TSE Requirement 2026: What Hospitality Businesses Need to Know About Their POS System
Note: this article covers German tax and cash-register law (TSE, DSFinV-K, GoBD), which applies to hospitality businesses operating in Germany.
No general requirement to use a till, but clear TSE rules
One misconception persists: there is currently no general requirement in Germany to use an electronic point-of-sale system at all. Businesses running an open cash drawer may continue to do so. But as soon as you choose to use an electronic POS system, clear statutory requirements apply — and they get more specific in 2026.
The TSE requirement has long been everyday reality
Since 1 January 2023, the technical security element (TSE) has been mandatory for all electronic POS systems in hospitality. It records every till transaction in a tamper-proof way and is now a standard part of virtually every system on the market. The TSE requirement itself isn't new — what's new is how consistently it's now being checked during tax audits.
New as of 1 January 2026: clean separation of food and drink
Since the start of 2026, the VAT logic in the till must be able to cleanly separate food and drink — a requirement that trips up many older POS systems or loosely configured product groups. If this separation isn't done correctly, a cash register inspection can raise questions and, in the worst case, lead to back-tax payments. A good reason to fundamentally review your product management in the till, rather than letting it run "as always".
What else is mandatory
- DSFinV-K export: the till must be able to export data in the standardised format for the tax authorities' digital interface — exactly what's requested during a tax audit.
- Notification to the tax office: electronic recording systems that are acquired or decommissioned must be reported to the relevant tax office.
- Receipt requirement: a receipt must be generated for every transaction — the guest doesn't have to take it, but it must be issued.
What's under discussion for 2027
A general requirement to use an electronic till for businesses with annual turnover above €100,000 is being discussed for 1 January 2027. No concrete draft law exists yet — but hospitality businesses in that turnover range should keep the topic on their radar rather than reacting at the last minute.
What to check right now
- Is your TSE still within its certification validity?
- Does your till cleanly separate food and drink in the VAT logic?
- Can you deliver a DSFinV-K export on request without panicking?
- Are all currently used tills correctly registered with the tax office?
Conclusion
The TSE requirement is established, the food/drink VAT separation is new since 2026, and a possible general till requirement from 2027 is already casting its shadow ahead. Reviewing your POS system thoroughly now — rather than at the next tax audit — saves unnecessary stress.
Not sure whether your current system is legally sound? More on choosing the right system in our POS system comparison guide, or get independent advice directly.
