30%
Personal Income tax /
Payroll taxes
B2B Understated income
Non-filing of tax return
Property Tax B2B, B2C Non-filing of tax return
Source: DTT’s analysis and estimations

17. Our solution portfolio for tax administrations
based on the best technologies and
innovations that facilitate tax management
and revenue collection:
Online Electronic Cash Registers (OECRs)
Digital Authentication, Tracking & Tracing
eVAT / e-Invoices
Digital tax administration platform to
improve collection from online economy
participants including self-employed
Our Digital Tax
Administration Solutions

18. 18
Transition To
Online Electronic
Cash Registers
(OECRs) Improves
Fiscal
Transparency and
Tax Compliance in
Retail (B2C)
The success of modern tax administrations is increasingly becoming dependent on access to
data flows, including in real-time.
One of the most important data flows for tax compliance purposes is information on retail
income. It is also one of the most important economic indicators, characterizing consumer
confidence and the health of economy.
Cash registers provide key source of original retail data for tax administrations and auditors.
Several Tax Administrations already started testing a new solutions enabling online access to
retail sales data generated by online electronic cash registers equipped with secure fiscal data
units and transmitting data in real-time to the tax systems.
Following a successful pilots, legislation should be introduced mandating the use of online cash
registers in all retail businesses across countries through a phased implementation process.
In essence, online cash registers create a secure “internet of things” network providing Tax
Administrations with a continuous real-time flow of nationwide data critical for assessing tax
compliance and important statistics on economic performance and retail prices.
The introduction of the new online cash register system improves fiscal transparency and raises
tax compliance significantly. It is also facilitating the creation of a level playing field for fair
competition among retail businesses and retail solution developers as well as contributing to the
protection of consumers’ rights, reducing compliance burdens and providing new opportunities
for businesses.

19. Electronic Online Cash Registers Implementation in Retail
Can Increase Tax Collection up to 150%
19
Hard copy or
digital fiscal receipt
with QR code
OECR
Retailer
Consumer Tax Administration
Digital
fiscal receipt and
other data for TA
Receipt scanning
mobile app
=
IF
1. OECR prints/sends a fiscal receipt to
consumer (either hard or digital copy)
and to Tax Administration (digital
copy in near real time)
2. Consumer has incentive to send his
copy of receipt to Tax Administration
for verification
3. The tax administration receives
transaction data from both the
merchant and consumer and can
verify a match
Fiscal Data
Operator
(OFD)
Online Cash Register sends
unaltered fiscal data to the tax
authorities in real time for
automatic tax calculations
The OECR Concept
1
2
3

20. Online Electronic Cash Registers Solution Benefits
20
For retailers
Versatility and compatibility with various types of cash registers from smartphones to specialized devices
Ease of installation and integration with POS systems
Lowering cost of tax compliance, new opportunities to improve consumer loyalty
For tax authorities
Improved retail tax revenue collection
Big data, analytics, ML and AI for standard & ad-hoc reporting and fraud detection
Direct feed-back from citizens, new opportunity to introduce new digital services
For citizens
Additional source of monetization via cashback and discounts in exchange for scanned receipts
Collection of electronic receipts helps to analyze cash and digital personal expenses

21. Our Approach in
Fighting Illicit
Trade and
Counterfeiting
with Digital
Track & Trace
Solution Leads to
an Increase in
Excise Revenues
from B2B and
B2C
[1] The Economic Impacts of Counterfeiting and Piracy – Report prepared for BASCAP and INTA. International
Chamber of Commerce. iccwbo.org/publication/economic-impacts-counterfeiting-piracy-report-prepared-bascap-
inta/
21
Illicit trade is swiftly rising, and global economic value of counterfeiting and piracy could reach US$2.3
trillion in 2022.
According to the International Chamber of Commerce and Frontier Economics the costs of displaced
economic activity, investment, public fiscal losses and criminal enforcement could reach an estimated
US$1.9 trillion by 2022.
Taken together, the negative impacts of counterfeiting and piracy are projected to drain US$4.2 trillion
from the global economy and put 5.4 million legitimate jobs at risk by 2022 [1].
Business stakeholders and governments will not be able to win the fight against illicit trade without
efficient product marking, tracking, tracing and authentication systems.
DTT has a firsthand experience in building national Track & Trace solutions to avoid illicit trade via 1)
verifying identification features of genuine products and 2) tracking & tracing products from
manufacturing to consumers.
We work in close cooperation with tax administrations, manufacturers, solution component providers
to build national Track & Trace systems that are not disruptive of the supply chains while enhancing
the effectiveness of counterfeiting and revenue controls.
We also develop smart phone technologies that allows brand owners and independent software
developers to empower consumers in the fight against illicit trade and counterfeiting by having access
to anti-counterfeiting web platform.

