Germany was a founding member of the European Union in 1952 and also became a member of the Eurozone in 1999, adopting the currency of the Euro.

VAT rates in Germany

The standard rate of VAT is 19%, and a reduced rate of 7% is available.

VAT registration in Germany

There is no VAT registration limit in Germany for either established or non-established businesses.

Distance sales have a limit of €100,000 for VAT registration.

The format for a VAT identification number is: DE 123456789. Every company must hold a number like this in order for accurate taxation.

VAT returns can be submitted monthly, quarterly or annually. Annual returns are required if a company submits returns monthly or quarterly.

Are there any Intrastat thresholds in Germany?

Yes. There is a limit of €500,000 for both dispatches and arrivals.

VAT recovery in Germany

  • Is VAT recovery permitted for non-established non-EU businesses?

Yes, VAT recovery is allowed for most non-EU countries.

  • Are there any non-VAT recoverable expenses?

Yes, recovery of input tax is restricted on certain items, i.e. cars and luxury goods.

Reverse charge applies to the majority of cross border services. An extended charge applies to a wider range of goods and services.

Requirements and regulations in Germany

A tax representative is not required in Germany but may be appointed if a non-established business is involved with credit supplies.

Use and enjoyment rules apply in Germany to services such as telecommunications and goods hire.

The period of VAT recovery by tax authorities has a timescale of 4 years, or 5 to 10 years in cases of fraud.

Similarly, there is a period of 4 years for VAT deductions and refunds.

Please contact us for further information about paying taxes in Germany, and a member of our team will be happy to help you.


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