Union and SPD Propose Digital Payments in a Push for Tax Transparency
Grups pensioner at forcing electronic transactions to be compulsory - EU and SPD propose enablement of electronic payment capabilities
Here's a lowdown on the latest bureaucratic fuss! The Union and Social Democratic Party (SPD) are up to something big - they're advocating for a mandatory electronic payment option in their coalition discussions, with cash as an alternative.
According to reports, this proposal is aimed at cracking down on tax evasion in industries like hospitality. Spokesperson Schrodi explains, "We're determined to combat tax evasion in cash-heavy sectors and ensure fair play for all legitimate businesses." Sounds like the end of the hidden cash era, as Schrodi demands an end to the old-school open cash registers.
While the German Hotel and Restaurant Association (Dehoga) expresses concerns about additional burdens, the German Tax Union welcomes the digital payment push. The Union's federal chairman, Florian Köbler, thinks a digital payment revolution would significantly boost tax revenues.
But hold up, here's the catch - according to our data, there's no concrete plan yet. But let's not forget that the digital realm is just heating up. The European Central Bank (ECB) is exploring the idea of introducing a digital euro, which could bring some major changes to the hospitality industry. And then there's the EU's VAT in the Digital Age (ViDA) package, aiming to simplify VAT systems and modernize reporting, although it might also add new burdens.
In terms of the current state of affairs, it's estimated that tax evasion in cash-intensive sectors swindles the state out of a whopping 10-15 billion euros in taxes annually, not to mention the lost income tax and social security contributions. These hidden transactions add up to a staggering 70 billion euros yearly.
So, buckle up, hospitality industry! Change is coming, whether it's through our homegrown proposals or European-wide initiatives. Fingers crossed this transition leads to a more transparent, efficient, and fair system for everyone!
- The Union and SPD's proposal for mandatory electronic payments aims to register robust tax revenues, specifically targeting industries with high cash transactions like hospitality.
- Schrodi, the SPD's spokesperson, emphasized the importance of implementing digital payments to combat tax evasion, advocating for an end to traditional cash registers and the WAMS (open cash registers) system.
- The German Tax Union, represented by its federal chairman Florian Köbler, lauds the push for digital payments, believing it could lead to increased tax revenues, in line with the European Central Bank's exploration of a digital euro and the EU's ViDA package, intended to streamline VAT systems and modernize reporting.
