VAT Registration

Combination threshold / stock in germany

Many online retailers and mail order companies take advantage of the combination of mail order business and the sale of warehousing in another country.

This can result in compulsory VAT registration for these companies due to exceeding the delivery threshold to Germany and holding stock (e.g. Fulfilment by Amazon) in Germany.

Therefore the mail order company’s taxable turnover from other EU countries resulting from exceeding the delivery threshold is to be registered and taxed in the German preliminary VAT return and annual VAT return. Turnover resulting from sales from German stock as well as incoming goods to German stock are to be declared separately.

Summary of the most important details

  • Compulsory VAT registration in Germany may result from exceeding the delivery threshold and additionally from holding stock in Germany.
  • Turnover is to be invoiced with German VAT.
  • Turnover from the mail order business and the stock must be registered separately in the annual VAT return.