VAT Registration

Buying and Selling Goods in Germany

It often happens that German clients order goods from a foreign supplier and the foreign supplier is purchasing the goods for the delivery directly in Germany.

In this case, the following sales have to be determined under the German VAT law:

  • The sale from the German supplier to the foreign company
  • The sale from the foreign company to the German client

Both sales are subject to German VAT, as the goods never left Germany. The first sale will be charged with German VAT to the foreign customer. The standard rate for goods is 19 % German VAT.

As the sale from the foreign supplier to the German client is also happening in Germany, also this sale is falling under the German VAT law and the foreign supplier has to issue an invoice with German VAT. Within the VAT registration in Germany the foreign company gets also the refund from the purchase in Germany.

In Germany there is no difference whether the client is a company (B2B) or an individual (B2C)

Summary of the most important details

  • Purchase and selling of goods which are never leaving Germany.
  • German supplier is issuing invoice with German VAT.
  • Foreign supplier selling in Germany has also to issue an invoice with German VAT and therefore has to get VAT registered in Germany.