Is fiscal representative compulsory in Germany ?
Germany is a European Union Member State. If your business is established in another European Country appointing a tax agent or VA representative is not compulsory.
Germany yes REQUIRES a tax representative for non EU businesses.
When and how do you have to register for VAT as taxpayer?
Registration in Germany is made in two ways. The first layer is a simple identification for tax purposes : you get your TIN (Tax Indentification Number). It may be for customs needs (your business buys/sells within exempted areas or bonded warehouses, or IntraCommunity purchases. It is just as simple and limited to a Tax number.
A second layer is requested for businesses triggering « right to deduct » and this means the business is performing operations for which it has rights and duties :
– the business has to submit periodical returns to report local operations
– the business has no more access to VAT refund through transnational web portal or 13th Directive, but reports VAT on purchases directly on the form(s) (UST 1A / UST 2A for yearly return) provided by in Germany like other established companies.
This « trigger » is activated when :
– you deliver goods to individual particulars in Germany and do not / cannot opt for the Distance Sales Threshold relief.
– you move goods from Germany to another State, being third country or Member state.
In most cases your VAT number in Germany will be similar to DE123456789 (DE+9 digits).
What is the threshold for deliveries to particulars individuals in Germany ?
Distance selling as per art. 34 of VAT Directive (and taxable persons not entitled to deduct input tax and by non-taxable legal persons as per art. 3(2)(a) of the VAT Directive) :EUR 100,000
EUR 12,500 (acq. exempted pers.)
Once registered for VAT with right to deduct, which VAT should your business apply in Germany ?
Standard VAT rate in Germany is 19%, while intermediate rate is -. On the other hand, reduced rate is 7%.
Application of Article 37 and 109 to 122 of the VAT Directive in Germany : exempt; exempt with credit
Please note that we open access to a detailed table of VAT rates per goods and services in Germany :
See our section https://becompliant.tax/vat-rates-germany
What is the scope of a fiscal representative in Germany?
Fiscal representative should always diagnose your operations in Germany and establish clearly and by written :
1- What your transactions are
2- Where your transactions must be reported : territoriality
3- what are your liabilities in the reporting territory : VAT? ECSL? Intrastat?
4- what are the conditions in which you must charge or exempt VAT in your invoices
5- provide you with a reporting agenda
What form for VAT returns and when to submit in Germany ?
Your fiscal representative in Germany will have to submit periodically on your behalf.
The VAT form you are expected to submit in Germany : UST 1A / UST 2A for yearly return
In Germany, the periodicity of VAT (locally called Umsatzsteuer/Mehrwertsteuer) is as follows :
Monthly VAT returns in Germany are due 10th of month following period, always that Default
Your VAT payment is due : payment must be made by the 10th day after the expiration of the provisional return period; in case of permanent deadline extension, the date is extended by one month.
Quarterly VAT returns in Germany are due 10th of month following period, always that Choice by administration
Your VAT payment is due : in case of permanent deadline extension, the date is extended by one month.
Semesterly VAT returns in Germany are due 10th of month following.
Yearly VAT returns in Germany are due 10th of month following period, always that Choice by administration
Your VAT payment is due : 31th May after the calendar year. The final payment of the value-added tax on the basis of the summery return for the year must be made one month after the annual tax return is filed.
What are the E/ICSL a fiscal representative submits in Germany ?
The ECSL you are expected to submit in Germany : ZM (Zusammenfassende Meldung)
Your statistical declarations (Intrastat) in Germany : 10th business day of following month
What are the late registration penalties in Germany ?
– late : up to 10% of the assessed tax, maximum € 25 000 + Enforcement € 25 000
– late : 1% per month of the tax liability
Where to find official information about VAT in Germany
Germany transposed the European Directive into national regulation The legal basis for the imposition of value-added tax comprises the VAT Act as published on 21 February 2005 (Federal Law Gazette 2005 I p. 386), last amended by Article 3 of the Act of 21 December 2019 (Federal Law Gazette 2019 I p. 2886)..
The Revenue administration responsible for VAT in Germany is :
German Ministry of Finance (http://www.bundesfinanzministerium.de).
VAT and INTRASTAT compliance in Germany
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