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VAT registration in Germany

  • Currency: EUR

  • VAT is called: Umsatzsteuer, abbreviated USt

  • EU Member: Yes

  • Format VAT number: DE999999999 (for EU trade)

  • Format Tax number: 99/99999/99 (in domestic trade) VAT rates: 19%, 7%

Foreign companies that are not established in Germany, but sell services in Germany, e.g. real estate services or goods that are installed, can in most cases avoid VAT registration. The reason is that Germany applies Reverse Charge if the buyers are exclusively German-registered businesses. Reverse Charge means that the buyer must collect the VAT and that the seller invoices without VAT. However, the buyer's VAT number and why you invoice without VAT must be stated on the seller's invoice. On the other hand, foreign companies that sell goods domestically in Germany must register for VAT, as Reverse Charge is not applied to pure sales of goods (with some exemption).

In addition to domestic sales of goods, the following transactions are examples of when VAT registration becomes necessary in Germany:

  • Sales of electronic or telecommunications services to private individuals in Germany

  • Goods transports from Germany to other countries performed on behalf of private individuals, e.g. removal of household goods

  • Passenger transport in Germany

  • Own warehouse in Germany

  • Business management on site in Germany

  • Purchase of goods from the EU to Germany or sale of goods to the EU from Germany

  • Import to or export from Germany

  • Resale of several types of costs (eg hotel accommodation or bus transfers in Germany) that occur at conferences, trade fairs, etc.

VAT registration in Germany

The application for VAT registration in Germany is made on special forms that are sent to the Finanzamt in Germany. You must of course apply for VAT registration in good time before the taxable activities begin, but you can also register retroactively. VAT registration in Germany usually takes 3-4 weeks. The tax authority then returns and issues a "Tax number". If you have applied for a VAT number, this will be announced separately.

VAT reporting in Germany

The VAT reporting period can be monthly, quarterly and in some cases even yearly depending on balance between out- and ingoing VAT. In case the company carries out EU sales of goods or services or participates in triangulation the EC sales list has to be submitted as well. Intrastat reporting is due when dispatches and/or arrivals in between EU-countries exceed current threshold.