German tax offices tighten cash‑register inspections and warn of penalties for delayed bookkeeping

Germany’s tax authorities have expanded the scope of unannounced cash‑register checks (Kassenkontrollen), especially in sectors with heavy cash usage. In Baden‑Württemberg, audits of 162 barbershops, tattoo and nail studios found violations in 94 cases, with more than half of the examined registers deemed deficient. The most common infractions were improper cash handling, failure to issue receipts, lack of protection for electronic cash systems, and indications of illegal employment.

Tax adviser Roland Franz of Roland Franz & Partner stresses that German law requires business transactions to be recorded promptly and accurately under the German Commercial Code (HGB) and the Tax Code (AO). Since 1 January 2020, electronic cash systems must include a certified technical security device (TSE) to prevent post‑entry alterations. Non‑compliance can lead to tax assessments based on estimates, fines, criminal prosecution, and, in insolvency cases, possible imprisonment.

The finance ministry’s heightened scrutiny aims to ensure that businesses maintain proper bookkeeping, protect the integrity of cash‑register data, and comply with employment regulations, with repeated violations being referred to penalty and criminal offices.