The Receipt That Can’t Lie - Real Time Tax Monitoring That Works

Transcript: A Conversation with Goran Todorov, Founder & CEO of Data Tech International, on TaxCore and the Future of Digital Fiscalization

Introduction & Welcome

Nicole: With a solution like TaxCore, the government is in charge—enabling efficient and secure monitoring of all transactions. Data is signed and encrypted at the moment of sale, and can only be decrypted by the tax authority. This means the taxpayer, the customer, and the tax authority all have the same view of the transaction data the instant the sale occurs. It works regardless of internet access, whether the transaction happens on a phone app, a computer, an ERP system, or a point-of-sale terminal.

Today, I’m joined by Mr. Goran Todorov, founder and CEO of Data Tech International, the company behind the revolutionary TaxCore solution. Goran, welcome. It’s a pleasure to have you here.

Goran Todorov: Nice to be here. Thank you, Nicole.

Digital Fiscalization and Real-Time Tax Monitoring

Nicole: Today, we’re discussing a particularly interesting topic for tax administrations worldwide: digital fiscalization and real-time tax monitoring. Let’s start with a simple question: What is Data Tech International? Who is Goran Todorov? And what is TaxCore?

Goran Todorov: We are a regulation technology company specializing in software solutions tailored for tax authorities. Our goal is to enable efficient and secure monitoring of all transactions at the point of sale—whether on-premise or in the cloud—by taxpayers who are obligated to collect indirect taxes on behalf of the government. We do this globally.

Taxation, as a field, has lagged behind in the digital evolution. Businesses today—from cloud service providers like Uber and Amazon to digital marketplaces—are evolving rapidly. Tax authorities often struggle to understand how these businesses operate and where sales actually occur. That’s where we come in.

We provide a turnkey solution for governments to catch up and keep pace with taxpayers and businesses. Our mission is to bridge the gap between efficient monitoring for governments and business continuity for taxpayers.

Goran’s Journey: From Student to Tax Tech Pioneer

Nicole: While researching, I noticed some people refer to you as a kind of IT and tax wizard. What sparked your curiosity to move from IT into solving global tax problems? And what was the vision that drove you in the beginning?

Goran Todorov: It all started back in 2003, when I returned from the U.S. after studying there. At the time, Serbia had fewer opportunities, but one thing caught my attention: fiscalization was just beginning in Serbia. I was studying computer science and programming, so the technology behind fiscalization intrigued me.

During my college years, I worked in hospitality, construction, car sales, even fireworks—you name it. Behind every cash register, I noticed a certain level of scheming. Indirect taxes are the responsibility of taxpayers to collect and submit to the government, but at the end of the week or month, businesses often face the temptation to underreport or delay submissions. This isn’t fair to the government, the customers paying taxes, or the honest taxpayers trying to compete on a level playing field.

When I first encountered fiscalization, I saw it as a transparent and easy way to collect sales data and split it three ways. However, the methods used back then were primitive. I identified issues with the technical specifications and legislation, and I wanted to improve them.

In 2007, I had the opportunity to work as a consultant for the Ethiopian Revenue and Customs Authority. This experience allowed me to introduce something different from what I’d learned about fiscalization. It motivated me to continue researching and evolving the concept, focusing on business continuity—ensuring that businesses aren’t disrupted by government mandates while still enabling efficient monitoring.

That’s when I realized: tax authorities around the world need a turnkey solution. Governments exist to support small businesses, and I understood the challenges from both sides—having worked in business and seen the gaps in government systems. That’s the space we aimed to fill with our solution.

What Is TaxCore? Adding a Security Layer to Every Transaction

Nicole: Let’s talk about your modern solution. What is TaxCore, and how does it differentiate from existing tax collection systems? Can you walk us through how it works?

Goran Todorov: TaxCore adds a security layer to every transaction. Taxpayers can use any device—phone apps, computers, ERP systems, point-of-sale terminals—to produce an invoice or receipt. What TaxCore adds is a security module that the POS system communicates with. This module signs and encrypts the transaction data at the moment of sale. The encrypted data can only be decrypted by the tax authority, ensuring that the taxpayer, customer, and tax authority all have the same view of the transaction instantly.

The submission of this data to the tax authority can happen in near real-time. For example, if there’s no internet access at the moment of sale, the data is still secured and can be submitted later without compromising its integrity.

