With the introduction of § 146b AO, the proper keeping of cash register records will in future be reviewed by way of the so-called "cash register inspection" (Kassennachschau). This may be carried out at any time and without prior notice on the business premises of the entrepreneur.
The purpose of this inspection is to determine whether the cash register records match the actual cash on hand (the so-called "Kassensturzfähigkeit", i.e. the ability to reconcile cash holdings at any given moment).
The BMF has already published the ministerial draft for an Act on the "Protection against Manipulation of Digital Basic Records" and the "Ordinance on the Implementation of the Act on the Protection against Manipulation of Digital Basic Records".
One of the main areas of focus will be cash register records.
If the cash register inspection reveals irregularities or anomalies, a tax audit may be ordered against the entrepreneur immediately afterwards.
The new rules are scheduled to apply to fiscal years beginning after 31 December 2018. Action is therefore required now in order to be well prepared for unannounced visits from the tax office: please get in touch with us.
Frequently asked questions
Frequently asked questions
What is a cash register inspection (Kassennachschau) under Section 146b AO?
The Kassennachschau is an audit instrument of the tax authorities used to verify the proper keeping of cash records. It may be carried out at any time and without prior notice on the business premises of the entrepreneur. In particular, it examines whether the cash records match the actual cash on hand (cash-count capability).
What consequences can a cash register inspection have if irregularities are found?
If the auditor identifies discrepancies or irregularities during the cash register inspection, the procedure can transition directly into a full tax audit without prior notice. In addition, violations of the applicable rules may result in fines of up to 25,000 euros.
When do the new regulations on protection against cash register manipulation take effect?
The changes introduced by the Act to Protect Against Manipulation of Digital Basic Records are to be applied for the first time to financial years beginning after 31 December 2018. Businesses handling cash transactions should therefore adapt their cash management procedures in good time.
What does cash reconciliation capability (Kassensturzfähigkeit) mean in practice?
Cash reconciliation capability means that the cash balance shown in the books must match the actual cash physically present in the till at any given time. The business owner must therefore be able to perform a target-actual comparison of the cash register at any moment without any discrepancies arising.
How should business owners prepare for a cash register inspection (Kassennachschau)?
Business owners should keep their cash register records complete, timely, and tamper-proof, and retain all receipts and individual transaction records. It is advisable to review the cash register systems used for compliance with statutory requirements, as auditors may arrive without prior notice.