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Effects of electronic cash registers on reported revenue

Author

Listed:
  • 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)

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.

Suggested Citation

  • Per Engström & Johannes Hagen & Alireza Khoshghadam & Andrea Schneider, 2025. "Effects of electronic cash registers on reported revenue," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 32(2), pages 566-594, April.
    • Handle: RePEc:kap:itaxpf:v:32:y:2025:i:2:d:10.1007_s10797-024-09844-x
    DOI: 10.1007/s10797-024-09844-x
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    More about this item

    Keywords

    Tax compliance; Tax enforcement; Electronic cash register; Regulatory change; Small business;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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