What is German VAT? German VAT Review

Application Requirements

Foreign companies or "non-German residents" that provide goods or services to local businesses or consumers in Germany must register for a VAT number at the local tax office. They must also comply with German VAT regulations and pay reasonable VAT at the correct commodity tax rate.

For example, the first sale shipped from Germany is declared, regardless of the site where the user places the order. For example, if a buyer purchases a product from amazon.fr, and the product is shipped from a German warehouse, then the product is subject to VAT declaration in Germany.

Reporting special circumstances

Destination country and origin country (Germany is used as an example below)

Destination country

1. All sales from EU to DE are fully taxable

2. DE TO EU In addition to having a tax number and a Pan-European program country, sales

All taxable

Country of issue

1. All sales from EU to DE are tax-free

2. DE TO EU all sales tax

special:

1. IM is handled according to the UK, and MC is handled according to France

2. CZ and PL sent to IT need to pay tax in IT

3. Remote sales need to be monitored

How to confirm the first FBA

Payment scope

1. Selling goods from a warehouse in Germany to a buyer/consignee in Germany;

2. Selling goods from warehouses in other EU countries to buyers/consignees in Germany - According to the requirements of the remote sales system, if the annual sales of the German site exceeds 100,000 euros, it is necessary to register and declare VAT;

3. Selling goods from a third place (country outside the EU) to buyers/consignees in Germany, provided that the seller or his agent is responsible for customs clearance and tax declaration of the goods sold.

Number of declarations

The German government requires Amazon sellers to submit VAT declaration forms to pay value-added tax. The frequency of submitting declaration forms depends on the VAT amount of the previous year. Usually, it is necessary to submit once a month, and the tax of the previous month must be declared before the 10th of each month. At the end of the year, the tax is summarized and adjusted, that is, 12+1 declarations.

Declaration content

The declaration includes turnover, VAT amount and import tax amount.

The VAT amount is the difference between the import tax and the tax payable or the tax to be reimbursed.

German VAT tax rate

In Germany, books, newspapers, food and agricultural products are subject to a low tax rate of 7%, while most other products and services are subject to a 19% VAT rate.

calculate:

Sales VAT = Sales price (1-1/1.19)

Actual tax paid = sales VAT (sales price (1-1/1.19)) - import VAT {(declared value + freight + tariff) * 19%)}

Information Request

1. Mainland companies:

1. Scanned copy of business license (needs to be translated), scanned copy of passport/ID card of company legal representative (ID card needs to be translated), VAT application form.

2. Expected VAT effective date

3. International remittance bank account information (must be symmetrical with the company name)

4. Company shareholder holding report (shareholder is more than one person), translation required

5. POA authorization agreement signed and sealed by the legal person (provided by J&P)

6. If you have already sold in Germany, you need to provide sales records and seller ID from Amazon, eBay, or other online platforms

7. The latest version of the UK VAT certificate

8. If you use a third-party overseas warehouse other than Amazon, you need to provide an overseas warehouse service contract

2. Hong Kong Company: All the above information is required, and NNC1 Company Registration Incorporation Form is required to prove that the legal person has been authorized

German VAT format

Country code + 9 digits, For example: DE 123456789

Application requirements

Back-office tax-specific sales report (Excel);

Monthly sales summary (Custom Summary PDF);

Import VAT tax document Steuerbescheid.

Tax payment deadline

legislation

In early August 2018, the German Federal Cabinet (Bundesregierung) approved a draft bill requiring online marketplaces to capture key VAT data and compliance of third-party sellers on their platforms from January 2019.

After September 30, 2019, marketplaces that fail to meet their new obligations (including blocking fraudulent sellers) will be secondarily liable for any unpaid VAT prior to March 1, 2019.

Registration Method

1. Self-registered sellers can contact the German Tax Office to obtain the application form. Sellers can check the contact information on the German government’s tax website (http://www.bzst.de/DE/Home/home_node.html)

2. Choose a seller handled by a third-party agent

Amazon Germany

On December 28, 2017, Amazon Germany sent a notification letter to the affected Chinese e-commerce companies, stating that it had previously informed Chinese e-commerce companies of relevant tax information and would not tolerate tax evasion by individual e-commerce companies.

In January 2018, the German tax authorities took action and the Amazon accounts of nearly 100 Chinese sellers were seized.

On December 19, 2018, Amazon sellers received an email asking them to register for German VAT. If they fail to provide a copy of the German tax certificate before March 1, 2019, sales on the German site will be closed.

On January 11, 2019, more than half a month later, Amazon sellers received another email asking them to register for German VAT, also requiring them to provide a copy of the German tax certificate before March 1, 2019, otherwise sales on the German site would be closed.

In March 2019, Amazon sent an email to sellers, extending the deadline for uploading German tax copies to April 15. Those who do not meet the VAT requirements must submit a disclaimer.