Background

With effect from 1 January 2017, cash register systems offered on the Norwegian market must comply with the Cash Register Systems Act and the Cash Register Systems Regulations. Entities with a reporting obligation must register and document cash sales using such cash register systems from 1 January 2019, with reference to the new Section 10 a of the Bookkeeping Act. Cash sales means the sale of goods and services where the purchaser's payment obligation to the vendor is settled on delivery, using a payment card or cash as a means of payment, with reference to the Cash Register Systems Act Section 2a.

It is only cash sales that are required to be registered using a cash register system. Questions have been raised concerning whether it is permitted to also register credit sales in a cash register system, and how the credit sales should be shown on reports and receipts.

Regulations

Cash sales must be registered using a cash register system. The Cash Register Systems Regulations define detailed requirements for X and Z reports that show, among other things, total cash sales and cash sales broken down by main groups and means of payment. Requirements are also defined for different types of receipts, such as sales receipts, return receipts and delivery receipts. The receipts must be summarised in the X and Z reports, detailed by number and amount.

Contents of the sales receipt

The Cash Register Systems Regulations Section 2-8-4 refers to the Bookkeeping Regulation Section 5-3-2a for the requirements for the contents of the sales receipt. In addition, the sales receipt must contain information about the means of payment and the ID number of the point of sale, and the word ‘Salgskvittering’ (‘Sales receipt’) must appear at the top of the receipt. If a payment terminal is integrated with the cash register system, the sales receipt must also contain a transaction ID.

The Bookkeeping Regulation Section 5-3-2a refers to the general requirements for the content of a sales document; see sub-chapter 5-1 of the Regulation for the content of the sales receipt. In the case of cash sales, the receipt must also be time-stamped. Cash sales by a retailer are, as a main rule, exempt from the requirement to specify the purchaser on the receipt[1].

In the case of credit sales, the sales receipt must always specify the purchaser by name and address or organisation number, with reference to the Bookkeeping Regulation, Section 5-1-1 (1), no. 2; see also Section 5-1-2 (1).

Delivery receipt

If the cash register system is used for registration of credit sales which are to be invoiced at a later time, a receipt must be printed which shows what goods and services have been supplied, with reference to the Cash Register Systems Regulations Section 2-8-7.

The number of delivery receipts and amounts must be specified in X and Z reports; see Section 2-8-2 (v), and Section 2-8-3.

The Directorate of Taxes' comments on the Cash Register Systems Regulations Section 2-8-7 say that entities subject to a bookkeeping obligation which exceptionally have credit sales and which do not invoice these specially, can register the sale in the usual way and print a sales receipt. Such sales will then be included in the X and Z reports as ordinary cash sales. In order to explain differences between counted cash holdings and the Z report, a copy of the sales receipt or a reference to the sales receipt number must be attached to the daily settlement.

If receipts for credit sales are regularly printed at the point of sale, the number and amount must be specified in the X and Z reports, with reference to Section 2-8-2 (2). The same applies to payments and returns which concern credit sales.

Requirement to specify the sale in the customer specification 

Credit sales must be itemised in the customer specification, regardless of whether the customer is a private individual or a business. See the Bookkeeping Regulation Section 3-1 (1) no. 3. The second paragraph defines more precisely when cash sales must be itemised. These provisions relate to the requirement to specify the purchaser in the sales document; see Section 5-3-2a (3).

The customer specification must contain all transactions with customers by period, i.e. both sales transactions and payment transactions. The items must be specified in an ordered sequence with documentation date and documentation references.

Entities subject to a bookkeeping obligation that primarily sell for cash can specify credit sales by presenting copies of the sales documentation ordered by customer; see the Bookkeeping Regulation section 3-1 (2).

Credit sales registered at the point of sale but not specially invoiced

It is not unusual for business customers to have an account with retailers and for sales to be recorded as they occur at the point of sale, but for a sales document to be issued at a later date, e.g. monthly, via the company's invoicing system. The invoice must satisfy the requirements for the content of a sales document; see the Bookkeeping Regulation, sub-chapter 5-1.

When the invoice data is registered at the point of sale, a delivery receipt must be printed for the customer; see the Cash Register Systems Regulations Section 2-8-7. The delivery receipts must be specified in the X and Z reports.

The invoiced sale and payments must be specified in the customer specification; see the Bookkeeping Regulation Section 3-1 (1) no. 3.

Credit sales registered at the point of sale and "invoiced" later from the point of sale

Requirement for delivery receipt

In this example, the customer has an account with the business, and the sale is registered as it occurs at the point of sale each time the customer purchases goods/services. The customer settles up his purchases, for example, every 14 days or monthly. At this time, a sales receipt is printed for the customer from the point of sale.

The Directorate of Taxes' position is that, in such cases too, a delivery receipt must be printed when a sale is registered without a sales receipt being printed. The delivery receipts must be specified in the X and Z reports.

When can a sales receipt be printed from the point of sale?

The Cash Register Systems Regulations Section 2-8-3 Z-reports second paragraph states that:

It must not be possible to prepare a Z report without all sales having been completed.

The question is whether this provision prevents account-holding customers being issued with a sales receipt from the point of sale at a later time than the time of the transaction. The Directorate of Taxes believes that the provision does not prevent this, provided that the sale is registered in the cash register system under a named customer, and that a delivery receipt is printed out at the time of the transaction.

The sales receipt must satisfy the requirements concerning the information that must be given on a sales document (see sub-chapter 5-1 of the Bookkeeping Regulation), including in particular that the customer must be specified by means of their name and address or organisation number. The same applies in connection with returns that take place at the point of sale; see the Cash Register Systems Regulations Section 2-8-5 Return receipts. The sale, returns and payment must be specified in the customer specification; see Section 3-1 (1) no. 3.

Specification of the sale in the X and Z reports

It follows from the Cash Register Systems Regulations Section 2-8-2 (2), with reference to  Section 2-8-3, that the number and amount of receipts for credit sales printed from the point of sale, must be specified in the X and Z reports. The same applies to payments and returns which concern credit sales.

If the cash register system is not integrated with the accounting system, the cash register system must produce documentation (a sales log) showing the credit sale specified for each customer, so that the enterprise can itemise the sale and payment transaction in the customer specification. The documentation must be designed so that the credit sale can be posted with the specifications required in terms of product groups[2] and tax/charge treatment. Alternatively, the cash register system can arrange for all the sales receipts and payments relating to credit sales to be printed out and used as posting data.

Credit sales "invoiced" via the cash register system at the time of sale

For credit sales where a sales receipt is printed from the cash register system at the time of sale, no delivery receipt is required.

In other respects, the same solution as referred to under "Credit sales registered at the point of sale and "invoiced" later from the point of sale" above can be used. In the cases of exceptional credit sales, the simplified solution as referred to under "Regulations" above can be used.