Germany

If a company not established in Germany is providing ‘taxable supplies’ of goods or services in Germany, it may have to obtain a non-resident Germany export VAT registration. In accordance with the EU VAT Directive, foreign traders are legally obligated to register for Germany export VAT in certain circumstances in order to report taxable transactions and declare VAT that must be charged.

It is important that all businesses with any commercial activity in Germany assess their compliance obligations and register prior to commencing taxable transactions if applicable.

What you need to know

There are various scenarios that would trigger an obligation to register for VAT in Germany. Some of the most common examples are:

• Importing goods into Germany from outside the European Union
• Buying and selling goods in Germany (excluding domestic reverse charge)
• Selling goods from Germany which are delivered to customers outside of Germany (business or private customers)
• Acquiring goods in Germany from another EU country (Intra-community acquisitions)
• Holding inventory at Amazon or other in Germany for sale, distribution or consignment
• If a company is otherwise a non-VAT trader, but is receiving services in Austria under the reverse charge rule.

If you already do business or plan to do business in Germany, you should contact TIMEVAT immediately. We speak the language, have easy access to the German authorities and now the procedures. Please contact us for advise and assistance.

VAT Rates, Formats & Thresholds

VAT Rates		VAT Designation	VAT Number Format	Distance Selling Threshold	Intrastat Threshold
19%	(Standard)	MwSt	DE123456789	€ 10,000 *)	€ 800,000	(Arrivals)
7%	(Reduced)				€ 500,000	(Dispatches)

*) As of 1st of July 2021 companies are eligible to sign up for (One-stop-shop) the OSS scheme by SKAT when the total annual EU sales exceeds the threshold of € 10,000.

VAT return periods
Monthly, quarterly or annually

Annual returns
Yes if VAT return period is monthly or quarterly

EC Sales Lists frequency
Monthly or quarterly

EC purchase lists
No

Other reporting requirements
No

Reverse charge
The extended reverse charge applies to a wide range of services in Germany. Please contact us if you would like details of how the extended reverse charge applies in Germany.

Fiscal repræsentation
In principle a non-established business may not appoint a tax representative. However, a tax representative may be appointed if the non-established business makes only exempt or exempt with credit supplies.