The Federal Ministry of Finance informs in the letter dated August 30, 2023, how the costs arising from the implementation of the certified technical security system (TSS) and the standardized digital interface (DSFinV-TW) are to be treated for tax purposes.

The [Cash Register Security Regulation also includes EU taxi meters and odometers](/en/articles/tss-in-taximeter-and-odometer). These electronic recording systems and the digital records to be maintained with them must be protected by a TSS, and the data must be provided to the tax authorities via DSFinV-TW exports in the event of a [cash inspection](/en/articles/cash-inspection-kassennachschau-in-germany-what-merchants-should-know) or external audit.

**Here are the details on the tax treatment of the implementation costs:**

## TSS

The regulations for the TSS as an economic asset and the depreciation correspond to the regulations of the BMF letter dated August 21, 2020. This means that for cloud solutions, the ongoing fees are "usually immediately deductible as business expenses". More [information on retrofitting cash registers can be found in our blog](/en/articles/modification-of-cash-registers).

## Unified digital interface:

The standardized digital interface includes the interface for connecting the TSS to the electronic recording system and the digital interface of the financial administration for EU taxi meters and odometers (DSFinV-TW). The costs for implementing this interface are treated as ancillary acquisition costs of the "TSS" economic asset.

## Simplification rule:

Just as in the original regulation for cash registers, there is a simplification rule: For simplification purposes, the responsible authorities accept that the costs incurred by the initial retrofitting of existing EU taxi meters or odometers with a TSS and the expenses for the initial implementation of the standardized digital interface in an already established electronic recording system can be booked directly and in full as business expenses ([see letter dated 30.08.2023](https://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Weitere_Steuerthemen/Abgabenordnung/2023-08-30-kassensichv-stl.-Behandlung-Kosten-Implementierung-TSE-EU-Taxameter-Wegstreckenzaehler.pdf?__blob=publicationFile&v=2)).

With this adjustment, EU taxi meters and odometers are now also included in the tax regulations concerning the implementation of a TSS. It is essential for companies that have implemented a TSS to be aware of these changes and act accordingly.

The letter is available for download on the [Federal Ministry of Finance website](https://www.bundesfinanzministerium.de/Web/DE/Themen/Steuern/Steuerverwaltungu-Steuerrecht/Betriebspruefung/BMF_Schreiben_Allgemeines/bmf_schreiben_allgemeines.html).

The Federal Ministry of Finance released a statement on August 30, 2023. In this statement, it clarifies how to handle tax implications for costs arising from the integration of TSS and DSFinV-TW-Exports into taxi meters and odometers.

[The introduction of the technical security device (TSS)](/en/kassensichv-advantages-of-cloud-tss) for taximeters and odometers is approaching and brings some changes for taxi operators. From January 1, 2024, taximeters and odometers must have a TSS to protect digital basic records from unlogged changes and deletions. Here, we would like to give you a brief overview of what you should know about the introduction of TSS in taxis.

## New requirements in the application decree

The Federal Government has proposed in the [Application Decree to the Fiscal Code on § 146a AEAO](/en/articles/webinar-new-version-aeao-dsfinvk-reporting-obligation-in-2023) due to the inclusion of EU taximeters and distance meters within the scope of the Cash Security Ordinance (KassenSichV), how a taximeter equipped with TSS should look like.

The application decree has been fundamentally redesigned and is divided into four parts. Parts III and IV have been added for requirements concerning EU taximeters and odometers.

## Special requirements for taximeters and odometers

Since taximeters and odometers are only partially comparable in their technical functionality with electronic cash register systems, additional requirements for documenting business transactions and issuing receipts have been included in the application decree. These special requirements are intended to ensure that data is properly recorded and protected.

