<small>Client Information: </small><br>Cash Register Management 2020 – What to Consider

Cash Register System Requirements

The current requirements for cash register systems have been in place since 2017. They include:

• Every business transaction must be recorded individually
• Suppression of the recording of business transactions is not permitted
• All recorded data must be retrievable and readable at any time
• All changes must be documented (including changes to master and programming data)
• Receipts must be retained completely and in an unalterable form
• Cash register records must be archived for ten years in accordance with the statutory retention periods

As of 1 January 2020, the following additional requirements have been added:

• Electronic cash register systems must be equipped with a certified TSE (technical security device). Certification is issued by the Bundesamt für Sicherheit in der Informationstechnik (BSI, the Federal Office for Information Security)
• For every business transaction, it must be possible to issue a receipt to the customer
• The cash register systems used in the business must be reported to the tax office.

Certified Technical Security Device (TSE)

The legislator has not prescribed a specific system for the TSE. However, certification by the BSI is mandatory. There are two options for this certification:

1. A MicroSD card is used together with an adapter
2. A cloud-based web service solution is used

Please note! To date, certifications have only been issued for the first option. As of now, there is NO certified cloud-based solution!

For electronic cash register systems, a three-part TSE is essential:

1. Security module: This ensures that all entries are logged and stored in an unalterable form
2. Storage medium: Individual records must be retained for the duration of the statutory retention period.
3. Digital interface: This interface (DSFinV-K) ensures data transmission for audit purposes

Cash Register Systems

Depending on the design of your cash register system, different deadlines apply for its continued use:

• Cash register system cannot be upgraded due to its design

  • If such a cash register system was purchased after 25 November 2010 but before 1 January 2020 and cannot be upgraded, it may continue to be used until 31 December 2022.

  • After that, a new system must be acquired. However, this exception does not apply to PC-based cash registers and app-based systems.

  • Older cash register systems (purchased before 25 November 2010) had to be replaced with a TSE-compatible system by 1 January 2020.

Note: Have the cash register manufacturer confirm that your system cannot be upgraded and include this confirmation in your process documentation. Please also note that legacy systems must be retained for the duration of the statutory retention period and may not be disposed of beforehand!

• Cash register system can be retrofitted with a TSE
  • Under the law, these cash register systems should have been retrofitted by 1 January 2020 / according to the tax authorities by 30 September 2020.

However, the non-objection rule applies under the following conditions, extending the retrofit deadline until 31 March 2021:

• The TSE was bindingly ordered from the cash register manufacturer (dealer, etc.) by 30 September 2020. The binding order must be verifiable. Installation must also have been bindingly commissioned.
• The cash register system requires a cloud-based TSE. These are demonstrably not yet available.

If either condition applies, the deadline is extended to 31 March 2021. The extension does not need to be applied for. However, orders as described above must be placed by 30 September 2020. Otherwise, the non-objection rule expires on 30 September 2020!

Deadline Extension in Cases of Hardship

In individual cases, an extended deadline may be applied for. However, the reasons for the failure to upgrade must be substantiated. The costs incurred by the upgrade alone do not constitute grounds for such an extension!

Reporting Procedure for Cash Register Systems

Since 2020, newly acquired as well as decommissioned cash register systems must be reported to the tax authorities (cash register systems covered by the extension until 31 December 2022 are excluded). This report must be submitted using the officially prescribed form and must include the following information:

• Name of the taxpayer
• Place of business of the cash register
• Identifier (tax number or similar)
• Type of the certified TSE and serial number
• Certification ID issued by the BSI
• Number, type and serial number of the system in use
• Date of acquisition
• Date of commissioning or decommissioning

According to the BMF, however, reporting cash register systems may be deferred until such notifications can be transmitted electronically. When this will be the case is not yet foreseeable. The information required for the report should nevertheless be kept on hand so that notification can be made once the technical conditions are in place.

Mandatory Issuance of Receipts

As of 1 January 2020, the obligation to issue a cash receipt to every customer has taken effect – regardless of whether the customer actually takes the receipt. With the customer's consent, this may also be done electronically (e.g. PDF, JPG, etc.).

Electronic issuance of receipts has since been simplified by the BMF. In principle, an electronic receipt is considered provided once the customer is given the opportunity to receive it. Now, however, the customer's implied consent is already sufficient. This means that, for example, a sign at the cash register may indicate that receipts are generally issued electronically. A paper receipt can be printed on request. As long as the customer is able to download this e-receipt (e.g. via QR code), this is permissible – regardless of whether the customer actually downloads the receipt or not.

Exceptions from the mandatory issuance of receipts are only very rarely granted by the legislator. Decisions in favour of applicants are rare!

Cash Register Inspection (Kassennachschau)

The tax office is entitled to inspect your cash register system at any time and without prior notice during business hours and to demand a cash count. You are required to grant the auditor access to all data relating to your cash register system. If irregularities are detected, the inspection may proceed directly to a full external audit.

In the event of a cash register inspection, the following documents should always be available in their current version:

• Process documentation, including

  • General description

  • User documentation

  • Technical system documentation

  • Operating documentation

• Electronic cash register records

• Manuals, operating and programming instructions for the cash register system

• Programming and setup logs for the cash register

If you have any questions about implementation, the preparation of process documentation, or any other matters, please feel free to contact us in person. We will be happy to assist you.