Germany steps up: New rules to boost electronic payments
The upcoming coalition of the CDU/CSU and SPD plans to introduce changes in the payment system aimed at increasing financial transparency. The proposals include obligating businesses to accept not only cash but also electronic payment methods, reports Deutsche Welle.
German finance politician Michael Schrodi from the SPD emphasizes the need to introduce true freedom of choice in payment transactions.
Changes in cash payment regulations are being prepared in Germany
According to "Welt am Sonntag," these proposals are included in the final document of the working group on budget, taxes, and finance. The plan calls for the gradual introduction of digital payment options alongside cash.
The changes aim to enforce tax regulations more effectively, particularly in industries such as gastronomy, where cash is heavily used.
Schrodi points out that the introduction of cash registers is essential to curb tax fraud and protect honest entrepreneurs.
Deutsche Welle reports that the German Tax Union supports these changes, indicating a potential increase in tax revenues.
Deutsche Welle writes that, according to estimates, Germany loses between 10 to 15 billion euros (approximately 11 to 16.5 billion dollars) annually in taxes due to tax evasion in sectors where cash payments are predominantly used.
The European Union is limiting cash payments
Last year, the European Union decided on new regulations regarding cash payments. As of 2027, the maximum cash transaction amount will be limited to 10,000 euros (approximately 11,000 dollars). Additionally, for payments exceeding 3,000 euros (approximately 3,300 dollars), identity verification will be required.
The changes will cover all currencies used in the Union; however, individual countries will be able to implement lower limits. The aim of the new regulations is to enhance financial transparency and combat money laundering and terrorism financing.
