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.
1. When is VAT Registration Required for Foreign Companies?
Foreign companies must register for VAT in Germany in the following typical situations:
a) Sale of Goods with Domestic Delivery
- Foreign companies selling goods which are physically delivered within Germany (e.g., via own warehouse, Amazon FBA, or direct shipment from abroad) generally require a German VAT registration.
b) Intra-Community Supplies and Acquisitions
- If goods are moved between EU countries involving Germany (e.g., warehouse transfers, intra-community sales), German VAT registration may be triggered.
c) Installation and Assembly Services
- Foreign companies performing installation services in Germany may need to register, even if the goods originate from outside Germany.
d) Participation in Trade Shows or Events (with Goods)
- Selling goods directly during German trade shows may require VAT registration.
e) E-Commerce Sellers
- Distance selling within the EU via the One-Stop-Shop (OSS) might be sufficient for some businesses.
- However, sellers using fulfillment centers in Germany (e.g., Amazon FBA, Zalando Logistics) must still register for VAT locally in Germany.
2. No VAT Registration Threshold for Foreign Businesses
In contrast to German businesses, foreign companies have no VAT registration threshold. The obligation to register applies immediately from the first taxable transaction in Germany.
3. VAT Registration Procedure in 2025
Foreign companies must submit a formal VAT registration application to the responsible German tax office.
Required documents typically include:
- Company extract (commercial register or equivalent)
- VAT certificate from the home country (or proof of business activity)
- Power of attorney (if represented by a tax advisor)
- Description of planned business activities in Germany
Upon approval, the company will receive:
- German VAT identification number (USt-IdNr.)
- German tax number (Steuernummer)
Please note: Processing times in 2025 are still significant, often ranging between 6 to 12 weeks.
4. VAT Compliance Obligations After Registration
Once registered, the foreign company is obligated to:
- Issue German VAT-compliant invoices
- File advance VAT returns (monthly or quarterly depending on turnover)
- File an annual VAT return
- Submit recapitulative statements if applicable (for intra-EU transactions)
- Keep proper VAT records and documentation
Non-compliance may lead to penalties, interest, and in severe cases, criminal charges.
5. Digitalization of VAT Procedures in 2025
Germany is gradually moving towards more digital VAT procedures:
- The VAT registration process is increasingly processed via digital portals.
- E-invoicing will become mandatory for domestic B2B transactions starting in 2025, with a likely extension to foreign businesses in 2026.
Foreign companies are advised to prepare for upcoming digital VAT compliance requirements.
6. Expert Support Recommended
The VAT registration process in Germany is formal and requires precise documentation. At WW+KN, operating VAT-Germany.com, we assist international businesses with:
- VAT registration and representation before the German tax authorities
- VAT compliance (filings, invoicing, reporting)
- Communication with German tax offices
- VAT advisory regarding cross-border supply chains
In complex cases, we also work with VAT and customs law specialists from Baker Tilly.
Important Note
This article provides general information only and does not constitute legal advice. Please consult a qualified advisor for an individual assessment of your situation.
If you have any questions regarding VAT registration or VAT compliance in Germany, please feel free to contact us.
We are WW+KN, a Baker Tilly Company.
You can reach us at info@vat-germany.com.
