German VAT service
How to register for VAT in Germany?
Germany operates one of the most structured VAT systems in Europe, known for its clarity and efficiency. The business can apply for the tax number at the responsible local tax authority. The entrepreneur will explain in written, why he needs VAT ID Germany.
Businesses must register for VAT with the German tax authorities if their annual taxable turnover exceeds a certain threshold. After registration, businesses will receive a VAT identification number, which they must use when conducting transactions.
When is VAT registration required in Germany?
VAT registration in Germany is required under the following conditions:
If your business’s taxable sales in Germany exceed €22,000 in the previous calendar year, you must register for VAT. In the current year, if sales are expected to exceed €50,000, VAT registration is also required.
If you are selling goods or services in Germany and your business is established outside the EU, you must register for VAT regardless of your sales amount.
If you are a business established in another EU country and your sales to Germany exceed the distance selling threshold (which is €10,000), VAT registration is necessary.
If your business imports goods into Germany, VAT registration is mandatory for customs clearance purposes.
Even if your sales are below the threshold, you may choose to register for VAT voluntarily to reclaim VAT on your business expenses.
Always consult with a tax advisor to ensure compliance with local VAT laws and regulations.
VAT for foreign companies and non-residents
Many foreign companies have questions about how VAT applies when operating in Germany. This section covers the rules for non-resident businesses.
Do foreign companies need to register for VAT?
Yes, foreign companies need to register for VAT in Germany if they are conducting business there. This includes providing goods or services, even if they are only temporarily operating in the country. Foreign businesses can also claim back VAT paid on business-related expenses.
What documents required for VAT number registration in Germany?
- The entrepreneur generally has to complete a questionnaire issue the relevant local tax authority.
- Articles of association
- VAT number in EU member state.
- Incorporation certificate
It normally takes four to six weeks to obtain a tax number from the responsible local tax authority. The VAT number Germany for intra-community transactions or services send. Where receive from the Federal Central Office for Taxes (Bundeszentralamt für Steuern).
What is §F22 VAT certificate German?
German legislation requires all online marketplaces sellers (such as Amazon, eBay etc) to register for VAT in Germany. In addition, companies require obtain a special tax certificate (also referred to as an F22 VAT certificate). It can apply for once a Tax office. Where VAT number obtained. The VAT certificate is neither a replacement nor an alternative to obtaining a VAT number. It is an additional requirement for sellers on online marketplaces.
VAT Germany will confirm that the online seller is up-to-date with their German VAT compliance. All online marketplaces (such as eBay, Amazon etc.) has to collect F22 certificate. Failure to obtain these certificates. The online marketplaces (such as eBay, Amazon etc.) will automatically suspend in German account.
Difference between Steuernummer and VAT ID numbers (USt-IdNr)
The Steuernummer is for freelancers and businesses. It is a 10 or 11 digit number and has the format “25/345/67890“. It is sometimes written as “3012034567890” (the first two digits are the number of your Bundesland). It is also called Steuer-Identnummer or St-Nr.
The Umsatzsteuer-ID is the German VAT number. It is a 9-digit number with the format “DE123456789“. It is also called Umsatzsteuer-Identifikationsnummer, USt-Identifikationsnummer or USt-IdNr.
July 2021 changes for §22f certificate
Since the 1st July 2021, the requirement for the f22 certificate has been removed the German authorities. The VAT identification number is mandatory. Still German Marketplaces require the following information:
- Name of company
- Business Address
- Description of items
- Merchants bank details.
- Dispatch location & place of destination.
- Time and amount of sales.
- Electronic address or website
- Tax number in Germany
- VAT number according to §27a issued by the Federal Central Tax Office.
Who needs to pay VAT in Germany?
VAT is generally paid by consumers on the goods and services they purchase. Businesses, on the other hand, collect VAT on behalf of the government. However, VAT is only applicable if a business is registered for VAT purposes, meaning that certain small businesses may not need to charge VAT.
How to file VAT returns in Germany?
Most of the Germany VAT returns are file quarterly. But monthly returns must file, if the VAT payable for the preceding year exceeded EUR 7,500. If the VAT payable for the preceding year did not exceed EUR 1,000. German VAT rate is 19%. The taxable person exempt for preliminary filing returns. Newly establish taxable persons file monthly VAT return for the first and second year of registration. The preliminary VAT return submit by the 10th day after the end of the filing period. The VAT authorities receive payment in full by the same day.
How to pay VAT in Germany?
Businesses can pay VAT through bank transfer or via direct debit. The regular filing deadline is relatively short. The German VAT authorities allow a permanent one month filing and payment extension on written application. However, taxable persons submit monthly preliminary VAT returns. Pay VAT a special prepayment equal to 1/11 of the preceding year’s VAT liability by the due date.
Who can claim VAT refunds in Germany?
Import VAT refund
Import VAT (Einfuhrumsatzsteuer) is a special form of VAT, charged by Customs Authorities (Zoll). When you import goods from non-EU countries to Germany. Foreign companies pay import VAT in Germany especially for imports via the ports of Hamburg and Bremen. After registering for Germany VAT code. Foreign companies can usually apply for reimbursement of paid import VAT.
VAT refunds for EU companies
You are a VAT registered company in an EU Member State. So you can conduct cross border transactions in another Member State. Where you are not VAT registered. Then you are eligible to recover the VAT according to Articles 170-171a VAT Directive and following the full rules laid out in Directive 2008/9/EC .
VAT refunds for non-EU companies
If you are a VAT registered company establish outside of the EU. You can charge VAT on business activities conduct in an EU Member state where you are not VAT registered. Then you will entitle to deduct the VAT through means of a refund from the country where the VAT was paid according to the 13th Directive (69/59/EEC).
Export refund
The VAT can refund. If the buyers purchase and export a customer, whose residence is outside the European Union. Please note that in order to qualify for tax-refund the merchandise has to export within three months of purchase.
Before you purchase any goods in Germany. You should inform the retailer that you intend to export the goods to the United Kingdom or other Non EU countries. Your will receive a so-called “Ausfuhrbescheinigung” (export papers) or a Tax Free Shopping Check.
Avoiding VAT penalties
To avoid VAT penalties, businesses should maintain accurate records, submit returns on time, and stay informed about changes in VAT law. It is also helpful to consult a FZCO Accountants for guidance.
Deregistration
There is no special procedure or form required to deregister. The entrepreneur informs the tax office regarding VAT deregistration. It will explain the reason for the deregistration.
Compliance with VAT regulations is paramount for businesses operating in Germany. Non-compliance can lead to substantial penalties and legal repercussions. Ensuring accurate record-keeping, timely submissions, and adherence to changing regulations is essential to avoid pitfalls. You can discus with FZCO Accountants about German VAT registration and filing.
Frequently Asked Question!
- The standard VAT rate in Germany is 19%, but certain goods and services are eligible for a reduced rate of 7%.
Yes, foreign businesses must register for VAT in Germany if they are conducting taxable activities in the country.
Foreign businesses and travelers can claim VAT refunds by submitting the appropriate forms through the German tax portal.
Some services, like medical care and educational services, as well as exports, are exempt from VAT.
Businesses are typically required to file VAT returns quarterly, though small businesses may file annually.
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Late VAT filings can result in penalties, including fines and interest charges on outstanding payments.