Overview
- The Bundesrat backed a resolution—driven by Lower Saxony and Hamburg—calling for at least one digital payment option for everyday transactions alongside cash.
- The federal coalition says it will keep cash but is preparing legislation to require a digital method, with the Finance Ministry developing an implementation timetable.
- Key design points remain under negotiation, including scope, rollout, exemptions and cost safeguards, with trade groups urging fee caps and the tax union proposing a 0.5% ceiling plus automatic cheapest-tariff offers.
- A push for an immediate registrierkassenpflicht failed in the Bundesrat, while the coalition foresees it from 2027 with a €100,000 annual turnover threshold.
- Backers cite enforcement gains and large losses from cash-heavy tax evasion—about €20 billion in direct taxes and nearly €70 billion overall—while a VAT cut on restaurant food to 7% from January 1, 2026 is slated as part of the package.