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.
Germany is one of the largest and most regulated VAT markets in the EU. VAT registration requirements apply both to EU-based and non-EU-based businesses, and the registration process can be time-consuming. Early preparation is strongly recommended.
Here are the key points foreign businesses should be aware of when registering for VAT in Germany in 2025:
Key Points to Consider:
- Who needs to register?
Any non-established business that carries out taxable supplies in Germany — such as local sales, imports, or warehousing — must register for VAT. - No registration threshold:
For foreign businesses, VAT registration is mandatory from the first taxable transaction. There is no minimum turnover threshold. - Documentation requirements:
Typically includes business registration certificates, proof of activity in Germany, VAT certificates from the home country, and possibly translated documents. - Fiscal representative (for non-EU businesses):
A fiscal representative must be appointed, who assumes joint liability for VAT obligations in Germany. - Processing time:
VAT registration usually takes 4 to 8 weeks. Delays are common if required documents are missing or not in German. - Ongoing compliance:
Once registered, businesses are required to submit:- Monthly or quarterly VAT returns
- Annual VAT return
- EC Sales Lists (if applicable)
- Intrastat declarations (for cross-border goods movement)
- Marketplace sellers:
Businesses selling through Amazon, eBay, or other platforms must comply with specific German regulations, including obtaining a certificate under §22f UStG.
Germany offers great business opportunities but demands strict VAT compliance. With the right support, foreign companies can ensure a smooth and compliant market entry.
Need help with your VAT registration in Germany?
WW+KN, a Baker Tilly Company, is your trusted partner for VAT compliance.
Contact us at: info@vat-germany.com
