Lack of Fiscal regulation in Germany resulted in growing number of tax-related frauds, which, after years of hesitation, forced German government to take actions.
The first fundamental step forward ensuring the immutability of cash register data was the Act on Protection against Manipulation of Digital Records (Kassensicherungsverordnung) adopted back in 2016, enters into force on January 1st 2020. According to this law, it is absolutely mandatory that electronic record-keeping systems must be additionally equipped with a so-called “Technische Sicherheitseinrichtung” – TSE. In addition to that, all existing cash registers in operation must also be reported to the respective German tax authorities.
Technical security device – TSE is consisting of three components: a security module, a storage medium and a digital interface, with three main functions: it transfers, protects and stores cash register transactions.
The TSE must be certified, which is the responsibility of TSE manufacturers. Certification of the actual point of sale system or POS application is not necessary. The TSE certification is valid for five years. Respective certificates may be renewed after expiration.
Immediately after goods are sold or services provided the receipt must be issued to a customer, but the customer is not obliged to take the receipt. Receipts can be issued in paper form or be made available electronically via an app or mail.
Contribution by JB Fiscal Consulting
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