We also wanted to include the customer in this process. That’s why we offer verifiable invoices. Customers can use their phones to check and verify an invoice. By verifying, they’re also anonymously submitting data to the tax authority. This creates a flow of information from multiple sources, but it all ties back to a single, unitary invoice with a digital stamp at the moment of creation.

This approach reduces tax evasion by encrypting the transaction at the point of sale. Nothing can be sold without leaving a digital trace. Customers play a key role here—they need to ask for invoices, whether for warranties or as proof of purchase. We’ve even created incentives for customers to request invoices, even for small purchases.

For businesses, TaxCore operates like a black box—it records everything without disrupting their operations. Refunds, voids, or additional sales are all captured. This prevents fraud because there’s no way to go back and manipulate records after the fact. The invoice is the single point of truth: if it’s missing, the sale didn’t happen; if it’s modified, it’s not valid. We ensure that once a record is produced, it remains unaltered forever—or at least for the 10-year warranty period we provide.

Benefits for Governments, Businesses, and Honest Taxpayers

Nicole: Why is this system important? What benefits does it offer to countries, taxpayers, and governments?

Goran Todorov: In short: transparency and fairness.

Customers who pay taxes on products or services deserve the comfort of knowing that their taxes are going where they’re supposed to. For governments, TaxCore provides real-time visibility into transactions, which helps combat underreporting and tax evasion.

For businesses, especially honest taxpayers, the system reduces the burden of reconciliation. At the end of the month, they can see exactly how much indirect tax they’ve collected and how much they owe. This simplifies reporting and reduces errors.

Tax authorities also benefit from desk audits. They can analyze sales trends, compare businesses, and make data-driven decisions—all from their offices. Enforcement officers can now arrive at a business prepared, knowing exactly what to inspect. This means fewer interruptions for honest taxpayers and more targeted enforcement.

Customers, too, gain assurance. When they receive an invoice, they can scan it to verify that the transaction was legitimate and that the tax went to the right place. If they don’t receive an invoice, they can report the business to the tax authority. This creates a self-policing ecosystem where compliance is incentivized.

Fiji Case Study: Lower Tax Rates, Higher Revenue

Nicole: I noticed that Fiji was the first country to implement TaxCore, and it even gained attention from Western media. Can you tell us more about that? How did a small Pacific island become a pioneer in tax technology?

Goran Todorov: We’re very proud that Fiji was the first to adopt TaxCore. Before TaxCore, we had developed systems, but they weren’t off-the-shelf solutions. Fiji allocated a budget in 2015 to explore and introduce transaction monitoring, which sparked my interest. I didn’t initially travel to Fiji, but when I received a call from them, I packed my bags and went.

What’s fascinating is that Fiji reduced its tax rate before implementing TaxCore, and this was welcomed by the taxpayer community. Despite the lower rate, they ended up collecting more revenue because the system ensured proper collection of existing taxes. This proves that higher tax rates don’t necessarily lead to higher revenue—if rates are too high, taxpayers are more incentivized to underreport.

In Sweden, for example, they introduced fiscalization in 2008 after evidence showed that 70% of sales were being underdeclared at the point of sale due to a 25% VAT rate—the highest in Europe at the time. With monitoring in place, compliance improved, and collections increased.

In Fiji, businesses welcomed the system because it automated processes and reduced the burden of reporting. Small businesses appreciated the transparency, while larger businesses benefited from streamlined operations.

The Submarine Test & Offline Resilience: Cyclone-Proof Technology

Nicole: Speaking of remote locations, how does TaxCore handle offline scenarios? For example, what if a business is on a remote island with poor connectivity?

Goran Todorov: From the ground up, we designed TaxCore with offline resilience as a core principle. Our biggest advantage is that we can guarantee a sale is recorded even without internet connectivity. For example, a taxpayer selling hot dogs in a submarine with no internet can still register sales. The data is securely stored and uploaded later without compromising integrity.

Many tax authorities fear being a single point of failure, but we’ve decoupled the back office from the businesses. Businesses can operate without any connectivity to the tax authority’s data center.

We put this to the test in 2017 or 2018 during a cyclone in Fiji that caused a blackout at the main data center. Businesses unaffected by the cyclone continued operating normally because they were either using a secure element on-premise or a virtual Sales Data Controller (SDC) in the cloud (not tied to the main data center). Once the data center was restored, all transactions were reconciled seamlessly. Zero losses—every invoice issued was accounted for.

This resilience is a cornerstone of TaxCore. We issue digital certificates to taxpayers, similar to how you have a debit or credit card. Each secure element bears the taxpayer’s authentication, requires a PIN to activate, and can be revoked if lost or compromised. This ensures no one can impersonate a taxpayer, and every transaction is tied to a verified digital identity.

