Export Documentation for VAT-Free Export Deliveries: Ensuring Compliance

For businesses exporting goods outside the European Union, the proper export documentation is essential to maintain VAT exemption for export deliveries. Under German tax law, businesses must provide sufficient evidence that goods have been exported to a third country to benefit from VAT-free export deliveries. Without the required export proof (Ausfuhrnachweis), VAT may be charged retroactively. This article outlines the necessary steps and documentation to ensure compliance and protect your business from unexpected tax liabilities.

Key points to consider:

• What is the Export Proof (Ausfuhrnachweis)?
  The export proof is an essential document that confirms the export of goods from Germany to a third country (outside the EU). This proof is required by the German tax authorities to apply VAT exemption to the export delivery.
• Types of Export Proof:
  There are two primary forms of export proof:
  1. Customs Export Documentation:
     The electronic export notice (Ausgangsvermerk) provided by German customs authorities serves as the most reliable form of proof. It confirms that the goods have left the EU customs territory and are now located in a third country.
  2. Alternative Documentation:
     In cases where no customs export documentation is available, businesses may provide other forms of proof, such as shipping documents or written confirmation from the recipient, as long as these clearly show that the goods have been exported.
• What must the Export Proof include?
  To be valid for VAT purposes, the export proof must contain:
  • The exporter’s name and address.
  • A description of the goods.
  • The third-country destination.
  • The date of export.
  • Confirmation that the goods have physically left the EU (usually via customs export documentation).
• Time Frame for Submission:
  Businesses must ensure that the export proof is available within six months of the delivery. Failing to present the proof within this timeframe can lead to VAT being charged on the transaction.
• Electronic Export Proof:
  The export process has been largely digitalized, with the ATLAS system being the primary platform for processing export declarations in Germany. The electronic “Ausgangsvermerk” generated by this system is the preferred method for providing proof to the tax authorities.
• Risks of Non-Compliance:
  Failing to provide valid export proof can result in VAT being retroactively assessed on the export delivery. This can lead to significant financial and administrative burdens, as businesses would not only need to pay the VAT but also face potential interest and penalties.
• Practical Recommendations:
  To avoid any issues, businesses should:
  • Ensure all necessary export documentation is completed accurately and submitted on time.
  • Store customs and shipping documents carefully in case of future audits.
  • Monitor the export process to ensure that the goods have officially left the EU and that the necessary export proof is obtained.

By ensuring that proper export documentation is in place, businesses can maintain VAT exemption for their export deliveries and avoid costly tax consequences.

For further questions or assistance with VAT and export matters, WW+KN, a Baker Tilly Company, is available at info@vat-germany.com.