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Setting up a GmbH is a big step – but without a VAT number (Umsatzsteuer-Nummer), your business in Germany cannot operate properly. While most founders know that VAT registration is mandatory, what many underestimate is how long the process takes – and the consequences of delaying it.

Germany is one of the largest e-commerce markets in Europe – and a prime location for online sellers using platforms like Amazon, eBay, or Shopify. But if your company is based outside Germany and selling to customers there, you may have German VAT obligations.

If your company is based outside of Germany and doing business there, you may be required to register for VAT (Value Added Tax / Umsatzsteuer) with the German tax authorities. Failing to do so can lead to penalties, interest charges, and compliance risks.

When foreign companies enter the German market, indirect taxes quickly become a critical topic. While most businesses are familiar with VAT (Value Added Tax) requirements, Germany also applies a range of excise duties (Verbrauchsteuern) and customs regulations that may affect import, distribution, or production activities. Misjudging these rules can lead to compliance issues, delayed shipments, or unexpected costs.

WW+KN, a Baker Tilly Company, supports international clients with the fiscal registration and VAT onboarding of newly incorporated German limited liability companies (GmbHs) with foreign shareholders. This post outlines the key compliance steps and explains the practical relevance of early registration. For further inquiries, please contact info@vat-germany.de.

Foreign companies based in non-EU countries that import goods into Germany often pay import VAT (Einfuhrumsatzsteuer) at customs. In many cases, this VAT is recoverable — provided that certain conditions are met and the process is correctly followed. Understanding how to reclaim German import VAT is crucial for businesses importing goods for resale or distribution within the EU.

Germany is one of the most attractive e-commerce markets in Europe — and Amazon is a key gateway for international sellers. However, selling goods via Amazon in Germany brings specific VAT obligations, especially for non-German and non-EU businesses. To ensure compliance and avoid legal or financial risks, foreign Amazon sellers must fully understand their tax responsibilities.

Foreign companies planning to operate in Germany in 2025 may need to register for VAT (Value Added Tax) depending on their business activities. Whether you are selling goods, providing services, or using a warehouse in Germany (e.g. Amazon FBA), understanding the VAT obligations is crucial to ensure compliance and avoid financial penalties.

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.