- VAT REGISTRATION & RETURN
VAT Registration In Germany
VAT rules in Germany are based on the EU Directives which apply throughout all 27 Member States. However, Member States still set their own VAT rates – in Germany, the standard rate is 19%. A reduced rate of 7% applies to certain categories of goods/services such as food, books, hotel accommodation and cultural services.
Germany VAT key points:
A valid VAT registration is essential for storing inventory in Germany, regardless of your business’s location.
Regular VAT returns must be filed as per the frequency required by the German Tax Authority.
Annual return filing is mandatory for each calendar year after business registration.
Germany VAT Rates & Exemptions
The standard VAT rate in Germany is 19%, and applies to most goods and services. It’s referred to as Umsatzsteuer (USt.) or Mehrwertsteuer (MwSt.) in German, and is always included in the final retail price: If the price label says €30, you pay €30 including VAT.
The standard Germany VAT rate applies to the following items:
Rate
Type
Which goods or services
Rate
19%
Type
Standard
Which goods or services
19%
Standard
Non-essential food items
Children’s car seats
E-books, DVDs, CDs, etc.
Pay TV/Cable
Shoes and leather goods
Hairdressing
Most pharmaceutical products
Private passenger transport
Admission to amusement parks
Admission to some sporting events
Clothing and household linen
The reduced Germany VAT rate applies to the following items:
Rate
Type
Which goods or services
Rate
7%
Type
Reduced
Which goods or services
7%
Reduced
Essential food items
Water supplies
Newspapers
Writers/Composers
Hotel accommodation
Restaurants
Plants and animals
Books (standard format)
Periodicals (magazines, etc.)
Restaurant and catering services
Medical equipment for disabled people
Public passenger transport
Admission to some sporting events
Certain feminine products/pharmaceuticals
Medical and dental care
Works of art
Admission to cultural services (theatre, etc.)
Additionally, some goods and services are subject to a zero-rate VAT: They’re exempt from VAT but are also taxable, which means that suppliers and service providers can still claim back VAT paid on the costs of that supply or service.
VAT Registration Process
- Eligibility
- Verify that you need to apply for VAT
-
Fiscal
Representation
- Check whether you need to appoint a fiscal representative
- Submission
- Submit your application, along with any supporting evidence
- Result
- Receive and verify your VAT number
- Start Selling!
- Start business in your intended market!
VAT Filing & Return Deadlines
- Filing of VAT Returns
German VAT returns are typically filed electronically using Germany’s official electronic filing platform. The system is easy to use and allows businesses to submit their tax returns on time and maintain compliance with tax authorities.
- VAT Return Deadlines
The deadline for submitting VAT returns depends on the amount of net VAT you owe from the previous calendar year. If you have a net VAT due below €7,500, you’re required to submit quarterly preliminary returns. On the contrary, if you have a net VAT due below €1,000, you’ll only need to submit an annual return.
Otherwise, the general deadline for filing VAT returns in Germany is the 10th day of the month following the reporting period.
- Advice for Ecommerce Sellers & Marketplaces
Unlike traditional businesses, ecommerce and marketplace sellers are subject to distinct VAT rules In Germany. If you are an online seller, it’s important that you understand and comply with these rules, which include regulations on stock location and the One Stop Shop (OSS). For instance, if you store inventory in Germany, you’ll have to register for VAT no matter where you’re based.
VAT Filing & Return Deadlines
*The information is based on our services; details may slightly differ from local authorities.
Country | VAT Filling Frequency | VAT Filling Deadline |
France | Monthly/Quarterly | 19th or 24th of the month/quarter following the return period |
Germany | Monthly/Quarterly/Annually | 10th of the month/quarter following the return period |
Spain | Quarterly | 20th of the quarter following the return period |
Italy | Quarterly | End of second month of the quarter following the return period |
Poland | Monthly | 25th of the month following the return period |
Czech Republic | Monthly | 25th of the month following the return period |
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Frequently Asked Questions
From the point your application is submitted, on average it will usually take at least a few months for your application to be processed.
Depending on where your business is established, your application will be submitted to one of the German Tax Authority’s regional tax offices. Each regional office will have different lead times, and some may request additional supporting documentation to proceed with your application.
We would recommend that applicants wait at least 3 months before following up with the tax authority for a status chase, as most VAT numbers are released within this timeframe.
The standard rate of VAT in Germany is 19%. A reduced rate of 7% applies for certain categories such as food and books.
Please check with the German Tax Authority if you are unsure on how to classify your products.
No, Germany does not require foreign businesses to appoint a fiscal representative.
Businesses are able to liaise with both the Federal German Tax Authority and the responsible regional tax office directly. Limited English-language support may be available, depending on the tax office.
Applications are made to one of the German Tax Authority’s regional tax offices, depending on where your business is based. This tax office will issue you with a Steuernummer – your local Tax Identification Number. From this point, you will be obligated to file VAT returns according to your filing frequency.
2-4 weeks after the local number is issued, the German Tax Authority’s Central Tax Office (Bundeszentralamt für Steuern – BZSt) will then issue a VAT/GST number, which is a European VAT number used for cross-border trade. It is this number that Amazon verifies in order to allow sellers to use their platform.
When applying for VAT, the German Tax Authority does not accept the registered business address by default.
There are two other factors that they consider: i) the director’s place of residence, and ii) where the company decision-making process takes place. It is assumed that the director is responsible for the decision-making process, unless supporting evidence is provided to show otherwise.
If the director is residing in another jurisdiction to that of the business, then the German Tax Authority may decide to issue the VAT registration in the director’s name and address instead. This can only be changed if supporting evidence as described above is provided.
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