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When setting up a GmbH (Gesellschaft mit beschränkter Haftung) in Germany, one of the critical steps for operational readiness is VAT registration (Umsatzsteuerliche Registrierung). Without proper VAT registration, your company cannot legally invoice German or EU customers, claim input VAT, or fully participate in commercial transactions.

Foreign companies supplying goods combined with installation or assembly services in Germany may face obligatory VAT registration, even if they have no permanent establishment. Understanding these rules is critical for proper VAT compliance.

The reverse charge mechanism is an important concept for VAT compliance in Germany. It shifts the responsibility for paying VAT from the supplier to the recipient of the goods or services. This system plays a critical role when foreign businesses provide services or goods in Germany.

Foreign companies conducting business activities in Germany may be subject to German Value Added Tax (VAT) obligations, even without having a permanent establishment. In 2025, VAT registration remains a key requirement for many non-German businesses, especially in sectors such as e-commerce, logistics, and B2B services. This article provides an overview of when and how foreign companies need to register for VAT in Germany and what has changed for 2025.

Online marketplaces such as Amazon, Zalando, eBay, and others have become indispensable sales channels for both domestic and foreign sellers. However, Germany imposes strict VAT compliance rules on online sellers operating through these platforms. In recent years, marketplace operators have increasingly suspended accounts or withheld VAT amounts due to non-compliance.

In 2025, Germany has introduced several important changes to its Value Added Tax (VAT) system, which affect both domestic and foreign companies conducting business in Germany. Companies involved in cross-border transactions, e-commerce, or providing services within Germany should be aware of the new rules and thresholds.

The German Federal Ministry of Finance (BMF) has released important updates regarding the VAT (Umsatzsteuer) prepayment and advance filing procedure for 2025. These updates include the publication of new forms and significant changes that businesses operating in Germany should be aware of. Below, we provide an overview of the key points.

Beginning January 1, 2025, Germany will implement mandatory electronic invoicing (e-invoicing) for business-to-business (B2B) transactions. This initiative aims to enhance efficiency, reduce errors, and improve transparency in financial transactions.

As 2025 approaches, several potential changes to VAT regulations in Germany are on the horizon. While some measures have already been approved, others remain under discussion or in legislative uncertainty due to the challenges faced by the current government. Businesses should be aware of these developments and monitor updates to ensure compliance.