Government Draft on the Further Development of Cash Register Records
On 6 November 2026, the Deutsche Bundestag (German Federal Parliament) held its first debate on the draft Act on the further development of cash register records and the combating of tax evasion, as well as on the further digitalisation of records required under commercial and tax law, which had been introduced by the Bundesregierung (German Federal Government). The draft legislation is published as Bundestagsdrucksache 21/8867 (Bundestag printed paper 21/8867).
Following its first reading, the Bundestag referred the draft to the Finanzausschuss (Finance Committee) as the committee with primary responsibility. The Act has therefore not yet been adopted. The further parliamentary deliberations and their outcome remain to be seen.
Shortened Deadline for the Bundesrat’s Opinion
The Bundesregierung classified the draft legislation as particularly urgent. This shortened the deadline for the opinion of the Bundesrat (German Federal Council) to three weeks.
Electronic Recording of Business Transactions
A key element of the draft concerns the mandatory use of electronic recording systems. The Bundesregierung justifies this rule on the grounds that open cash boxes without electronic recording continue to be used, creating an increased risk that sales will not be recorded in full.
In explaining the planned obligation, Bundesfinanzminister (Federal Minister of Finance) Lars Klingbeil stated that digital cash registers are intended to enable all sales to be recorded.
Turnover Thresholds for the Cash Register Requirement
The ministerial draft prepared by the Bundesministerium der Finanzen (German Federal Ministry of Finance), dated 5 August 2026, made the proposed obligation to use an electronic recording system conditional on total turnover exceeding EUR 100,000. In addition, the government draft includes a threshold of EUR 12,000 for cash turnover.
Accordingly, the following thresholds are particularly relevant to the proposed cash register requirement:
- Total turnover must exceed the threshold of EUR 100,000 specified in the draft.
- Taxpayers with cash turnover of less than EUR 12,000 in a calendar year are to remain exempt from the obligation.
No determination is made at this point as to which calendar year is to be used when assessing the turnover thresholds.
Inclusion of Agricultural and Forestry Businesses
The scope is expressly intended to include agricultural and forestry businesses. The proposed exemption for taxpayers with cash turnover of less than EUR 12,000 in a calendar year also applies in this sector.
The proposed rule may therefore affect not only bricks-and-mortar retailers or hospitality businesses. Instead, the decisive factors are the turnover criteria laid down by law and the nature of the recorded business transactions.
New Requirements for Providing Receipts
With effect from 1 January 2028, the draft provides for a change to the existing paper-based receipt issuance rules. As a general rule, it is to be possible to provide receipts electronically without having to issue a paper receipt for every business transaction.
Methods of Electronic Provision
According to the explanatory memorandum to the draft, several technical methods may be used to transmit or provide receipts electronically:
- The receipt may be accessed via a QR code.
- It may be provided via a download link.
- Transmission by email is to be permitted.
- The receipt may be stored in a customer account.
- Transmission by means of near-field communication, particularly NFC, is also envisaged.
If the customer requests a paper receipt, one is still to be made available. The existing right to be issued with a receipt also remains unaffected.
Penalties for Breaches
The proposed obligations are to be enforced through administrative fine provisions. A breach of the cash register requirement is to constitute an administrative offence punishable by a fine of up to EUR 25,000.
A fine of up to EUR 5,000 is envisaged for a breach of the obligation to provide a receipt. As the legislative process has not yet been concluded, these are currently only proposed penalty provisions.
Expansion of Cash Register Inspections
Under the draft legislation, a Kassen-Nachschau (cash register inspection) is in future to be permitted directly at the place where the taxable activity is carried out. This applies in particular to situations in which business transactions are not recorded on permanently used business premises.
The planned expansion may therefore be relevant to mobile traders, fairground operators and stalls at Christmas markets, among others. The actual place of business is to be decisive.
Digital Interfaces in Certain Vehicles
In addition to the rules on electronic cash registers, the draft contains requirements for certain vehicles. Hire cars and vehicles used for pooled on-demand transport are to be fitted with odometers that have a digital interface.
This rule also serves to further digitalise tax-relevant records. It forms part of the broader approach of documenting business transactions electronically in a traceable manner.
No Tightening of the Rules on Voluntary Self-Disclosure Exempting Offenders from Prosecution
A previously discussed tightening of the requirements for a strafbefreiende Selbstanzeige (voluntary self-disclosure exempting an offender from prosecution) is not included in the government draft. In this respect, the draft focuses on the further development of cash register records, the digital provision of receipts and the inspection of tax-relevant records.
Further Legislative Process Remains to Be Seen
Following its referral to the Finanzausschuss, the draft legislation remains subject to the parliamentary process. Changes to the proposed turnover thresholds, obligations, technical requirements or ranges of fines therefore remain possible until the deliberations have been concluded. No final statutory rules are currently in place.
The proposed changes may affect a variety of business models and methods of accepting cash. Companies, investors and high-net-worth individuals with questions concerning the tax implications of the draft can obtain tax law advice from MTR Legal tailored to their specific circumstances.