## Reactions from leading taxi associations to the introduction of TSS

Both the Bundesverband Taxi und Mietwagen e.V. (BVTM) and the Taxi- und Mietwagenverband Deutschland (TMV) have issued statements to the Federal Ministry of Finance expressing their approval of the new introduction of TSS. The associations welcome the measures and recognize the benefits of secure and tamper-proof recording of business transactions.

## Preparation for new requirements and transparency in the taxi industry

The introduction of TSS for taximeters and odometers brings changes for taxi operators. It is important to prepare for the new requirements. TSS serves to protect digital records and contributes to transparency and protection against manipulation in business transactions in the taxi industry.

fiskaly is working intensively on a solution to support taxi operators in implementing TSS. [For further information and individual consultation, feel free to contact our Sales Team.](/en/contact)

Taximeters and odometers must be equipped with a Technical Security System (TSS) from January 1, 2024. Here you will find further information on what you need to know about the introduction of TSS in taxis.

Germany starts Technical Security System in taximeters and odometers as stated in AEAO from 01.01.2024. fiskaly informs about what you need to pay attention to.

Introducing TSS for taximeters - BMF issues AEAO on § 146a

Introduction of TSS for Taximeters

The cash inspection (Kassen-Nachschau) has been a central element of financial control in Germany since the beginning of 2018. It ensures the proper cash management and accounting of companies.

In this blog article, we take a closer look at the cash inspection and provide an overview of what you should look out for to be prepared for it.

## What is the cash inspection?

The cash inspection is an unannounced inspection of companies' cash records and systems by the tax authorities. It aims to prevent tax evasion and manipulation by ensuring that companies correctly record and pay taxes on their revenue. If discrepancies are discovered during the cash inspection, additional tax reviews, such as a comprehensive tax audit, may be conducted.

## What is the legal basis for the cash inspection?

For merchants to avoid possible sanctions, they must be informed about and comply with the legal obligations. According to Section 146b of the German Fiscal Law (Abgabenordnung, AO), the tax authorities have the right to conduct unannounced cash inspections during business hours. They may enter business premises, check documents and read data from cash register systems, but they may not take or open anything.

The contact person is the taxpayer or business owner, but the cash inspection can also take place in the presence of an employee with cash-handling responsibilities. In order to make the process more transparent and to be available at the relevant time, the Chambers of Crafts are calling for the mandatory announcement of a planned cash inspection and more precise guidelines.

## What happens during a cash inspection?

A cash inspection can take place without prior notice at any time during business hours. The auditors of the tax office can either appear incognito as a customer and make a hidden test purchase or carry out an obvious audit. In the case of test purchases in publicly accessible business premises, auditors do not have to identify themselves. Still, they must do so if access to further documents is required.

### **The following factors are examined:**

* #### **Is an electronic and tamper-proof cash register system in place?**

  The tax authorities check whether a cash register system is used that enables the keeping of electronic records. Particular attention is paid to whether the system meets the legal requirements and whether the data is protected against subsequent manipulation. [The interface for exporting data is regulated in the Digital Interface of the Tax Administration for Cash Register Systems (DSFinV-K).](/en/dsfinv-k)
* #### **Are cash records properly maintained?**

  [This includes, among other things, the continuous numbering of receipts](/en/articles/qr-code-replaces-tss-signature), the recording of the date and time for each transaction, the accurate recording of income and expenses, and the indication of the payment method.
* #### **Are cash records kept correctly?**

  Checks are carried out to ensure that the legal requirements for retaining cash register records are complied with. The retention period for companies and self-employed persons is generally ten years.
* #### **Do the cash balance and records match?**

  It is checked whether the cash on hand corresponds to the recorded income and expenses and whether the cash management is documented without gaps.

In the case of a cash inspection, the checks are usually carried out by inspecting the cash register records, reading out the electronic data, and questioning the business owner or employees. The aim is to ensure that cash management is correct and transparent in order to prevent potential manipulation and tax evasion.

