The Federal Ministry of Finance has published a new draft bill for a law to mandate the use of electronic cash registers, combat tax evasion, and further digitize tax law. Among other things, the draft implements the measures agreed upon in the coalition agreement Requirement to use a cash register for businesses with annual sales of €100,000 or more (effective January 1, 2027) and the elimination of the current requirement to issue paper receipts (effective January 1, 2028). Instead, a mandatory electronic receipt system is to be introduced in the future. In addition, the draft provides for further measures designed to make tax evasion and tampering with electronic record-keeping systems more difficult and to expand the tax authorities’ audit capabilities.
There are currently about 2.2 million cash registers and 114,000 open-counter cash registers. Under the planned mandatory cash register requirement, all relevant business transactions must generally be recorded via an electronic recording system in the future. In particular, this system must comply with the requirements of Section 146a(1) of the German Fiscal Code (AO), be protected by a certified technical security device, and be capable of generating records in accordance with the tax administration’s digital interface for cash register systems (DSFinV-K). These regulations do not apply only to cash payments: Payments made by debit or credit card should also be recorded through the electronic recording system.
The requirement to issue paper receipts is to be completely abolished as of January 1, 2028. Instead, an obligation to provide supporting documents is to be introduced. In addition, the draft contains further measures to combat tax evasion. By expanding the tax authorities’ independent investigative powers in cases involving the falsification of technical records—to the extent that data from electronic recording systems is affected—the aim is to reduce coordination gaps between tax authorities and public prosecutors’ offices and to conduct proceedings more efficiently.
Obligation to Make Receipts Available Instead of the Obligation to Issue Receipts (Section 146a of the German Fiscal Code (AO))
Instead of a requirement to issue paper receipts, a mandatory requirement to provide electronic receipts is to be introduced. The receipt must be made available in a standardized data format. There are no restrictions on the technology used to provide the receipt. There are no technical requirements specifying how the receipt must be made available or transmitted to the customer. For example, it is permissible for the customer to receive the electronic receipt directly via a screen display (e.g., in the form of a QR code). The receipt may also be transmitted, for example, as a download link, via Near-Field Communication (NFC), by email, or directly to a customer’s account.
The requirement to provide electronic receipts does not impose an obligation on the parties involved in the transaction to accept the electronic receipt. The customer’s right to a paper receipt under Section 368 of the German Civil Code (BGB) remains in effect.
This is scheduled to take effect on January 1, 2028.
Exceptions to the Requirement to Enroll in Health Insurance
A regulation is intended to establish exceptions for certain areas. In addition, the regulation may establish reporting requirements regarding the commencement and termination of exemptions. By referring to the relief provision in § 148 of the German Fiscal Code (AO), the regulation also aims to allow for further exemptions in cases of undue hardship on a case-by-case basis. A case where an exemption may be granted could arise, for example, if a taxpayer exceeds the revenue threshold due to income from various activities. An exemption is also conceivable if the revenue threshold is exceeded solely as a result of a one-time event.