22. 22
How Governments Can Better Tackle Illicit Trade and
Counterfeit Products Flow
Marking, Tracking and Tracing Products in Circulation The Track & Trace Concept
Track & Trace solution implementation country and union wide helps to
reduce or stop the most counterfeited product categories flow (tobacco,
drinks, drugs etc.) via:
National marking certification for production facilities and lines
Marking of each manufactured unit pack and/or product with unique, non-
removable and digitally tracible codes issued by T&T Operator
Tracing of the circulation for each product or unit pack from assembling
lines to POS to consumer in near real time
Electronic Online Cash Registers (EOCRs) that keep track of the
withdrawal of marked products from circulation to eliminate the risk of
double selling
Public control encouraging consumers to identify and report illegal
products in circulation
Tax administration and excise revenue management based on the real
time information received from the T&T system Retail
store
POS
Product
Manufacturer
Product authentication
(public control of illicit
goods)
Track & Trace
Operator
Product markings
(e.g., QR codes)
Goods & packs Supply chains
Creates unique
digital codes for
Manufacturer
Affixes
To
Shipped in
Sold at
To
Used digital codes are
going out of
circulation

23. 23
Track & Trace Implementation Requirements and Benefits
for Tax Administrations
Track & Trace Implementation Requirements Benefits for the Tax Administrations
Implementation of a Track & Trace solution may require changes to
existing business practice and regulation, including:
Establishing of a national Track & Trace Operator responsible for
the development and operation of the national T&T system
Enforcing of mandatory marking for the certain product
categories sold in the country and integration of manufacturing
processes with T&T system. May require implementation of
national marking certification process for production facilities
and lines
Implementation of Electronic Online Cash Registers (EOCR) that
keep track of the withdrawal of marked products from circulation
Putting in practice a public control encouraging consumers to
identify and report illegal products in circulation
Increased revenue collection. Online administration of retail
taxes and excise duties
Improved public safety and health. Lowering of the financial,
operational and criminal risks
Online administration of products in circulation. Any violations
are detected automatically and transparent for inspectors
Counterfeiters will not be able to release products for illegal
circulation. Illegal products are forced out of legal circulation
which is controlled by the T&T system
Full transparency of retail trade. Elimination of risk of double
selling of used product codes
Development of responsible citizenship

24. Five key VAT trends and what to do about them. EY, 2019 [1] 24
Mandatory e-
VAT / e-
Invoicing
Reporting Leads
to an Increase in
VAT Collection
VAT tax gap reduction
for:
B2B
B2C
C2C sectors of
economy
Reduction of taxpayer
administrative burden:
no filing, all tax
administration is done
by TA
Other benefits:
additional big
statistical data about
businesses activities
on national level
Implementation of mandatory e-VAT / e-Invoicing business reporting presents the
following opportunities for Tax Administrations:
A recent study1 from Ernst & Young founds the following five key global VAT
trends:
1. VAT is growing in popularity and importance
2. Nations are pushing the limits on how high VAT rates can go
3. VAT rules and rates are entering a period of volatility
4. VAT fraud is alive and well
5. Growing digital reporting and compliance requirements

25. eVAT Administration
System
Online Cash Registers
Administration System
eVAT Invoices
Digital VAT Administration Architecture
25
Fiscal Receipts
Electronic VAT return
Electronic register of
issued and received
VAT invoices
Data from
online cash
registers
VAT Taxpayers (B2B):
Importers
Manufacturers
Wholesalers
VAT Taxpayers /
Non-VAT Taxpayers (B2C):
Retailers of goods and services

26. 26
DTT Solutions in Core Tax System Landscape
CORE TAX
SYSTEM
Workflow/Case management
Taxpayer Registration
TIN Generation
Filing requirements identification
Taxpayers Database
Filing conversion & Document
management
Validations
Payments
Taxpayer accounting
Reconciliation
Reporting
User Accounts
Status tracking
Notifications
Identification/Selection
Notifications
Monitoring/Risk management
Compliance data warehouse
Compliance system
ONLINE TAX
SYSTEM
Electronic filing and payment (Forms, document management, etc.)
Taxpayer Web Portal (Account viewing, support services, FAQ)
Management
Information System
Executive reports and Dashboards
Operational Reporting Performance Management Reports
DTT
Solutions
Track & Trace Online ECRs
Self employed &
Consumer
eVAT / eInvoice
Our solutions can be deployed independently from the core tax system but will require integration with some legacy applications