Cabinet adopts draft for the Second Cash Register Act
On 23 September 2026, the Bundeskabinett (Federal Cabinet) adopted the draft of an “Act on the Further Development of Cash Register Records and the Combating of Tax Evasion as well as the Further Digitalisation of Commercial and Tax Records”. The draft is also referred to as the Second Cash Register Act and builds on the already existing requirements for electronic recording systems.
The aim of the initiative is to further develop cash register records, reduce the risks of tax evasion and, at the same time, further digitalise commercial and tax record-keeping obligations. The German Federal Government envisages changes in particular regarding receipts, electronic cash register systems and the retention of certain documents.
The government draft was submitted to the Bundesrat (Federal Council) on 9 October 2026 as printed matter 585/26. It was classified as particularly urgent, which shortened the Bundesrat’s period for issuing an opinion. According to the envisaged timetable, the legislative procedure is to be completed in 2026.
Paper receipts to be replaced by digital receipts from 2028
Electronic provision of receipts as the standard case
A key component of the draft concerns the issuance of receipts. From 2028, the existing obligation to issue paper receipts is to be abolished. Instead, customers are to be given the option of retrieving the cash register receipt digitally when making a purchase.
According to the available information, electronic provision may take place, for example, via technical solutions such as a QR code, a download link or provision in a customer account. The draft does not provide for any obligation on customers to actually accept the electronic receipt.
According to press release No. 19/2026 of the Bundesfinanzministerium (Federal Ministry of Finance), Federal Minister of Finance Lars Klingbeil justified the initiative on the grounds that the obligation to issue paper receipts would be abolished and digital receipts should become the standard.
Paper receipt on request remains envisaged
According to the draft, the abolition of paper receipt issuance is not equivalent to a complete exclusion of paper receipts. If customers continue to request a paper receipt, a corresponding obligation to issue one is to remain in place.
The German Federal Government associates the switch to digital receipts with relief for businesses from bureaucracy and material costs. At the same time, associations have pointed out that the receipt obligation will not be abolished entirely, but is to be converted into an obligation to provide receipts electronically. In this context, the Handelsverband Deutschland refers, among other things, to technical issues that remain unresolved, for example in connection with the further development of the DSFinV-K.
Electronic cash register obligation planned for certain businesses
Turnover threshold of EUR 100,000
The draft provides that, from 2028, § 146b AO (German Fiscal Code) is to regulate a cash register obligation for businesses with total annual turnover of more than EUR 100,000. According to the explanatory memorandum, open cash boxes in this area are to be replaced by electronic recording systems.
The background is that, in the view of the Federal Ministry of Finance, open cash boxes can facilitate abuse because turnover is sometimes not recorded at all or only recorded by hand. According to the published information, there are still around 115,000 open cash boxes throughout Germany.
Where the use of electronic cash register systems is mandatory, the requirements of § 146a AO are to be decisive. This refers in particular to systems that have a technical security device and generate primary records in accordance with the requirements of the tax authorities.
Commencement of the cash register obligation and exceptions
According to the government draft, the cash register obligation is to apply from 1 July of the year following the year in which the relevant turnover threshold is exceeded. By contrast, the earlier ministerial draft had still provided for 1 April of the following year.
In cases in which the relevant turnover thresholds are already exceeded in 2026, the cash register obligation is, according to the supplementary information, to apply as early as 1 January 2028. The competent Finanzamt (tax office) is to be notified within one month after the cash register obligation arises that the turnover threshold has been exceeded.
Taxpayers who accept cash payments but whose cash turnover in the calendar year is below EUR 12,000 are to be exempt from the cash register obligation. In addition, a separate exemption ordinance is envisaged, through which further exemptions may be regulated. Categories such as honesty boxes or certain forms of direct marketing are being considered.
Further measures to combat tax evasion
New tax offence and new administrative offences
In addition to the cash register obligation, the draft contains further provisions on sanctioning certain breaches of duty. A separate tax offence is envisaged for the use and placing on the market of manipulation programs for electronic recording systems.
In addition, two new administrative offence provisions are to be created. According to the published information, these concern:
- failure to provide a receipt,
- the unlawful non-use of an electronic recording system with a technical security device despite an existing cash register obligation.
