Germany Tax Guide

Overview

Tax name: Umsatzsteuer (VAT)

Tax authority: Bundeszentralamt für Steuern (Federal Central Tax Office) and local tax offices (Finanzamt)

VAT Filing frequency: Monthly/Quarterly/Annual (determined by annual VAT liability - see Additional Requirements section)

Registration

Required documents:

• Up-to-date Certificate of Incorporation clearly showing the legal representative's name and their powers (individual or joint signatory rights)

• VAT Certificate (for EU established clients)

• Legal representative ID copy

• Additional documents vary by country of establishment (detailed information available in registration guide, for ex. Bank certificate, articles of association + shareholders' ID copies)

Expected timeline: 8 weeks

Registration thresholds:

• Local companies: EUR 22,000 annual turnover threshold

• Foreign companies: No threshold (immediate registration required) except B2C distance sales from EU: EUR 10,000 EU-wide threshold

• General requirement is to store goods in Germany, if the client is not yet storing goods in Germany, they need to indicate the warehouse address where they plan to store the goods from the date of registration

Transfer of Service

Required documents:

• Varies by client establishment (EU vs non-EU vs local)

• Certificate of Incorporation and legal representative ID required -- just for us to cross-check the data and if the client requires a detail change at the TA

• Local and EU VAT certificate

• Last submitted VAT return -- to check their frequency -- for transfer they need to pick and inform us about their filing and payment frequency so that the portal is set up correctly

Expected timeline: as soon as the Power of Attorney has been submitted and registered by the TA (approx. 2 weeks)

Online Credentials needed: if the client is a German established entity and they have their own Elster account + they want us to submit their returns. If they don't have an Elster account, it is not required.

Special considerations:

• All tax authority correspondence will be sent to the correspondence address provided in the PoA (Taxually's address) unless the client requires differently

• For non-EU clients, all correspondence handled via specified correspondence address (from Aug 2025 this will be also Taxually) unless the client requires differently

• Refunds: Carry forward only possible at special separate request from the TA or client, otherwise standard repayment to SEPA bank account will happen after the submission of that specific VAT return

Filing Information

Filing deadline:

• Monthly/Quarterly: 10th of following month/quarter-end (unless Saturday, Sunday or public holiday-> then the next working day)

• Annual return: standard deadline is the end of July of the next year

Payment deadline: Same as filing deadlines

Late filing penalties:

• VAT return: 0.25% of VAT, minimum EUR 10 per month started, minimum EUR 25 for annual returns, maximum EUR 25,000

• EC Sales List: Non-filing penalty only after several announcements

• Intrastat: Normally none

Accepted payment methods: Bank transfer (payments can be made directly to tax authorities) or SEPA B2B direct debit at the request of the client

Additional Requirements

Intrastat reporting: Yes - EUR 3,000,000 (Arrivals) / EUR 1,000,000 (Dispatches) thresholds; deadline - the 10^th^ working day of next month

Fiscal representation: Not required

Filing frequency determination:

• Default first two years after VAT registration: Monthly

• If VAT payment obligation less than EUR 9,000 in previous year or consistent repayment position: Quarterly

• If VAT payment obligation less than EUR 2,000 in previous year: Annual

• EC Sales List: Monthly if EC Sales of goods > EUR 50,000 per quarter; Always quarterly if only services; Annual under specific conditions

Advance Payment Requirements:

• Monthly filers requiring 1-month filing extension must make advance payment by 10th February each year

• Calculated based on VAT due in previous calendar year (1/11^th^ of previous year's VAT)

• No prepayment required if overall year was in recoverable position or if the filing frequency of VAT return is quarterly

• Due to our automized system we encourage our clients to keep the standard deadlines as the filing happens automatically within the standard deadlines

Interest and Penalties:

• Late payment penalty: 1% of payable VAT (appealable)

• Interest: 0.5% per full month (minimum EUR 10) for late payments

• No separate penalty for late registrations

Other:

EORI application is only possible for clients that have a fixed establishment in the EU. Using a warehouse does not constitute a fixed establishment for VAT purposes. When they use a representative (either direct or indirect) they should tell them that they don't need an own EORI number. Further justifications and arguments received from the Customs office in this matter we can send to the client at their wish.

Useful Resources

Federal Central Tax Office: https://www.bzst.de
German VAT Act: VAT Act - NWB Gesetze
ElsterOnline Portal
Intrastat Information: https://www.enwb.destatis.de/idev/doc/intra_en/doc/IntraCommunity.pdf
EORI Registration: https://www.zoll.de/DE/Fachthemen/Zoelle/EORI-Nummer/Beantragung-einer-EORI-Nummer/beantragung-einer-eori-nummer_node.html