The general format of a German VAT identification number is the German country code prefix followed by nine digits: DE 123456789.

The German tax office splits VAT numbers into two: one for reporting VAT filings and general correspondence; the second for identification for companies undertaking EU cross-border transactions (intra-community supplies).

Applications for a German VAT identification number must be submitted to the appropriate German tax office. The location of the tax office depends on where in the EU the applying business is based. Non-EU companies wishing to register must apply to the Berlin tax office.

The German tax offices will require details of the applicant, which typically includes extracts from the articles of association of the company. The tax office may ask additional questions if the company has a limited trading history and/or is dealing in goods susceptible to VAT fraud. Typical requests include but are not limited to: 

• VAT certificate from the business’s home nation 
• Company registration certificate 
• Company certificate confirming the current company directors 
• An extract from the company’s national trade register
• Proof of planned business in the form or contracts or invoices 

Some of the requested documents may need to be translated into German by a certified translator. Once the requested documents have been submitted and verified by the German tax authority, and the registration process is complete, it could take up to 11 weeks for a business to receive its German VAT identification number. 

Businesses can submit their application for a VAT identification number online; however, the process is available in German only.

A small range of groups and entities do not require a VAT identification number in Germany. These are: 

• Freelancers and self-employed people who provide and obtain services within Germany only
• Freelancers and self-employed people who trade across borders with private individuals only
• Small business owners who use the exemption for small businesses

Germany currently has B2G e-invoicing mandates in place, targeting the federal administration and the majority of German states. Mandatory B2B e-invoicing in Germany is currently expected for 2025, when taxpayers will have the obligation to receive structured e-invoices. There will be no obligation to issue structured e-invoices and no obligation to get the consent of the receiver if the invoices are sent in a paper form or non-structured formats. 

From 2027, businesses with revenues exceeding €0.8 million will be required to issue structured e-invoices. From 2028, all businesses will be required to do the same. Exemptions include small-value invoices under €250, travel tickets, and invoices linked to intracommunity deliveries or exports.

If you’d like to speak to an EU VAT expert about getting a German VAT identification number, speak with Avalara today.

IResearching German VAT legislation should be the first step to understanding your VAT obligations in Germany. This can be a challenge, and distract you from more revenue-generating tasks. Avalara solutions can help your German expansion by automating complex and time-consuming compliance tasks, so you can focus on what you do best. 

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As with operating in a domestic market, diligence should be paid to VAT returns and VAT registrations by a foreign company when operating in Germany. If a business fails to file a VAT return in Germany, it could face a financial penalty of 10% of the VAT due (up to a limit of €25,000 per return) from tax authorities.

Late payment of VAT can earn a business a fine of 1% of the VAT due per month of delay. Having an invalid VAT number in Germany can also lead to fines of up to €50,000. It’s essential for businesses to check the VAT ID of new business partners and do regular qualified searches on saved VAT ID numbers.