+44 (0)1273 022400
German VAT number
BBusinesses providing taxable supplies in Germany need to apply for a German value added tax (VAT) number if they’re:
- Importing into Germany
- Buying and selling goods within Germany
- Holding live events with ticket sales
- Selling to German consumers over the internet
There is no VAT threshold for foreign businesses operating in Germany. If businesses are VAT/GST/tax registered in their home nation, the German VAT registration threshold is nil. For distance sellers — EU VAT-registered businesses selling goods or services over the internet — the VAT registration threshold is €100,000 per annum, according to the German VAT Act.
Germany’s Federal Central Tax Office (BZSt) is the tax authority that gives businesses Germany’s three different types of tax identifiers: the tax identification number (tax ID), the tax number, and the VAT identification number.
Every German citizen is given an 11-digit tax ID at birth, which helps to ensure that tax returns are matched to the right taxpayers. A tax number is given to a German citizen the first time they file a tax return or register a business, to assist with their dealings with the relevant tax office (it’s possible for individuals to have multiple tax numbers, depending on the nature and location of their business).
A VAT identification number is sometimes abbreviated as VAT ID or VAT ID no. Only businesses — domestic and foreign — can be allocated a VAT identification number. It must be stated within invoices, including those for intra-community supplies.
German VAT number format
The general format of a German VAT identification number is the German country code prefix followed by nine digits: DE 123456789.
The German tax office splits VAT numbers into two: one for reporting VAT filings and general correspondence; the second for identification for companies undertaking EU cross-border transactions (intra-community supplies).
German Number Format
| Country Code | DE |
| Format | 123456789 |
|---|---|
| Characters | 9 characters |
| Notes |
How do I get a German VAT number
Applications for a German VAT identification number must be submitted to the appropriate German tax office. The location of the tax office depends on where in the EU the applying business is based. Non-EU companies wishing to register must apply to the Berlin tax office.
The German tax offices will require details of the applicant, which typically includes extracts from the articles of association of the company. The tax office may ask additional questions if the company has a limited trading history and/or is dealing in goods susceptible to VAT fraud. Typical requests include but are not limited to:
- VAT certificate from the business’s home nation
- Company registration certificate
- Company certificate confirming the current company directors
- An extract from the company’s national trade register
- Proof of planned business in the form or contracts or invoices
Some of the requested documents may need to be translated into German by a certified translator. Once the requested documents have been submitted and verified by the German tax authority, and the registration process is complete, it could take up to 11 weeks for a business to receive its German VAT identification number.
Businesses can submit their application for a VAT identification number online; however, the process is available in German only.
Who doesn’t need a German VAT identification number?
A small range of groups and entities do not require a VAT identification number in Germany. These are:
- Freelancers and self-employed people who provide and obtain services within Germany only
- Freelancers and self-employed people who trade across borders with private individuals only
- Small business owners who use the exemption for small businesses
E-invoicing in Germany
Germany currently has B2G e-invoicing mandates in place, targeting the federal administration and the majority of German states. Mandatory B2B e-invoicing in Germany is currently expected for 2025, when taxpayers will have the obligation to receive structured e-invoices. There will be no obligation to issue structured e-invoices and no obligation to get the consent of the receiver if the invoices are sent in a paper form or non-structured formats.
From 2027, businesses with revenues exceeding €0.8 million will be required to issue structured e-invoices. From 2028, all businesses will be required to do the same. Exemptions include small-value invoices under €250, travel tickets, and invoices linked to intracommunity deliveries or exports.
Need guidance on getting a German VAT number?
If you’d like to speak to an EU VAT expert about getting a German VAT identification number, speak with Avalara today.
Need help with your German VAT compliance?
IResearching German VAT legislation should be the first step to understanding your VAT obligations in Germany. This can be a challenge, and distract you from more revenue-generating tasks. Avalara solutions can help your German expansion by automating complex and time-consuming compliance tasks, so you can focus on what you do best.
As with operating in a domestic market, diligence should be paid to VAT returns and VAT registrations by a foreign company when operating in Germany. If a business fails to file a VAT return in Germany, it could face a financial penalty of 10% of the VAT due (up to a limit of €25,000 per return) from tax authorities.
Late payment of VAT can earn a business a fine of 1% of the VAT due per month of delay. Having an invalid VAT number in Germany can also lead to fines of up to €50,000. It’s essential for businesses to check the VAT ID of new business partners and do regular qualified searches on saved VAT ID numbers.