Samoa Implementation: COVID, Political Change & Voluntary Compliance

Nicole: Let’s move to another Pacific island—Samoa. TaxCore was implemented there as well, but I read there were political changes during the process. How did that play out?

Goran Todorov: In Samoa, we faced a unique challenge. The minister at the time told me, “I have many shop owners who don’t even want to speak English during enforcement. I need to make this digital. I need to speak in numbers—I can’t teach them accounting.” He realized that technology could let the numbers tell the truth.

We went to Samoa for what was supposed to be a one-month trip to finalize the system and build capacity. But then, COVID-19 hit, and the borders closed. We were stranded for three additional months. During that time, we worked tirelessly to ensure the Samoa Revenue Authority could operate the system independently. It paid off—after we left, they were fully capable of managing TaxCore on their own.

However, political changes followed. The government at the time had closed borders, separating families, which created significant backlash during the election. A new government came in and announced plans to abolish the Tax Invigilation Monitoring System (TIMS). We expected the project to be shut down.

But the revenue authority was so confident in the system—and saw such improved compliance—that they convinced the new minister to continue. They argued that abandoning the system would be a huge step backward. As a result, Samoa not only continued with TaxCore but did so without issuing a single penalty. Compliance was voluntary—taxpayers improved their reporting because they saw the benefits.

During COVID, when the island was closed, Samoa was collecting more revenue than before. The system worked, and the people felt its impact.

Zappers, Phantomware & Prof. Richard Ainsworth

Nicole: You mentioned collaborating with Professor Richard Ainsworth from Boston University. He coined terms like "zapper" and "phantomware". Can you explain these concepts and their relevance to TaxCore?

Goran Todorov: Professor Ainsworth’s work was groundbreaking. He described zappers and phantomware—tools used for electronic sales suppression. These are methods to disguise or delete audit trails in accounting systems, making it appear as though certain sales never happened.

For example, a business might use two sets of books: one for the accountant and one for the owner. This is a misdemeanor. But if a business uses a single system and alters the digital trail—deleting items from receipts to reduce reported turnover—that’s a criminal offense because the records have been falsified.

This issue gained attention in New York State, where Senator Liz Krueger held a public hearing. Sting operations revealed that vendors were openly offering these fraudulent tools. The only state to take strong action was Washington State, which declared that if a taxpayer was caught using electronic sales suppression, they could retain their business license only if they agreed to use an electronic monitoring system—like TaxCore—for a probationary period.

This is where TaxCore came in. The taxpayer’s POS system connects to TaxCore, giving the Department of Revenue real-time visibility into sales. This approach could have spread widely, but COVID-19 disrupted momentum. Still, the framework remains: tax authorities can target specific sectors (e-commerce, retail, hospitality) and use TaxCore as a probation tool for non-compliant businesses.

Global Experience: Europe, Africa, USA (Washington State)

Nicole: Your work isn’t limited to the Pacific. You’ve also had experiences in Europe, Africa, and the U.S.. What have you observed across these regions?

Goran Todorov: We’ve worked all over the world—from the North Pole to the South Pole (though the penguins weren’t very excited about fiscalization). Everywhere we’ve presented TaxCore, the response has been overwhelmingly positive. However, success depends on political will and leadership within the tax authority.

Public sector employees often move slowly, but when we find a leader who wants to make a difference, we can kick off a project immediately. No country is too big for TaxCore. For example, in India or China, with millions of businesses, transactions can be reported to decentralized endpoints—there’s no need for a single, centralized system.

Our core business is consultation and capacity building. We help tax authorities craft legislation and design technical specifications that are acceptable to taxpayers. In the Pacific, for instance, we have zero employees supporting the system because it’s self-sustainable. The tax authorities operate it independently.

Why TaxCore? Why DTI? Why Goran Todorov?

Nicole: If a tax authority director is listening and considering TaxCore, what do they need to have in place for the project to succeed?

Goran Todorov: Political support is the number one factor. Without it, nothing moves forward. Once there’s top-down determination, the next step is assembling a dedicated project team within the tax authority to work hand-in-hand with us.

It’s important to note that DTI’s only customer is the tax authority. We don’t sell to taxpayers—our revenue comes solely from governments. This means we’re impartial and focused on delivering a solution that works for the authority, whether it’s used by one taxpayer or a million.

