Germany's CDU-SPD Coalition Confirms Mandatory Digital Payment Plan

The coalition agreement includes measures to combat tax fraud by requiring businesses to offer at least one digital payment option and adopt electronic cash registers.

The CDU-SPD coalition has finalized plans to mandate businesses to provide at least one digital payment option alongside cash, aiming to modernize payment systems and enhance traceability.
The proposal includes a general requirement for electronic cash registers, replacing open cash registers to improve tax compliance and reduce fraud in cash-heavy sectors like gastronomy.
Supporters, including the Deutsche Steuergewerkschaft, argue the measures could significantly boost tax revenue, addressing an estimated €70 billion annual loss from tax fraud.
Industry groups, such as Dehoga, criticize the initiative, citing financial burdens for small businesses due to equipment costs and transaction fees, particularly in hospitality and event-based retail.
The measures are set to be phased in gradually, with further steps tied to the evaluation of Germany's 2016 cash register regulations.