In the case of the criminal offence of falsification of technical records, tax authorities are in future to be permitted to conduct investigations themselves, insofar as electronic recording systems are concerned. These provisions form part of the legislative approach to recording manipulations of digital primary records more effectively.
Odometers for rental cars and pooled on-demand transport
The draft also provides for a tax obligation to use an odometer with a digital interface for connection to a technical security device. This is intended to place taxis and rental cars on an equal footing.
According to the supplementary information, this obligation is to apply to rental cars and vehicles used in pooled on-demand transport from 2029. The draft legislation thus extends the scope of digital record-keeping obligations beyond classic cash register transactions.
Digitalisation of retention obligations
Change under commercial law for financial statements and opening balance sheets
Compared with the ministerial draft, the government draft dispenses with accompanying provisions on delay payments or transfer payments, on the coordination competence of the Bundeszentralamt für Steuern (Federal Central Tax Office) and on the Gewerbezentralregister (Central Trade and Industry Register). Instead, the initiative was expanded to include provisions on the digitalisation under commercial law of the retention of financial statements and opening balance sheets.
An amendment to § 257 para. 3 sentence 1 HGB (German Commercial Code) is envisaged. Accordingly, in future, financial statements and opening balance sheets are also to be capable of being retained digitally as reproductions on image carriers or other data carriers, provided that they correspond visually and are available at all times.
For tax purposes, it is also envisaged that purely tax-related opening balance sheets and annual financial statements will no longer necessarily have to be retained in paper form. An amendment to § 147 para. 2 AO is planned for this purpose.
Relief and additional conversion effort
The ministerial draft of 7 August 2026 still bore the title “Act on the Introduction of a Cash Register Obligation, the Combating of Tax Evasion and the Further Digitalisation of Tax Law”. According to the information contained therein, the annual compliance costs for the economy were to decrease by around EUR 88.89 million, while one-off compliance costs of around EUR 98.748 million were envisaged.
Associations assess individual elements differently. The Zentralverband des Deutschen Handwerks considers the planned start on 1 January 2028 to be rushed and calls for the cash register obligation to be coordinated in advance with technical requirements for cash register systems and requirements for e-invoicing. At the same time, the exemption for cash turnover below EUR 12,000 was classified as a step in the right direction.
The ZDH also considers the stated compliance costs to be unrealistic and refers to possible acquisition and follow-up costs of digital receipt provision. These assessments do not alter the fact that the draft is still in the legislative procedure and that changes remain possible as the procedure continues.
Legislative procedure and further timetable
Submission to the Bundesrat and deliberation in the Bundestag
The government draft was submitted to the Bundesrat on 9 October 2026. The first reading in the Bundestag (German Federal Parliament) is scheduled, according to the published agenda, for Friday, 6 November 2026, with a debate time of 30 minutes. The draft is then to be referred to the committees.
According to the envisaged procedural timetable, the Finance Committee of the Bundesrat is to consider the draft on 5 November 2026. The plenary session of the Bundesrat is scheduled for 20 November 2026. In the Bundestag, a hearing in the Finance Committee is planned for 7 December 2026.
According to the published timetable, the committee report is to be available on 16 December 2026. The legislative resolution of the Bundestag and the approval of the Bundesrat are then scheduled for 18 December 2026. Since the parliamentary procedure has not yet been completed, the substance of the draft may still be amended.
Significance for businesses with cash transactions
The draft legislation particularly affects businesses that conduct cash transactions and have so far used open cash boxes or issued receipts in paper form. The planned provisions combine digital receipt provision with a cash register obligation for certain turnover levels and additional sanctions for manipulation or breaches of duty.
For businesses in retail, hospitality, service sectors and other cash-intensive fields of business, the draft may therefore have considerable organisational and tax law significance. At the same time, it should be noted that this is currently a government draft and that the final text of the law will only be determined after completion of the legislative procedure.
MTR Legal Rechtsanwälte advises companies, investors and high-net-worth individuals on tax law matters with an international dimension as well as on domestic matters. Those who would like to obtain a legal assessment of the planned changes to cash register records, digital receipts and tax retention obligations can find further information under Legal advice in tax law.
