Cash register disruptions and TSS failures: What restaurateurs should know

For restaurateurs, a functioning cash register with an intact technical security system (TSS) is essential. This applies not only to business operations, but also to compliance with legal requirements vis-à-vis the tax authorities.

In this article, you will learn what measures you need to take to minimise tax and legal risks.

The importance of complete cash register records

The completeness of the individual cash register data is crucial. Missing data can be classified as a serious deficiency by the tax authorities and lead to an additional estimate – a risk that must be avoided at all costs.

Tip: Check and document your individual cash register data and any error messages daily.

Financial authorities focus on TSS failures

The review of TSS failures is increasingly becoming the focus of attention for the tax authorities. Transparent and complete documentation of TSE data is therefore more important than ever and facilitates correct assessment by the tax authorities.

What to do in the event of a cash register failure?

In the event of a cash register failure, the Federal Ministry of Finance provides certain guidelines, which we have summarised below. If you adhere to them, you have nothing to fear in the next tax audit:

Documentation of downtime: The downtime of the electronic recording system (e.g. due to a power failure or technical defect) must be documented. If possible, the failure should be documented with evidence (e.g. repair bill).

Paper records during the failure: Paper records may be kept during the failure. The same record-keeping requirements apply as for an open cash register. There are two options here:

• Option 1 – Itemised records: Itemised records can be kept in a cash book in which all cash business transactions are recorded in detail. Alternatively, an organised collection of all cash documents is permitted if a cash report is used to determine the daily cash receipts.
• Option 2 – no itemised records: The only way to dispense with the requirement for itemised records is for cash sales to a large number of unknown persons (reasons of reasonableness). In this case, cash receipts during the outage can be proven by means of a cash report. The basis for the cash report is the final cash balance at the end of the outage, from which the final cash balance at the beginning of the outage is deducted. Cash deposits made during the outage are to be deducted, while expenses and cash withdrawals are to be added.

What to do in the event of a TSS failure?

The Federal Ministry of Finance has also provided certain guidelines for the event of a TSS failure, which we summarise here:

• Obtain manufacturer confirmations: In the event of faults, it is recommended that you request statements from the POS system manufacturer. Obtain confirmation that all sales have been recorded in the daily closing operations in an audit-proof manner despite the fault.
• Documentation of the failure: In the event of a TSS failure, both the downtime and the reason for the failure must be documented. This documentation can also be done automatically by the electronic recording system.
• Document labelling in the event of a failure: If the electronic recording system continues to operate without the TSS, the failure must be visible on the document, e.g. by the absence of a transaction number or another unique identifier.
• Continued operation in the event of a TSS failure: If only the TSS fails, the system may continue to be operated until the failure is rectified. The obligation to issue receipts remains in place, even if not all the required values are provided by the TSS. The date and time must continue to be provided by the system.
• Immediate rectification of the TSS failure: The entrepreneur must rectify the cause of the TSS failure as quickly as possible and ensure that the legal requirements (Section 146a AO) are met again.

Measures to minimise the risk of a failure

To avoid gaps in recording when tills fail, it is crucial that you regularly back up your individual till data and TSS data. This ensures that your accounting remains accurate and that you are well prepared for any audits. In addition, technical faults or errors should be continuously documented and analysed so that you can respond quickly and appropriately. In most cases, the POS system manufacturer takes on these tasks, which is why it is important to clearly define these responsibilities in advance. The corresponding processes and procedures should also be included in your procedural documentation to ensure a smooth process in the event of a failure.

Conclusion: Inspection and documentation to avoid tax risks

Experience from recent tax audits shows that cash register disruptions and TSS failures are increasingly becoming the focus of the tax authorities.

The correct functionality of your POS system and TSS is therefore crucial for the smooth running of your restaurant business and for ensuring compliance with tax regulations. By regularly checking, carefully documenting and quickly acting in the event of irregularities and failures, you can prepare for possible audits by the tax authorities and minimise potential tax risks.