This guide is for e-commerce companies that sell online via web-stores or at marketplaces.
VAT Standard rate
19%
VAT Reduced rate
7%
See the summary of the EU VAT rates
Thresholds
From the 1st July 2021, the distance selling thresholds were withdrawn and replaced by a unified threshold of EUR10,000 for all EU members.
In other words, VAT should be charged at the VAT rate of the customer’s country of residence by companies whose annual taxable cross-border turnover is over EUR 10,000.
Deductible VAT
If goods or services were used to make taxable supplies in Germany, VAT in input invoices might be credited. Examples include:
- VAT paid at custom clearance with your EORI number
- VAT paid to German suppliers
If the company paid invoices before VAT registration it may deduct them after registration.