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.
In this article, we explain when and why foreign companies need a German VAT number – and how the registration process works.
1. When Is VAT Registration in Germany Required?
Foreign businesses must register for VAT in Germany if they:
- Sell goods that are stored and shipped from within Germany
- Organize local events or exhibitions and charge German VAT
- Provide taxable services to private individuals in Germany
- Import goods into Germany from outside the EU
- Make intra-community acquisitions or supplies involving Germany
- Use fulfillment networks (e.g., Amazon FBA) with inventory in German warehouses
Even if you are not established in Germany, VAT registration may still be required based on your activities.
2. No Threshold for Non-Resident Businesses
Unlike German companies, non-resident businesses have no VAT threshold. The obligation to register arises from the first taxable transaction – for example, storing goods in a German warehouse or delivering products from Germany to local customers.
3. Examples of Common Scenarios
- E-commerce sellers using Amazon FBA Germany
- Software or SaaS providers billing German individuals
- Non-EU companies importing goods via German customs
- Event organizers or trainers hosting in-person workshops in Germany
Each of these cases may trigger a mandatory VAT registration.
4. What Is a German VAT Number?
The German VAT number (Umsatzsteuer-Identifikationsnummer) starts with DE followed by 9 digits. It is required to:
- Issue compliant invoices
- File VAT returns and EC Sales Lists
- Reclaim input VAT
- Communicate with the German tax office
VAT registration must be done before you start taxable activities in Germany.
5. How to Register for VAT in Germany
The process typically includes:
- Submitting Form USt 1 TJ (application for non-resident VAT registration)
- Providing proof of commercial activity (invoices, contracts, order confirmations)
- Appointing a fiscal representative, if required (for some non-EU businesses)
- Waiting for tax office approval and allocation of the VAT number
Processing times can range from 2 to 6 weeks, depending on the tax office and completeness of documents.
6. Ongoing Obligations After Registration
Once registered, your company must:
- File periodic VAT returns (monthly, quarterly, or annually)
- Submit EC Sales Lists (for B2B intra-EU supplies)
- Keep proper German VAT-compliant invoices
- Maintain records for 10 years (digitally acceptable)
Failure to meet deadlines can lead to late fees and audits.
Conclusion
If your company is trading with or within Germany, it’s essential to assess whether VAT registration is legally required. Acting proactively not only avoids compliance risks—but also ensures smooth trade operations and accurate invoicing.
Need help registering for VAT in Germany or managing your VAT filings? Contact us at info@vat-germany.com
