Subsidies for digital cash register systems: Bridging aid III.
Support for digitalisation for businesses
Applications for Bridging Assistance III must be submitted by 31 August 2021 via their tax advisor, or elected representative (see item: Where can Bridging Assistance III be applied for?).
Digital cash register systems as well as "acquisitions and expansion of electronic recording systems within the meaning of §146a of the German Fiscal Code (Abgabenordnung AO)" (FAQ 2.4, point 14) can be supported by the bridging aid III. Bridging aid III can be applied for in the event of a drop in turnover caused by the Corona restrictions for the period November 2020 to June 2021 and does not have to be repaid.
Who can apply for the bridging assistance?
Businesses, solo self-employed and freelancers are supported by the Bridging Aid III and can receive, among other things, a one-off grant of up to 20,000 euros in digital investments. The subsidy does not have to be repaid. Taxpayers can now get support for their new digital cash register with TSE.
Subsidy for digitalisation: electronic cash register systems with TSE are supported
The subsidy supports investments in digitalisation with up to 20,000 euros (one-time). This includes the acquisition costs of licence fees for IT programmes, IT hardware and licence fees. In the FAQ's of the Bridging Assistance III website of the federal government, you will find information on this under points 2.4 item 9 (business licence fees) and item 14:
"In addition, under the same conditions, investments in digitisation ([...] if they are necessary for the exercise of the business or self-employed activity) may be recognised as eligible for a one-off payment of up to 20,000 euros.
Also eligible are the acquisition and expansion of electronic recording systems within the meaning of § 146a of the German Tax Code (AO)."
Source FAQ on Bridging Assistance III
The necessity of the conversion is given by the changed legal framework conditions through §146a AO.
Where can bridging assistance III be applied for?
Tax advisors, auditors, sworn accountants, tax agents or lawyers can apply for the bridging assistance on behalf of taxpayers. Costs for these services are partially eligible under Bridging Assistance III. You will receive detailed information from your representative. The deadline for applications is 31 August 2021.
In brief: Information on Bridging Assistance III
Prerequisite: Sales decline caused by Corona restrictions (min. 30% compared to the respective reference month 2019) for the period from November 2020 to June 2021
Funding opportunities in the digital sector: Investments in digitalisation including IT licence fees, IT hardware, subscriptions and other fixed expenses (e.g. ongoing costs for external IT service providers).
Eligible parties: Companies with up to 750 million turnover/year, solo self-employed and freelancers.
Applicant: Application is made via third parties (e.g. tax advisors, lawyers, etc.) Detailed information adapted to your case can be obtained by taxpayers from your tax advisor or elected representative. You can find more information here. You are welcome to talk to us as a first step.
Disclaimer: fiskaly assumes no liability for the completeness or timeliness of this information. All information is provided without guarantee. This information does not constitute legal advice nor tax advice. Please contact your lawyer or tax advisor for binding clarification of relevant legal or tax issues.