This guide is for e-commerce companies that sell online via web-stores or at marketplaces.
Web: Germany’s Tax Agency
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.