Taxpayers can download our app for free, obtain a certificate from the revenue authority, and be up and running in 30 seconds to a minute. They have full freedom to choose any compliant solution on the market. Our role is to ensure interoperability—that all systems adhere to a standard so that machine-to-machine communication is seamless.

Changing Taxpayer Habits: Incentivizing Receipts

Nicole: How do you change the habits of taxpayers—especially in developing countries—to ensure they save and request receipts?

Goran Todorov: Incentivization is key. We’ve moved beyond paper receipts to a digital trail, and many countries have adopted fiscal lotteries—where customers who request receipts can win prizes. We’ve taken this further with QR codes and what we call a "Consumer Compliance Award".

Here’s how it works: When a customer scans a QR code on their receipt, they’re verifying the invoice and anonymously submitting data to the tax authority. By doing so, they automatically enter a raffle for instant awards sponsored by businesses. This gamification encourages customers to ask for receipts—even for small purchases like bubble gum—because they might win something.

This approach has been highly effective. Customers feel empowered, and businesses see higher compliance because taxpayers know their transactions are being monitored.

Personal Journey & Motivation

Nicole: What has this journey brought you personally? You’ve worked with Pacific Islands, collaborated with global experts like Professor Ainsworth, and even been featured on CNN for Fiji’s progress with TaxCore. What stands out to you?

Goran Todorov: It’s been incredibly rewarding. Seeing the impact of our work—knowing that our developers, QA team, and everyone at DTI can see their efforts manifest in the real world—is deeply fulfilling.

This journey wasn’t about the money. If it were, I’d have gone bankrupt long ago. It was about filling a gap—no one else was offering this kind of solution to tax authorities. We saw an opportunity to make a difference, and we took it.

One of my proudest moments was in 2009, when we created the first proof of concept for the Sales Data Controller (SDC). At the time, no such technology existed. We had the technical description, the device, and the vision. Professor Ainsworth, who had been researching how technology could combat tax evasion, saw our proof of concept and realized: “This is what I’ve been looking for.” We collaborated on several papers, including one from 2013 titled “Digital Invoice Customs Exchange”, which essentially described what we now know as VAT in the Digital Age—a major initiative in the European Union.

We’ve always believed in transparency. Our product descriptions, technical specifications—everything is an open book. Anyone can build TaxCore, but it takes significant effort, expertise, and resources. That’s why we’ve faced resistance—we were pioneers in a space where no one else was operating.

We’ve also dealt with unloyal competition. Some companies bid on tenders simply because they’re in ICT, without truly understanding the requirements. To address this, we created a 15-point manifesto—a set of non-negotiable requirements that any tax authority should include in their procurement process. If they do, they’ll end up with a system that actually works.

The Future: AI, Digital Fingerprint & VAT in the Digital Age

Nicole: What’s next for TaxCore? Where do you see tax administration in the next 5–10 years, especially with the rise of artificial intelligence?

Goran Todorov: We’re already integrating AI into TaxCore. Over the next decade, tax authorities will continue experimenting with digital transformation. The Digital Invoice Customs Exchange concept we pioneered is now being adopted globally, including in the EU’s VAT in the Digital Age initiative.

However, AI is only as good as the data it’s trained on. If you feed it bad data, you’ll get bad results. That’s why we’re building machine learning models into TaxCore to detect anomalies and predict fraud. This will give tax authorities a proactive edge, allowing them to anticipate issues before they escalate.

The foundation we’ve built with TaxCore is crucial: the digital fingerprint of every taxpayer. When a transaction enters the tax authority’s database, we know exactly where it came from—which sales point, which authorized person. This traceability is already in place, and it’s what makes AI integration possible.

Final Thoughts & Closing

Nicole: In a few words, why should tax authorities choose TaxCore, DTI, and Goran Todorov?

Goran Todorov: Experience and know-how. We’ve worked across jurisdictions, currencies, and accounting systems worldwide. Our solution solves the problem at the moment of transaction creation, preventing avoidance and evasion. We’ve standardized processes in a chaotic environment, and we understand the burden on taxpayers—they’re tasked with collecting taxes on behalf of the government, which creates costs and complexities.

Our role is to be peacemakers—bridging the gap between taxpayer compliance efforts and government reconciliation. We fuel transparency, efficiency, and fairness.

Nicole: Ladies and gentlemen, Mr. Goran Todorov, CEO and founder of Data Tech International and the father of TaxCore. Thank you very much.

Goran Todorov: Thank you, Nicole. It’s been a pleasure.