From 2026, odometers without a TSE will not be permitted. Taxi and hire car companies must convert, report and archive their systems in good time. This overview summarises the most important obligations, deadlines and consequences.
A. What is the TSE and how does it work?
Technical safety equipment, or TSE for short, is a certified safety system designed to prevent tampering with driving records. In the hire car industry, this function is also used to check compliance with the obligation to return (Section 49 (4) sentence 3 PBefG). TSEs ensure that every transaction – such as a journey, cancellation or payment – is cryptographically signed with a time stamp, amount and serial number. The data is stored in encrypted form and can be transmitted to the tax office or requested by the authorities if required.
A TSE consists of three elements:
- Security module
- Storage medium
- Digital interface
B. What are the deadlines for retrofitting?
From 2026, electronic recording systems without a TSE will be prohibited. Violations are considered an administrative offence and can be punished with fines of up to €25,000.
The use of older INSIKA systems is only permitted until 31 December 2025.
From 1 January 2026, all vehicles must be equipped with a TSE.
C. Practice: Reporting obligation & storage
Reporting to the tax office
- TSE systems installed by 30 June 2025 must be reported to the responsible tax office by 31 July 2025.
- Systems installed later: within one month of installation
- The notification is made online via ELSTER or the ERiC interface and includes information on the serial number and place of use of the TSE.
Data archiving
The records must be stored for ten years – both locally (e.g. hard drive) and cloud-based.
D. Summary
| Topic | Details |
|---|---|
| Objective of the TSE | Tamper-proof cash registers – verifiable business transactions |
| What is recorded? | The TSE signs all relevant data recorded by the taximeter or odometer, e.g. start and end of the transaction, amount, time and a consecutive transaction number |
| Start date | 1. January 2026 |
| Notification of commissioning to the tax office | ELSTER-based reporting – up to one month after installation |
| Storage | 10 years – local or cloud-based |
| Costs | from approx. €500 per vehicle, tax-deductible |
| Consequences of non-compliance | Fines of up to €25,000, estimates during tax audits |
E. Legal background
The legal framework for TSEs is determined by Section 146a (1) sentence 1 of the German Fiscal Code (AO) and the Cash Security Ordinance (KassenSichV).
§Section 146a of theAO regulates the use of electronic recording systems and stipulates that every business transaction and other transactions that must be recorded must be recorded individually, completely, correctly, in good time and in an organised manner. The electronic recording system and the digital records must be protected by a certified technical security device. This certified technical security device must consist of a security module, a storage medium and a standardised digital interface. The digital records must be backed up on the storage medium and kept available for inspections and external audits by means of electronic storage.