## How to be prepared for the cash inspection

If the main contact person (such as management) is not always available, it is important to inform employees who regularly handle the cash register about a possible inspection and its requirements so that they can communicate with the auditors.

The cash inspection pays particular attention to the cash register systems used. These must comply with legal requirements and be tamper-proof. After the expiration of transitional periods at the beginning of 2023, [the German Cash Register Security Ordinance (Kassensicherungsverordnung or KassenSichV)](/en/articles/kassensichv-in-2023-what-will-change) states that [all electronic cash register systems must be equipped with a certified technical security system (TSS)](/en/kassensichv-tss-from-fiskaly). It is particularly [important that the used TSS is certified by the BSI (Federal Office for Information Security)](/en/articles/bsi-certification-of-tss) and that regular updates are carried out.

The cash inspection also checks for compliance with record-keeping requirements. Retailers must record and store their receipts without gaps. If an electronic cash register system is already in place, the audit is completed within a very short time, as all relevant data is automatically recorded and can be retrieved in a tamper-proof manner at any time. [The cloud-based and KassenSichV-compliant TSS from fiskaly can be easily integrated into your POS system.](/en/kassensichv-tss-from-fiskaly)

Due to [the receipt issue obligation](/en/articles/receipt-issuance-obligation-in-germany-background-effects-and-alternatives), the cash register inspection in the form of a test purchase with a visual inspection can also be carried out quickly, [as relevant secured TSS data is visible directly on the receipt via a QR code.](/en/articles/qr-code-replaces-tss-signature) If the QR code is not integrated on the receipt, access to TAR files with extended TSS data is required via the TSS in order to successfully complete the cash inspection.

## Summarized

To be prepared for a cash inspection, merchants should take several important measures. These include careful documentation of business transactions, regular training of employees in the use of the POS system, and compliance with the legal requirements for storage periods.

What is the cash inspection (Kassen-Nachschau) in Germany, how does it work, and what do companies need to consider for a successful audit? We provide an overview of everything you need to know on this topic.

What is the cash inspection (Kassen-Nachschau) and what is important for a successful audit in consideration of the KassenSichV? fiskaly gives an overview.

The cash inspection in Germany: What merchants should know

In the letter dated 21 August 2020, the Federal Ministry of Finance provides information on how the costs arising from the implementation of the certified technical security systems (TSS) are to be treated for tax purposes.

The following applies in the tax treatment of the costs of implementing TSS and the uniform digital interface:

## Cloud TSS
Ongoing charges incurred for cloud TSS are "regularly deductible immediately as business expenses"

## Hardware TSS
If a TSS consists of a USB stick, a memory card or similar, it is an independent asset that cannot be used independently. The acquisition costs must therefore be capitalised and depreciated over the normal useful life of three years.

If the TSS is installed as hardware directly in a cash register, it is not an independent asset. The expenses are therefore subsequent acquisition costs of the asset and are to be depreciated over its remaining useful life.

## Implementation costs
The expenses for the implementation of the TSS are incidental acquisition costs of the asset TSS.

## Simplification rule
In addition, there is a simplification rule, this states: 
"For simplification reasons, it is not objected if the costs for the subsequent initial equipment of existing cash registers or cash register systems with a TSS and the costs for the initial implementation of the uniform digital interface of an existing electronic recording system are immediately deducted in full as business expenses."

The letter of the BMF is available on the [website of the Federal Ministry of Finance](https://www.bundesfinanzministerium.de).

In its notice of 21 August 2020, the Federal Ministry of Finance provides information on how the costs arising from the first-time implementation of a technical security system (TSS) are to be treated for tax purposes.

In its notice of 21.08.2020, Federal Ministry of Finance informs how  to treat costs arising from the first-time implementation of TSS for tax purposes.

Modification of cash registers: What to consider when it comes to tax

Tax aspects of TSS and DSFinV-TW modification for EU taxi meters and odometers. fiskaly explains the current regulations from the Federal Ministry of Finance.