Germany to mandate digital payments and e-invoicing by 2027

Germany is preparing for significant regulatory shifts regarding digital payments and electronic invoicing. The Federal Ministry of Finance has proposed a mandate requiring businesses, including restaurants and service providers, to offer at least one digital payment method—such as Girocard, credit card, or smartphone payment—alongside cash starting in 2027. This reform aims to modernize transactions, though debates continue regarding transaction fee responsibilities.

In addition to payment methods, new laws target tax evasion and administrative efficiency. A second cash register law, approved by the federal cabinet, aims to introduce a mandatory electronic cash register requirement for businesses with annual revenues exceeding 100,000 euros by January 1, 2028. This measure is designed to replace manual or open cash registers with systems featuring certified technical security equipment (TSE) to ensure tamper-proof transaction recording.

Furthermore, a mandatory structured e-invoicing requirement for B2B transactions will take effect on January 1, 2027, for companies with an annual turnover exceeding 800,000 euros. This obligation will expand to all other B2B companies by January 1, 2028. These changes represent a major shift in German accounting and retail operations, moving away from paper-based workflows toward integrated digital processes.