German VAT Registration for Foreign Businesses

There are a number of trading situations that typically require a foreign trader to register with the German tax authorities. These follow the broad EU VAT rules, and include:

• Selling goods over the internet (e.g. via Amazon, eBay, and eCommerce) to German consumers, subject to the German distance selling VAT regisration threshold
• Buying and selling goods in Germany
• Moving goods between Germany and other EU member states (intra-community supplies), either as sales (dispatches) or purchases (arrivals)
• Importing goods into Germany from another country, either from within the EU or from outside the EU
• Goods held in consignment stock
• Holding live exhibitions, events or training in Germany
• If a company is otherwise a non-VAT trader, but is receiving services in Germany under the reverse charge rule
• The self supply of goods

Foreign companies, or ‘non-resident’ traders, providing goods or services in Germany to local businesses or consumers may have to register their business for German VAT. They will then have to follow the German VAT compliance rules, including invoicing and VAT rates, as well as pay over any German VAT due.

After VAT registration in Germany, for the first two years the foreign company is generally obligated to submit monthly VAT advance returns and an annual VAT return. These are sent electronically to the tax authorities. The language of correspondence is German.

Consultinghouse has advised many foreign companies and corporations for many years about VAT registration in Germany.

Our team at Consultinghouse has also carried out several hundred VAT registrations for foreign companies in Germany over the years. This means that Consultinghouse is familiar with the exact requirements and the procedure with the German authorities for the VAT registration of foreign companies.

We ensure that VAT registration will be completed as quickly as possible.