Germany > Legal entities > VAT registration in Germany
VAT Registration
in Germany (Umsatzsteuer)
Has your company achieved a certain turnover in Germany? We can help you with VAT registration.
We can help you with administration and solutions in Germany
Has your company achieved a certain turnover in Germany, are you carrying out work in Germany through subcontractors or are you carrying out work for which you are obliged to register for VAT in Germany? We will be happy to arrange the registration as well as the filing of German VAT reports for you quickly and gladly.
As a rule, you are obliged to register for VAT in Germany and file VAT reports in the following cases:
- If you sell goods online and physically store them in Germany, and if your goods are not stored in Germany but shipped from your home country, then you do not need to register for VAT. You would only be obliged to do this once your turnover exceeds EUR 10,000, which applies to the whole EU. Once this threshold is exceeded, sellers are obliged to submit VAT returns in each country to which they send their goods. To facilitate the VAT reporting system, from 1 July 2021 it is possible to register for the so-called OSS system (One-Stop-Shop), which allows businesses to remit VAT to all Member States centrally from one country.
- If you carry out construction work in Germany and use subcontractors, such as other companies or freelancers, to do the work. In this case, you are only able to claim a refund of the German VAT paid via the reports.
If you carry out work for a business in Germany, you do not pay VAT, but you can reclaim the German VAT you paid, e.g. on costs incurred for fuel, accommodation, purchases, etc.
If you carry out work in Germany for a natural person, i.e. a non-entrepreneur, you have to issue your invoices with VAT, which you are then obliged to pay to the German tax authorities.
Frequently asked questions
When does a foreign company have to register for VAT in Germany?
Registration may be necessary if the company carries out taxable transactions in Germany where the tax is not paid by the recipient of the service or by a special scheme. The type of supply, place of delivery, customer status and possible storage of the goods in Germany are decisive. We will assess the planned transactions and arrange registration if necessary.
Does German VAT registration arise when storing goods in Germany?
Placing your own goods in a warehouse in Germany and then delivering them locally may result in the obligation to register for German VAT. The assessment itself depends on the movement of the goods, the method of sale and the special regimes used. We will review the logistics model and set up the correct procedure.
Can the OSS system replace VAT registration in Germany?
The OSS allows selected cross-border sales to EU consumers to be reported through a single Member State, but it does not replace VAT registration for every transaction. For example, it does not automatically apply to local supplies from a warehouse in Germany. We assess which supplies can be reported through the OSS and which require German VAT registration.
How is German VAT applied to construction work?
In the case of construction works, under certain conditions, the obligation to pay VAT may pass to the recipient of the service under the reverse charge regime. The outcome depends on the type of work, the status of both parties and the specific transaction. We will review the invoicing regime and ensure the necessary VAT declarations and reports.