Federal Ministry of Finance Plans to Abolish Paper Receipts

The Federal Ministry of Finance has presented a draft law that aims to abolish paper receipts. Instead, digital purchase receipts are to become the standard. This measure is intended to combat tax evasion, which is particularly prevalent with open cash registers. The new regulations are set to come into effect on January 1, 2028.

Companies with an annual turnover of over 100,000 euros will be required to use electronic cash systems. An exception applies to micro-enterprises that earn less than 12,000 euros in cash per year; these businesses may continue to use open cash registers. Discussions are also ongoing regarding exceptions for direct marketers in agriculture as well as for weekly and annual markets. The digital receipt will not replace the paper receipt in all areas.

Customers are not obligated to accept the electronic receipt but can receive it via email, QR code, or an app. This regulation aims to reduce the burden on businesses and buyers, as not every small amount needs to be documented with a receipt. The draft law is currently undergoing parliamentary procedures. Similar to the abolition of the cash mandate discussed in early September 2026, there are already plans for the implementation of the new regulation. It remains unclear who will bear the costs of transitioning to electronic cash systems.

Violating the new obligation to provide digital receipts constitutes an administrative offense. The use and distribution of software to manipulate receipts is also prohibited. These measures are intended to ensure that the new regulations are effectively implemented. The abolition of paper receipts also has environmental implications. In Germany, several billion receipts are printed annually, amounting to several million kilograms of receipt paper.

A large portion of this paper cannot be recycled due to a special coating, which increases environmental pollution. The legal obligation to issue receipts was introduced in 2020, significantly increasing the number of printed receipts. Thus, the transition to digital receipts could not only enhance tax transparency but also have a positive impact on the environment. The discussion around the digital receipt obligation is part of a broader initiative to digitize retail in Germany. The federal government aims to increase efficiency and transparency in trade while simultaneously expanding the tax base.

The exact implementation of the new regulations will be further developed in the coming months. Affected companies must prepare for the upcoming changes to comply with legal requirements in a timely manner. The introduction of electronic cash systems could also alter competitive conditions in retail, as companies already using digital solutions may have an advantage over those still relying on traditional systems. The federal government plans to pass the new regulations in parliament by the end of 2026 to ensure a smooth implementation.