Effects of electronic cash registers on reported revenue

Per Engström (), Johannes Hagen (), Alireza Khoshghadam () and Andrea Schneider ()
Additional contact information
Per Engström: Uppsala University
Johannes Hagen: Centre for Entrepreneurship and Spatial Economics, Jönköping International Business School, Jönköping University
Alireza Khoshghadam: Centre for Entrepreneurship and Spatial Economics, Jönköping International Business School, Jönköping University
Andrea Schneider: Centre for Entrepreneurship and Spatial Economics, Jönköping International Business School, Jönköping University

International Tax and Public Finance, 2025, vol. 32, issue 2, No 8, 566-594

Abstract: Abstract We assess the impact of a Swedish regulatory change, which required businesses with any business-to-consumer transactions, whether by cash or card, to use a certified electronic cash register (ECR), on reported revenue. To do this, we use administrative data on the monthly reported revenue of all affected firms and a staggered difference-in-differences approach. Our findings indicate that there was an immediate increase of about 2.7–4.3% in reported revenue following the implementation of a certified ECR. However, the effect was temporary and diminished to zero after just a few months, which indicates that firms found innovative methods to underreport their revenue.

Keywords: Tax compliance; Tax enforcement; Electronic cash register; Regulatory change; Small business (search for similar items in EconPapers)
JEL-codes: H25 H26 M21 O17 (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10797-024-09844-x Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:itaxpf:v:32:y:2025:i:2:d:10.1007_s10797-024-09844-x

Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/10797/PS2

DOI: 10.1007/s10797-024-09844-x

Access Statistics for this article

International Tax and Public Finance is currently edited by Ronald B. Davies and Kimberly Scharf

More articles in International Tax and Public Finance from Springer, International Institute of Public Finance Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().