What does the TSE obligation mean for entrepreneurs and business owners?

Since January 01, 2023, the time has come: As the owner of an electronic cash register, you are generally obliged to equip it with a technical security device. If you fail to do so, you will be subject to severe penalties. Fines of up to 25,000 euros are quite possible. The TSE obligation applies to all sectors. This means that even as a retailer , you must use a TSE-compliant cash register. What exactly the technical security device is, what purpose it serves and how the TSE is integrated in a legally compliant manner, we explain by the way in this article in detail. Here, we would especially like to introduce you to the difference between the two common TSE models: the hardware TSE and the cloud TSE.

How does TSE work in practice?

As mentioned at the beginning, the Technical Security Device is intended to prevent manipulation. For this purpose, a TSE cash register stores all important transactions in a read-only area. This is often referred to as a container . Once data has been stored in this container, it cannot be changed later. It is easy to check whether a cash register complies with TSE requirements. In addition to the date and information about the goods, a signature and a public key or QR code are printed on the receipt of a TSE cash register.

Does the tax office check the implementation of the TSE obligation?

As a receipt issuance obligation - also known as voucher obligation - has been in place since 2020, you must offer your customers a receipt to take with them when they purchase goods. In addition to the customers, the tax authorities can therefore also check at a glance whether you fulfill the TSE obligation - or not - through covert test purchases.

Do I have to report the TSE cash register to the tax office?

In principle, every change to a POS system must be reported to the responsible tax office within one month - including the integration of the TSE. This is regulated in § 146a Ordnungsvorschrift für die Buchführung und für Aufzeichnungen mittels elektronischer Aufzeichnungssysteme; Verordnungsermächtigung. In order to facilitate this reporting, the BMF wants to introduce a digital procedure through which the TSE cash registers can be registered online. However, the establishment of this procedure is still awaited, so that the registration of the TSE cash register is currently not yet necessary. Should this change, we will of course keep you up to date here!

TSE obligation: Can I retrofit older cash register models?

Modern POS systems like the one from LocaFox already comply with all the requirements of the Federal Ministry of Finance such as the German Fiscal Code (AO) and are therefore naturally also equipped with a TSE. However, this is not a matter of course. This is because older POS systems in particular often do not have a technical security device. In order for the cash register to meet the legal requirements, it must therefore be retrofitted. The cost of the TSE installation is usually low. Nevertheless, buying a new cash register can be the more efficient choice in the long term. The reason: modern cash register systems offer you many other functions that support you in your everyday business. At LocaFox, you will therefore find various packages tailored to startups, retailers, medium-sized chain stores or small franchises. Even if we don't offer a suitable solution: Our parent company ANKER offers you further POS solutions in the hardware and software area that are suitable for companies of any size and industry.

What are the TSE variants?

Whether you are upgrading your current POS system or purchasing a new one: To meet the TSE obligation, you have two different options to choose from - hardware TSE and cloud TSE. Both options meet the TSE obligation and are therefore compliant with the law. However, there are some differences that you should be aware of.

TSE hardware or cloud solution: what's the difference?

With the hardware solution, the cash register is provided with an external data storage device. This can be a commercially available USB stick or its SD card. In addition to a data storage device, these also contain the TSE security module. Cloud TSE, on the other hand, works completely online and only requires a stable Internet connection. So you don't need to have an external data storage device installed. For a better overview, we have summarized the features of the two variants in a table:

Hardware TSE vs. cloud TSE: the most important differences at a glance

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Hardware TSE was standard in many hair salons, steam stores or bakeries until a few years ago, as only this solution was certified. Later, to ensure technology freedom , cloud systems also received certification, displacing many of the classic hardware solutions. As a LocaFox customer, you can now order the TSE hardware solution free of shipping costs throughout Germany and benefit from extensive support and hardware service. Of course, our TSE module is state-certified and therefore compliant with the law. Nevertheless, more and more customers prefer the cloud model. Because this has many advantages that will also benefit you in the long term.

What are the benefits of a cloud TSE?

• Uncomplicated setup: A cloud TSE does not require any hardware components. It can be set up quickly and always stays up to date thanks to automatic updates.
• Mobile and flexible: Digital technologies are also becoming increasingly important in retail or medium-sized businesses. With a cloud TSE, you get mobile access to your data and can integrate multiple checkouts at the same time. This is a huge advantage, especially for chain stores or companies with multiple locations.
• High security: LocaFox's cloud TSE ensures that all processes and data are recorded securely and in compliance with the law on German servers.
• Infinite memory: USB sticks or SD cards only offer a limited amount of memory. So sooner or later, this memory has to be replaced or emptied. With a cloud TSE you avoid this problem.
• No hardware interface: Hardware TSEs are usually connected via the receipt printer. If this does not work, the TSE will not work either. For the cloud TSE, you only need an active Internet connection. Should this fail, the data is stored locally and transferred subsequently - in full compliance with the law.  

Where can I get a cloud TSE?

At LocaFox, we offer both hardware and cloud TSE. However, our recommendation is clearly the Cloud TSE. This is because it does not require a hardware interface, is certified for an unlimited period of time, runs conveniently in the background without your intervention and is even included in the LocaFox package. Despite these advantages, in some cases hardware TSE may be the better option. We will be happy to show you which solution is ideal for your business in a personal consultation. In doing so, we take your requirements into account and are also there for you after implementation with comprehensive service and support .

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