German VAT registration for foreign companies
Continual updates and independent advice are valuable help in the area of tax payment. WW+KN can support you in minimising sources of errors and simulating tax audits in Germany. Foreign companies which sell goods and services across EU borders do not normally have to be registered for VAT in Germany.
There are some important exceptions which are complicated by inconsistent interpretation of the rules from member state to member state. If one of these exceptions is applicable, a foreign company must register for VAT in Germany, even if the foreign company has no branch or place of business in Germany. If you know that you need a German VAT registration, you can immediately send an email to firstname.lastname@example.org and we will contact you without delay.
Examples for when German VAT registration is required
- Holding stocks in a warehouse in Germany and then selling them to German customers
- Maintaining a German consignment warehouse and selling products to German customers
- Use of the German Amazon Fulfilment Service (FBA) as a foreign Amazon trader with delivery via the German warehouse
- Buying and selling products in Germany without the goods leaving the country
- Organising live events (conferences, art, education) in Germany
Foreign companies must check their need for VAT registration
In particular, foreign Amazon traders have in recent years been obligated by the German tax authorities to register for VAT. But other foreign companies are also receiving letters from the German tax authorities with regard to VAT registration in Germany, when information reaches the tax offices about the tax audits of the foreign companies‘ German customers.
How do you register for VAT in Germany?
According to experience, the German tax offices are very critical when it comes to VAT registration of foreign companies. In view of losses in the billions every year in the European Union by way of fictitious companies and carousel fraud, increased checks are intended to ensure that VAT fraudsters will be registered for tax. These testing processes lead to longer waiting times for receiving a VAT registration, which generally takes several weeks.
How can WW+KN help with VAT registration?
The team at WW+KN has also carried out several hundred VAT registrations for foreign companies in Germany over the years. This means that WW+KN is familiar with the exact requirements and the procedure with the German authorities for the VAT registration of foreign companies. This ensures that VAT registration for clients of WW+KN will be completed as quickly as possible.
What documents does WW+KN need for registration?
- Founding certificates of the company
- Copy of company registration
- Current confirmation from the foreign tax authority about the company’s tax registration in the home country
- Presentation of planned business activities in Germany
- Power of attorney for WW+KN to be the tax representative vis-à-vis the German authorities
VAT registration is complete – what next?
WW+KN will also take over corresponding with the German tax authorities for the client in the time that follows. VAT relevant documents will be coordinated with the client. WW+KN will then prepare the preliminary VAT returns and annual returns. In doing this, WW+KN will ensure for the client that the German formal requirements are met and there will be no fines or penalties for the foreign client.