This guide is for e-commerce companies that sell online via web-stores or at marketplaces.
German VAT (UStG).
VAT Standard rate
VAT Reduced rate
Certain products and services are eligible for the special reduced rate, including books, food, medical equipment for disabled people, newspapers.
€100,000 – distance sales threshold
When a company’s distant sales hit the threshold, the company must register for the VAT. A merchant may apply to be registered for VAT in Germany before they reach the threshold €0:
- If a seller uses a local warehouse (for example Amazon FBA)
- If a seller sells excise goods, such as tobacco or alcohol
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.