Germany

German VAT FZCO Accountants

VAT registration Germany 

Germany VAT threshold is 10,000 EUR or storage in German. Accordingly, sellers from other EU countries have to register for VAT in Germany . If they sell goods worth more than 10,000 EUR to Germany within a calendar year. The business can apply for the tax number at the responsible local tax authority.  The entrepreneur explaining in writing why he needs to register for German VAT.

What documents required for VAT registration in German?

  • The entrepreneur generally has to complete a ques­tionnaire issued by the relevant local tax authority.
  • Articles of association 
  • VAT number in EU member state.
  • incorporation certificate

It normally takes four to six weeks to obtain a tax num­ber from the responsible local tax authority. The German VAT number for intra-community transactions or services send, where receive from the Federal Central Office for Taxes (Bundeszentralamt für Steuern).

F22 Tax Certificate

German legislation requires all online marketplaces sellers (such as Amazon, eBay etc) to register for VAT in Germany. In addition, companies are required obtain a special tax certificate (also referred to as an F22 tax certificate). Which can apply for once a German Tax office, where German VAT number obtained. The certificate is neither a replacement nor an alternative to obtaining a German VAT number. It is an additional requirement for sellers on German online marketplaces.

This certificate will confirm that the online seller is up-to-date with their German VAT compliance.  All online marketplaces (such as eBay, Amazon etc.) has to collect F22 certificate. Failure to obtain these certificates. The online marketplaces (such as eBay, Amazon etc.) will automatically suspend in German account.

VAT return

Most of the Germany VAT returns are file quar­terly. But monthly returns must file, if the VAT payable for the preceding year exceeded EUR 7,500. If the VAT pay­able for the preceding year did not exceed EUR 1,000. German VAT rate is 19%. The taxable person may be exempted for preliminary filing returns. Newly established taxable persons must file monthly VAT return for the first and second year of registration. The preliminary VAT return must be submitted by the 10th day after the end of the filing period. The VAT authorities must receive payment in full by the same day.

VAT payment

The regular filing deadline is relatively short. The German VAT authorities allow a permanent one month filing and payment exten­sion on written application. However, taxable persons that must submit monthly preliminary VAT returns. Payment must pay a special prepayment equal to 1/11 of the preceding year’s VAT liability by the due date.

German VAT Refund mechanism

Import VAT refund

Import VAT (Einfuhrumsatzsteuer) is a special form of VAT, charged by Customs Authorities (Zoll). When you import goods from non-EU countries to Germany. 

Foreign companies must pay import VAT in Germany especially for imports via the ports of Hamburg and Bremen. After registering for VAT in Germany. Foreign companies can usually apply for reimbursement of paid import VAT.

VAT Refunds for EU Companies

If you are a VAT registered company in an EU Member State. You can conduct cross border transactions in another Member State. Where you are not VAT registered. Then you are eligible to recover the VAT according to Articles 170-171a VAT Directive and following the full rules laid out in Directive 2008/9/EC .

VAT Refunds for Non-EU Companies

If you are a VAT registered company established outside of the EU. You can charge VAT on business activities conducted in an EU Member State where you are not VAT registered. Then you will entitle to deduct the VAT through means of a refund from the country where the VAT was paid according to the 13th Directive (69/59/EEC).

Export refund

The VAT can refund, if the buyers purchase and export by a customer whose residence is outside the European Union. Please note that in order to qualify for tax-refund the merchandise has to be exported within three months of purchase.

Before you purchase any goods in Germany. You should inform the retailer that you intend to export the goods to the United Kingdom or other Non EU countries. With your receipt you will receive a so-called “Ausfuhrbescheinigung” (export papers) or a Tax Free Shopping Check.

Deregistration

There is no special procedure or form required to deregister. The entrepreneur informs the tax office regarding VAT deregistration. It will explain the reason for the deregistration.