Overview
- The German coalition government is finalizing plans to mandate that all businesses provide at least one digital payment option alongside cash.
- The initiative aims to reduce tax evasion in cash-intensive sectors, which costs Germany an estimated €50–70 billion annually.
- To address concerns from small businesses about implementation costs, the government is considering reducing VAT in the gastronomy sector to 7%.
- Industry groups like the German Hotel and Restaurant Association warn of financial burdens on businesses, citing costs for card terminals and transaction fees.
- The plan aligns with global trends, inspired by Greece's success in reducing tax fraud through mandatory card terminals, which led to an 82% drop in cash circulation.