VAT Registration in Germany

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1 VAT Registration in Germany

2 Value-added tax is payable by German companies engaging in the sale of goods or the provision of services that are subject to this tax and, in general, all companies must register for this tax, depending on their annual turnover.

3 VAT rates
19% standard rate;
7% reduced rate;
0% reduced rate;
an exemption in case of certain transactions.

4 VAT registration in Germany takes place with the Federal Central Tax Office once the company is incorporated. The registration requirements also apply to non-resident businesses, as long as they engage in the sale or the provision of goods that are subject to this tax.

5 Registration is not mandatory for a company with an annual turnover that did not exceed EUR 17,500 in the previous calendar year and it is not estimated that it will exceed EUR 50,000 in the current calendar year.

6 Companies can benefit from input VAT refund on the value-added tax they pay inside or outside of Germany. Companies established in another Member State can apply for a refund of the VAT they have paid in Germany, under certain conditions.

7 Apart from the VAT registration requirements, companies that are subject to this tax are also asked to follow the VAT returns on a quarterly basis for most companies. Monthly preliminary returns are filed when the tax for the previous calendar year exceeded EUR 7,500.

8 VAT registration assistance
Company owners in Germany can reach out to our tax lawyers for complete information on VAT registration according to the size of their business, VAT return filing, and details about the refund procedure.

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