German Government Plans to Abolish Paper Receipts

The Federal Ministry of Finance has presented a draft law that proposes the abolition of paper receipts. Instead, digital purchase vouchers are to become the standard. The main reason for this measure is to combat tax evasion, which is facilitated by the use of open cash registers. These registers are prone to abuse as they often do not maintain records or only keep handwritten notes. Companies with an annual turnover of over 100,000 euros will be required to use electronic cash register systems starting in 2028.

Micro-enterprises that earn less than 12,000 euros in cash annually will be exempt from this requirement. This regulation aims to ensure that smaller retailers are not unduly burdened. Currently, exceptions for direct marketers in agriculture as well as for weekly and annual markets are also being negotiated. The digital receipt will not replace the paper receipt in all areas, but in most cases. This is intended to reduce the burden on businesses and consumers, as not every small amount will need to be documented with a receipt.

Customers are not obligated to accept the electronic receipt. The transmission can occur through various channels, including email, QR code, or specialized apps. This flexibility is designed to accommodate users and increase acceptance of the new regulation. The draft law is currently undergoing parliamentary procedures and has not yet been finalized. Similar to the recently discussed abolition of cash mandates in stores, there are already plans for implementation.

The new regulation is set to come into effect on January 1, 2028. It remains unclear who will bear the costs of transitioning to electronic cash register systems. Retailers may either have to cover the costs of acquiring new cash register devices themselves, or there may be relief through government subsidies. Those who violate the new obligation and do not use an electronic recording system will commit an administrative offense.

Additionally, the use and distribution of manipulation software to "beautify" receipts is prohibited. These measures aim to ensure the integrity of electronic receipt systems and further complicate tax evasion. The abolition of paper receipts could also have positive environmental impacts, as several billion receipts are printed annually in Germany. The amount of printed receipt paper totals several million kilograms per year. A large portion of this paper cannot be disposed of and recycled through regular waste paper due to a special coating.

The transition to digital receipts could thus also contribute to waste reduction. The legal obligation to issue receipts was introduced in 2020, which has further increased the number of receipts. Therefore, the planned reform could bring not only tax-related but also ecological benefits. The discussion about digital transformation in retail will gain importance in the coming months.

The government expects that the transition to digital receipts will increase efficiency in retail while simultaneously enhancing tax transparency. According to estimates from the Federal Ministry of Finance, this measure could significantly reduce tax evasion. The exact number of receipts printed annually in Germany is in the billions. Thus, this reform could make a substantial contribution to modernizing German retail.