Distance Selling into Germany / VAT Threshold

If you are a VAT-registered business outside Germany but in another European Union (EU) country and you sell and deliver goods to customers in Germany who are not VAT-registered - and do not have to be registered - then you are 'distance selling'. For example, you might sell goods through the Internet or through a mail order catalogue. Sales you make to customers who are VAT-registered do not count as distance sales.

If it is clear that you or your company will need a German VAT registration, please contact us directly via email office@german-tax-consultants.com.

Sales into Germany
If you are a supplier from another EU country selling to customers who are not registered for VAT in Germany, then until the value of your distance sales goes over the German distance selling registration threshold - currently EUR 100,000.00 - you pay VAT in the Member State in which you are registered.

If the value of your distance sales to German customers in a calendar year from 1 January is more than EUR 100,000.00, then you must register and account for VAT in Germany as soon as they go over the threshold. You may apply to be registered for your distance sales in Germany before they reach the threshold. If your distance sales to Germany include excise goods, such as tobacco or alcohol you must register for VAT whatever their value.

You can apply to cancel your registration if the annual value of your distance sales to Germany falls to EUR 100,000.00 or less and does not include excise goods or you expect that your distance sales will be less than EUR 100,000.00 in the current year.

Sales or movements to other EU countries
Each EU country has a distance selling threshold. If you are registered for VAT in Germany and supply goods from Germany to customers in another EU country who are not VAT registered, you must charge VAT at German rates until your sales exceed the threshold for that country. Once they exceed the threshold, you must register for VAT in that country and charge their rate of VAT on the sales. You will have to record your sales for every EU country and check regularly to see if they go over that country's threshold.

You might transfer your own goods to another part of your organization, or put them in storage, in another EU country. This is treated as if you would made an acquisition there and you will have to account for VAT in that country.

Assistance by WW+KN
WW+KN can assist you by handling your German VAT registration and later by handling your German VAT affairs. Please contact us via email to office@german-tax-consultants.com.

As a member of the Tax Representative Alliance (TRA) WW+KN can also coordinate VAT registrations in other EU countries. Please ask us, if you need maybe a contact to a reliable VAT specialist in France, Spain, the UK, Poland, Italy, the Netherlands, Belgium, Malta, Cyprus, Denmark, Norway, Sweden, Latvia, Austria, Romania etc.