The German government plans to strengthen enforcement of the receipt issuance obligation for retailers by amending § 379 of the Fiscal Code to classify failure to issue receipts as an administrative offense. This amendment will allow tax authorities to impose fines ranging from €5,000 to €25,000 to ensure compliance and enhance efforts to combat tax evasion. The move emphasizes using technical security devices (TSEs) in cash registers to secure accurate transaction records and deter non-compliance.
In Germany, there are harsher penalties for failing to issue receipts.
Public
Germany
Author: Stefan Ditrih
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Fiscal subject related
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Content accuracy validation date:
21.10.2024
Content accuracy validation time:
08:05h
The German government is preparing to strengthen enforcement of the receipt issuing obligation ("Belegausgabepflicht") for retailers, introduced in 2020 under § 146a of the German Fiscal Code (Abgabenordnung, AO). The requirement mandates that businesses issue receipts, whether electronically or on paper, for every transaction involving a cash register. This regulation aims to increase transparency and combat tax evasion by ensuring that all sales are properly recorded. However, in practice, compliance has been inconsistent due to the lack of effective sanctions for non-compliance.
To address this gap, a key change is being proposed to § 379 AO of the Fiscal Code, which covers administrative tax offenses. The amendment aims to introduce clearer penalties for businesses that fail to meet the receipt issuance obligation. Under the current framework, the ability to enforce sanctions for non-compliance has been limited, meaning many businesses have neglected the requirement without facing significant consequences.
The proposed expansion of § 379 AO would formally classify the failure to issue receipts as an administrative offense. This will empower tax authorities to levy fines against non-compliant businesses, significantly increasing the pressure on retailers to comply with the regulations. The receipt issuance requirement is a key part of Germany's efforts to secure tax revenue by ensuring accurate transaction records through the use of technical security devices (TSEs) integrated into cash register systems.
Under the revised § 379 AO, fines for administrative offenses, including the failure to issue receipts, are expected to range from €5,000 to €25.00*, depending on the severity of the violation. The introduction of these fines is designed to act as a deterrent, encouraging retailers to adopt compliant systems and processes. Repeat offenders may face higher penalties, and the risk of audits by tax authorities will likely increase as the government steps up its enforcement efforts.
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