VAT Registration in Germany

VAT or Value Added Tax in the EU is generally adopted consumption tax assessed on the added value of all goods and services. Germany builds its VAT rules based on laws, or Directives, issued from Brussels by the European Union. Read to learn some key points about VAT registration in Germany. 

Let’s overview the list of people obliged to register for VAT in the European Union. Businesses registered in EU countries apply for VAT if their 12-month turnover approaches or exceeds a certain threshold. Each country independently sets the size of the threshold value and the time required for registration as a VAT payer. In Germany, the current threshold for VAT registration for both goods and services suppliers is €22,000. There are common scenarios when VAT registration in Germany is permitted. Here they are

• Import of goods in Germany;
• The organisation of live events, conferences, etc;
• Storing goods in German warehouses as stock or resale;
• Acquisition of goods in Germany that are the subject of further resale inside the country;
• Selling of goods from Germany to other EU countries;
• Distance selling f.e Internet retails.

Vat registration in Germany usually takes up to 3 weeks, although the terms may vary. 

Need to register for VAT in another EU country? Chern&Co can assist you with VAT registration in Ireland!

Benefits of Being VAT registered

Even though VAT registration feels like an obligation, businesses can also benefit from it as well! There are three great benefits of being VAT registered that businesses can voluntarily enjoy. 

Increased Credibility 

Displaying your VAT number on all official documentation, website, and stationery will give your business a more trustworthy image. Most people are aware of the VAT threshold, so you give customers a more realistic image of what you are. 

Claim VAT Refunds

Once registered, you can demand refunds for all goods and services your business acquires. This is how your selling price remains competitive and you are able to recover from VAT on your costs. 

Reclaim VAT Refunds from the Past

You can reclaim VAT for certain items you purchased prior to registration. This requires a business to be operating for this length of time and keeping the VAT invoices and records for the period. 

VAT Tax Rate in Germany

The standard Value Added Tax rate in Germany is 19.0%. However, certain categories of traders are subject to a reduced VAT rate.  A reduced rate of 7% is applied to some foodstuffs, short-term hotel accommodations, some timber for industrial use, etc. The subject for zero taxation rate is intra-community and international transport except for road and rail and some inland waterways transport.

Looking for VAT registration outside EU? Chern & Co can help you with VAT registration in Great Britain as well!

VAT Registration in Germany with Chern & Co

The Price Of VAT Registration in Germany with Chern & Co is €400. We cooperate with our German partners who act as responsible for the submission of your VAT registration application to revenue. We stick to the same legal procedure so you do not have to worry about anything. Contact our managers to get a more extensive consultation about your particular case!