As of January 1, 2025, businesses in Germany are required to report their electronic point-of-sale (POS) systems to the tax office. The rule affects several operators, from retail to restaurants. Many must take action now to comply with the regulation.

In this article, you’ll learn what electronic POS systems are, what advantages they offer, and how to set them up. We’ll also explain what you need to know about the legal reporting requirement.

What’s in this article?

• What are electronic POS systems?
  
• Are electronic POS systems mandatory in Germany?
  
• Why choose electronic POS systems?
  
• How to set up an electronic POS system
  
• What regulations for electronic POS systems apply in Germany as of 2025?
  

What are electronic POS systems?

Businesses that sell products or services in a physical store can use various checkout setups, such as an open till, a classic cash register, or an electronic POS system.

The development of cash register systems

The open till is the simplest form of cash register management. Hard currency has no technical functions and only operates manually. The drawer or box stores nothing digitally, so documentation must be kept on paper—for example, by recording daily receipts by hand in a cash book.

Cash registers, on the other hand, can store sales electronically. They log receipts, withdrawals, or cancellations easily. In addition, traditional registers lack technical functions, usually working independently and are not connected to the business’s accounting or inventory management tool.

Electronic POS systems go much further: they combine register functions with digital infrastructure. They’re able to automatically record all incoming and outgoing cash payments, create daily closings, and transfer them directly to the business’s accounting software. They can also perform functions such as adjusting inventory levels, handling orders, or customer management. These features make an electronic POS system a multifunctional IT solution tying the register to bookkeeping and stock control.

Areas of application for electronic POS systems

In Germany, electronic POS systems are used in industries including retail and catering. They are particularly suitable for sectors where customers prefer to pay in cash. Businesses benefit from secure billing, while buyers appreciate transparent, reliable payment processing. Although digital options are becoming increasingly popular, many still prefer to pay in hard currency. According to the Deutsche Bundesbank, half of all transactions in 2023 were made with banknotes and coins.

Electronic POS systems are also suitable for cashless payments. In combination with solutions such as Stripe Terminal, payments can also be processed by credit card or girocard.

Are electronic POS systems mandatory in Germany?

There is generally no legal obligation to adopt electronic POS systems in Germany. Yet various rules effectively make it a necessity for many businesses.

An open till is still permissible. Simple cash boxes appear at weekly markets or in the craft sector across Germany. However, anyone trading here must follow the principles for the proper management and storage of books, records, and documents in electronic form (GoBD). Owners therefore need to maintain procedural documentation detailing their cash handling. Every sale has to be logged completely, accurately, and promptly to remain traceable and unalterable. Businesses with open tills must carefully document each sale; totals noted only at the end of the day will not suffice. For those with a high volume of cash transactions, manual register management is hardly feasible.

Anyone using an electronic or PC-based register is also subject to the provisions of Section 146a of the German Fiscal Code (AO), which has been in place since January 1, 2020. It requires a certified technical security system that records every register entry in a tamperproof, complete, and continuous manner. The setup consists of a security module, storage medium, and a uniform digital interface that allows for data export. This regulation is supplemented by the Cash Register Security Ordinance (KassenSichV), which sets out further necessary standards for electronic POS gear.

Why choose electronic POS systems?

These setups offer several advantages to both customers and businesses. Here is an overview of the key benefits:

Advantages for customers

Various payment methods

Beyond cash, electronic POS systems generally support cashless processes. In this sense, customers in Germany can also pay at the POS with credit cards, girocards, or via a smartphone app.

Faster transactions

Electronic POS tech speeds up the purchases compared to open store checkouts. They scan goods, automatically record the amounts in the register, and calculate change within seconds, helping staff finish sales quickly and cut queues.

Transparency

Shoppers receive detailed, easy-to-read receipts, which can also be made available digitally upon request. This makes complaints and exchanges easier and straightforward for customers to keep track of their spending.

Advantages for businesses

Efficient processes and customer satisfaction

Electronic POS systems speed up checkout and reduce their susceptibility to errors. Shortened wait times can increase customer satisfaction.

Automated accounting

Many POS units connect directly to accounting or inventory management software, automatically transferring sales info, daily summaries, and stock movements.

