Germany proposes mandatory electronic cash register system

The German Federal Ministry of Finance is planning a new legal requirement for a mandatory electronic cash register system. Under the current draft, entrepreneurs and freelancers with an annual total turnover exceeding 100,000 euros would be required to use such a system starting January 1, 2028. The stated goal is to prevent tax evasion and make it harder to manipulate cash and card payments.

The AfW Bundesverband Finanzdienstleistung e. V. has criticized the proposal, arguing that the regulation is impractical for certain sectors. The association points out that the obligation is tied to total turnover, which could force businesses that do not engage in traditional cash transactions—such as those receiving payments exclusively via bank transfer or direct debit—to maintain expensive electronic systems that they do not actually need. According to the AfW, the current draft lacks a distinction between cash-intensive businesses and service providers whose revenue is processed through traceable banking and commission systems.