Application for VAT number.

Especially if you are active in shipping goods trans-border or if you provide services to other countries you will have to apply for a VAT number (USt.ID; Umsatzsteueridentifikationsnummer).

Register at German VAT tax office.

Here are some scenarios when you might have to register in Germany for VAT:

  • You are a distance selling company and ship goods to German clients, e.g. with Amazon Fullfillment Service FBA
  • You hold stocks in a consignment stockroom (warehouse) at the premises of your German client
  • You hold stocks in a German warehouse (no matter if it is your warehouse or the one of a logistic company)
  • Trade of goods in Germany (Acquisition and selling in Germany)
  • You import goods from EU no Non-EU countries to Germany
  • Organization of trade fairs, conferences etc. in Germany

FAQ.

How often do I have to file VAT declarations?

In the period of year 01 and 02 of your German activity, you have to submit VAT declarations monthly. Tax office might than reduce the frequency to quarterly or yearly submission.

Do I have to register immediately at German VAT office if I ship goods to German consumers?

No there are certain thresholds that have to be exceeded until there is an obligation to get registered.

Are sales considered in the month of shipment or at the month of money collection?

Both methods are possible. As long as certain thresholds are not exceeded, we would use ‘money collection’ method, as this is preferable for our clients.

Is there a materiality threshold?

Yes as long as you sales are below the EUR 17.500-threshold per year, you do not have to show VAT on your invoices.

Am I able to claim back German purchase VAT on invoices to my company?

Yes, as long as those invoices refer to your German VAT related business.