German VAT registration
German VAT information
Just like in the Netherlands, Germany has 3 VAT rates: general, low and zero rate.
- General or high VAT rate in Germany = 19%
- Low VAT rate in Germany = 7%
- The zero rate also exists as a VAT rate in Germany.
German e-commerce figures
- German population = 83 million
2020: 85% of the population in Germany buys online which is expected to increase to 95% by 2023
German e-commerce top 5 accounts for 47% of the revenue from the top 100:
- Amazon.de = €10.5 billion
- Otto.de = €3.4 billion
- Zalando.de = € 1.6 billion
- MediaMarkt.de = € 1.2 billion
- Notebooksbilliger = €1.1 billion
When do you need a German VAT number?
You need a German VAT number if:
- you buy goods in Germany and therefore pay German VAT. You then sell
- these goods again in Germany (incl. local stock building).
- you buy goods in Germany and therefore pay German VAT. You then deliver it within other EU countries or you export it to countries outside the EU.
- you export excise goods (beer, wine and intermediate products, other alcoholic products, tobacco products and/or mineral oils).
- you import goods into Germany from countries outside the EU. You then sell these goods in Germany or deliver them within EU countries.
- you sell products online through Amazon. Amazon.de asks for a VAT registration number and a Bescheinigung nach § 22f Formular (form § 22f).
- you sell products online through Pan-European FBA* program, you have to register directly for VAT in various EU countries.
- transfer your own goods to Germany (notional Intra-Community delivery).
- you are organizing a conference, workshop, seminar or congress in Germany and you charge a registration or participation fee or an amount for access.
*FBA stands for Fulfillment by Amazon. Amazon’s inventory warehouses are called “fulfillment centers.”
Threshold amounts Germany (valid until July 1, 2021)
The threshold amount of VAT registration Germany for distance sales: €100,000
Intrastat threshold amounts in Germany:
- Arrivals €800,000
- Dispatches €500,000
Threshold amounts only valid until the 1st of July 2021, what then? (One Stop Shop request VAT number Germany)
The thresholds for intra-EU distance sales per EU country will expire on 1 July 2021. Instead, 1 combined threshold amount of 10,000 euros (valid for all intra-EU distance sales of goods together with the sale of digital services to consumers in the EU). If your total amount of foreign sales in EU countries falls below 10,000 euros annually remains, as a Dutch webshop you may continue to charge Dutch VAT as long as the transport of the shipment starts in the Netherlands and that you have an establishment in an EU country. As soon as you exceed the threshold of 10,000 euros, you charge the VAT rate in the account of the EU country where your customer is located. You can arrange your foreign VAT return in 2 ways:
- You file a local VAT return per EU country in which you have sold.
- You register your company for the ‘Union scheme’ within the new one-stop-shop system of the Tax Authorities.
Requesting a German VAT number for Amazon FBA
To sell successfully on Amazon, it’s best to set up stock locally. This means that the customer receives the product the next day. To make use of Fulfillment by Amazon (FBA) you will need an F22 certificate and a German VAT number. If you do not do this, your Amazon account will be blocked immediately. Amazon.de asks for a steuer number, German VAT number (UstId.Nr) and F22 statement for sales via Amazon FBA from the German distribution center.
What do I get when I apply for a German VAT number?
When applying for a German VAT number, you will receive the following documentation from us:
- Steuernummer: The German VAT number. For example: DE0123456789
- F22 certificate: proof from the German tax authorities that your company is liable for tax in Germany
- Umsatzsteuer-Identifikationsnummer (USt-IdNr.): German tax identification number (German Tax ID)
How can you apply for a German VAT number?
Do you want us to register a German VAT number for you? Our local Staxxers are happy to help and at your service.