Transparency and planning

Because every sale is logged digitally, figures are always available for analysis—helping with day-to-day oversight and long-term planning.

Legal compliance

Electronic POS systems help businesses meet legal requirements. Tamperproof records help prevent problems during audits, among other things.

Additional features

Modern POS units do so much more than collect money. Additional functions such as digital warehouse management, integrated client tools, or table and appointment scheduling allow operational processes to be centrally controlled and refined.

How to set up an electronic POS system

Launching an electronic POS setup takes careful planning. Business owners need to consider the following steps:

Determine the requirements

The first step is to define the specific requirements that the electronic POS system must meet. Here are a few key questions to ask:

• What payment methods would you like to offer your customers?
  
• How many POS points do you need?
  
• Are mobile card readers required?
  
• Should the POS system be linked to the accounting or merchandise management of the company?
  

Select the system type

In this step, you have two options to choose from:

• PC checkout: Install the POS program on a computer and connect hardware components to it. One advantage here is that you can choose different providers for the software and the hardware, as long as they’re compatible with one another.
  
• Closed checkout: Here, the provider closely coordinates the hardware and software. The setup offers excellent system stability but restricts the interchangeability of individual parts.
  

Assemble the hardware

Both types can connect to extra devices. The selection of these depends, among other things, on your industry, as well as the desired features. Typical components of an electronic POS system include:

• Scanner for items or QR codes
  
• Scale
  
• Cash register display or touchscreen
  
• Cash register drawer
  
• Receipt printer
  

If you want to accept cards or digital wallets, add a reader. Stripe Terminal offers precertified options such as the S700 or mobile devices such as the BBPOS WisePad 3. It is, however, also possible to offer cashless payment without an additional device. You can also enable Tap to Pay on iPhone or Android without extra hardware and integrate them into your accounting.

Configure your software

The hardware installation is followed by setting up the POS software. This includes, among other things, the storage of item data and prices as well as the setting of the correct tax rates. You also need to activate the interfaces to bookkeeping and inventory to ensure automated data transmission.

Test, train, and start

Before launch, test the POS extensively. Verify every checkout option, check receipt printing, and make sure daily cash entries are accurate. At the same time, it’s a good idea to train staff on how to use the system to help your team build confidence before the start of business operations.

What regulations for electronic POS systems apply in Germany as of 2025?

The obligation to report electronic POS systems to the tax authorities has been in place for German businesses since 2020. Nevertheless, enforcement has been on hold for several years due to technical difficulties faced by the government. In June 2024, the Federal Ministry of Finance finally announced plans to roll out a corresponding procedure across all federal states.

Since January 1, 2025, German businesses have had to report their European Union taximeters, distance meters, and electronic POS systems. Anyone who “records business transactions or other processes that are subject to recording using an electronic recording system” falls under Section 146a (1) of the AO. Operators using an open till are exempt. The goal of this reporting requirement is to create a comprehensive register that can serve as a control instrument for the tax authorities; it also aims to curb manipulation and tax evasion. In the event of missing or late reporting, businesses risk sanctions, such as levy estimates or fines.

Deadlines depend on the time of purchase or decommissioning:

• Electronic POS systems purchased by a business before July 1, 2025, must be registered by July 31, 2025.
  
• Systems acquired, rented, or leased after July 1, 2025, must be reported within one month of purchase.
  
• Systems that are decommissioned after July 1, 2025, must also be reported within one month.
  

What is the reporting process?

Businesses can report their cash register systems via the ELSTER tax portal using the form “Notification procedure according to Section 146a, Paragraph 4 of the AO.” Alternatively, upload an XML file or transfer information from an appropriate application that has an ERiC interface. Tax consultants and providers of special POS software offer support for technical implementation and data transmission.

All electronic POS devices used at a permanent establishment need to be listed in one notice. Operators with multiple locations must file a separate report per site. Per Section 146a, Paragraph 4 of the AO, the following information is required:

• Taxpayer’s name and tax number
  
• Type of certified technical security device
  
• Type of and number of electronic recording systems
  
• Serial number and date of purchase of the electronic recording system
  
• Decommissioning date of the electronic recording system (if applicable)