German VAT registration

Domestic businesses in Germany must register for VAT if they exceed the threshold of €25,000 per annum.

EU businesses selling goods or services over the internet to customers in Germany have a VAT registration threshold of €100,000 per annum.

For foreign (non-domestic or non-resident) businesses operating in Germany that are registered for VAT in their home nation, the German VAT registration threshold is nil. Other trading situations that would typically require a foreign business to register for VAT in Germany include:

• Importing goods into Germany from another country, either from within or outside the EU
• Moving goods between Germany and another EU member state (intra-community supplies), either as sales (dispatches) or purchases (arrivals)
• Holding goods as consignment stock
• Holding live exhibitions, events, or training in Germany
• If the business is a non-VAT trader but is receiving services under the reverse charge rule
• The self-supply of goods

German tax authorities typically require extracts from the articles of association of the business. They ask for additional information if the company has a limited trading history and/or is dealing in goods susceptible to VAT fraud. Requests include:

• 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 the registration application has been approved, it could take up to 11 weeks for a business to receive its German VAT identification number.

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.

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’s Federal Central Tax Office (BZSt) is the tax authority that gives businesses Germany’s three different types of tax identifiers: the tax identification number (tax ID), the tax number, and the VAT identification number.

Every German citizen is given an 11-digit tax ID at birth, which helps to ensure that tax returns are matched to the right taxpayers. A tax number is given to a German citizen the first time they file a tax return or register a business, to assist with their dealings with the relevant tax office (it’s possible for individuals to have multiple tax numbers, depending on the nature and location of their business).

A VAT identification number is sometimes abbreviated as VAT ID or VAT ID no. Only businesses — domestic and foreign — can be allocated a VAT identification number. It must be stated within invoices, including those for intra-community supplies.

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).