The German Federal Cabinet has approved a draft law submitted by the Federal Ministry of Finance (BMF) to phase out mandatory paper receipts and transition to digital receipts starting in 2028. The initiative aims to reduce thermal paper consumption, cut bureaucratic burdens on businesses, and bolster tax compliance transparency in retail.
Under the bill, digital receipts (issued via email or displayed as a QR code at checkout) will become the standard proof of purchase. Consumers retain the right to request an ordinary paper receipt at checkout.
- What happened: The German government agreed on a bill replacing mandatory paper receipts with electronic receipts starting in 2028.
- Rules for consumers: Accepting digital receipts remains voluntary; a paper receipt is provided upon individual customer request.
- Requirements for businesses: Beginning in 2028, businesses with annual revenue over €100,000 must implement electronic point-of-sale systems. An exemption applies to businesses with annual cash turnover under €12,000.
Reform Objectives and the Finance Ministry’s Position
The obligation to issue a receipt for every purchase (Bonpflicht) was enacted in Germany in 2020 to prevent tax evasion. The rule faced criticism from small retailers, particularly bakeries and kiosks, who cited bureaucratic compliance burdens and unnecessary paper waste.
Federal Finance Minister Lars Klingbeil stated that electronic cash registers will account for all transactions, deter tax evasion, and establish fair competition. He added that the transition will also reduce administrative overhead for citizens and businesses.
According to BMF estimates, approximately 115,000 manual open cash drawers (offene Ladenkassen) remain in operation in Germany, where revenue recording is done manually, complicating audits by the tax authorities (Finanzamt).
Technical Requirements and Planned Exemptions
The draft bill sets explicit parameters for electronic systems:
- Implementation threshold for digital registers: The draft bill foresees that starting in 2028, businesses with annual turnover exceeding €100,000 will be required to use electronic cash registers.
- Cash revenue exemption: The requirement does not apply to retailers whose annual cash revenue is under €12,000.
- Potential additional exemptions: Further exemptions may be designated by ministerial decree, such as honor boxes at self-pick agricultural fields (Selbsternte-Felder).
Digital industry association Bitkom noted that electronic receipts are easier to archive and retrieve. It estimated that the transition will require initial adjustments from many companies and that interoperability requires uniform technical standards.
Retail Trade Association Response
The German Retail Federation (Handelsverband Deutschland — HDE) responded cautiously to the cabinet’s decision. HDE Managing Director Stefan Genth recalled that coalition agreements originally envisioned the complete elimination of receipt obligations rather than replacing them with a new digital mandate.
Genth argued that substituting paper slips with mandatory digital receipts does not go far enough. He noted that for large purchases, receipt data may exceed QR code capacity, necessitating server storage and URL delivery. While such systems exist, implementing or expanding them could entail substantial costs for many retailers.