German VAT Returns - Avalara

Domestic and foreign businesses making taxable supplies of goods or services in Germany must register for VAT and report taxable transactions via periodic filings.

A German VAT return must include:

Output VAT (collected on sales)
Input VAT (paid on purchases)
Net VAT payable or reclaimable (difference between output and input VAT)
If applicable, a summary of intra-community acquisitions and supplies

Returns must be filed electronically using the German tax authority’s online portal.

How often are German VAT returns required?

All businesses operating in Germany are required to file an annual return. In addition, businesses with a VAT liability of €1,000-7,500 must file quarterly. Businesses with an annual VAT liability exceeding €7,500 must file VAT returns monthly.

Newly registered companies must submit VAT returns monthly for two years.

What German VAT can be deducted?

Businesses can typically deduct VAT on goods and services used for business purposes, provided they are correctly invoiced and are not explicitly excluded by German VAT law (such as gifts). Common deductible items in Germany include:

Office rent, utilities, equipment, and furniture
Professional services such as accounting and consulting
Marketing and advertising expenses
Travel expenses for business purposes, such as flights and trains
Internet services

What are the deadlines for filing German VAT returns?

Monthly and quarterly VAT returns are due by the 10th day of the month following the period end. For example, January’s VAT return is due by 10 February.

The annual German VAT filing summarising all transactions throughout the year is due by 31 May of the following year.

Any German VAT due must be paid at the same time.

More details on filing frequency and deadlines are below:

Type of return	Frequency	Filing deadline	Document	Format
VAT return	Monthly	10th of the month following the tax period	Form UST 1A	PDF
	Quarterly	10th of the month following the tax period	Form UST 1A	XML
Yearly return	Annually	31st July of the following year of the reporting year	Form UST 2A	XML
EC Listing	Monthly	25th of the following month	ZM (Zusammenfassende Meldung)
	Quarterly	25th of the following month	ZM (Zusammenfassende Meldung)
	Annually	25th of the following month	ZM (Zusammenfassende Meldung)
8th Directive	Annually	Minimum of 3 months and may not exceed 12 months, latest by 30 September following the period in the previous calendar year	Vorsteuervergütungsantrag	XML
13th Directive	Annually	At least 3 consecutive months and may not exceed 12 months, latest by 30 June following the period in the previous calendar year	UST 1 T	XML

German VAT penalties

The penalty for a late VAT filing in Germany is a charge of 10% of the VAT due, up to €25,000. A late payment can incur interest at 1% per month of the unpaid VAT. There is a four-year statute of limitations for German VAT, except for fraud, in which case it is extended to 10 years. False declarations can trigger audits or criminal charges.

How is German VAT credit recovered?

If there is a surplus of VAT inputs over outputs (more VAT incurred than charged), then a German VAT credit arises. In theory, this is due back to the VAT-registered business.

In the German VAT return, there is a box to tick to apply for a refund, which should be returned within three months. However, this may trigger a VAT audit by the tax authorities. Otherwise, the credit is rolled over to the next filing.

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