German VAT
German VAT advice for businesses
German VAT advice, registration and ongoing compliance for German and foreign businesses – from VAT returns and invoicing to cross-border services, goods movements and e-commerce.
German VAT system
VAT depends on the actual supply and transaction flow
For German VAT purposes, the location of the business alone does not determine the tax treatment. The nature of the supply, place of supply, parties involved, supply chain and status of the customer can all be decisive.
VAT errors therefore often arise before a return is filed: through contracts, invoices, goods movements or an incorrect determination of the place of supply.
We combine the legal VAT analysis with its practical implementation in bookkeeping, invoicing, VAT advance returns, EC Sales Lists and the annual German VAT return.
Scope of services
Our German VAT services
The scope of our work depends on the business model, customer structure, supply and service flows and international connections.
01
VAT liability and registration
We review whether German VAT registration is required and assist with the German tax-registration process.
- VAT entrepreneur status
- Start of German VAT liability
- German tax number
- German VAT ID number
- Foreign businesses
02
VAT returns and ongoing compliance
Preparation and review of recurring German VAT filings.
- VAT advance returns
- Annual VAT return
- Permanent filing extension
- Special advance payment
- VAT reconciliation
03
Input VAT
Review of whether and to what extent German input VAT can be recovered on expenses and investments.
- Valid supplier invoices
- Business use
- Input VAT allocation
- Input VAT adjustments
- Investments and fixed assets
04
Invoicing
VAT review of customer invoices, credit notes and invoice corrections.
- Mandatory invoice information
- Applicable VAT rate
- VAT exemptions
- Reverse-charge wording
- Invoice corrections
05
Supplies of goods and services
Determination of the VAT place of supply and the resulting German VAT treatment.
- Supplies of goods
- Services
- B2B and B2C transactions
- Place-of-supply rules
- VAT exemptions
06
Reverse charge
Review of reverse-charge obligations for domestic and cross-border transactions.
- Services received from abroad
- Services provided to foreign businesses
- Section 13b UStG
- Invoice requirements
- VAT return reporting
07
EU goods movements
VAT treatment of supplies and acquisitions of goods within the European Union.
- Intra-Community supplies
- Intra-Community acquisitions
- VAT ID verification
- EC Sales Lists
- Supporting documentation
08
E-commerce and OSS
VAT advice for online sales, cross-border B2C transactions and European reporting schemes.
- Online sales
- Distance sales
- One-Stop Shop
- Online marketplaces
- Foreign inventory locations
09
Corrections and tax proceedings
Assistance with incorrect VAT filings, tax-authority enquiries and German VAT audits.
- Corrected VAT returns
- Invoice corrections
- Tax-authority correspondence
- Special VAT audits
- Objections
10
Imports and exports
VAT advice on movements of goods between Germany and non-EU countries.
- Export supplies
- Import VAT
- Export documentation
- Importer of record
- Coordination with customs and logistics providers
EU and international transactions
Cross-border VAT starts with the place of supply
For international transactions, the first step is to determine in which country a supply of goods or services is treated as taking place for VAT purposes. Only then can it be determined whether German VAT should be charged, reverse charge applies or a foreign VAT registration may be required.
The distinction between business customers and private consumers is particularly important. For supplies of goods, the VAT outcome can also depend on the transport route, the start and end of the shipment and the involvement of intermediaries.
Within the European Union, additional rules apply to intra-Community supplies and acquisitions, EC Sales Lists, distance sales and the One-Stop Shop.
Typical situations
When German VAT advice is particularly useful
Ongoing VAT returns, annual compliance, input VAT and new business models.
Review of German VAT registration obligations arising from supplies of goods or services in Germany.
Place of supply, reverse charge, invoicing and coordination with foreign VAT systems.
Intra-Community supplies and acquisitions, supporting evidence and EC Sales Lists.
Distance sales, marketplaces, OSS, foreign inventory and VAT registrations in multiple jurisdictions.
Correction of prior VAT filings, invoice errors and enquiries from the German tax authorities.
Invoicing and bookkeeping
VAT treatment must be implemented correctly in day-to-day accounting
A VAT analysis is only useful if the result is correctly implemented in invoicing, bookkeeping and ongoing VAT filings.
Customer invoices must reflect the correct VAT treatment. This includes the applicable VAT rate, exemptions, reverse charge, intra-Community supplies and other cross-border transactions.
Supplier invoices should also be reviewed to determine whether the legal conditions for input VAT recovery are satisfied and whether invoice corrections are required.
How we work
From VAT analysis to ongoing compliance
Business model
We review customers, suppliers, contractual relationships, types of services, goods flows and the countries involved.
VAT classification
We determine place of supply, VAT liability, tax rate, reverse charge, documentation and potential registration obligations.
Implementation
Invoicing, bookkeeping and internal processes are aligned with the correct VAT treatment.
Filing
We prepare or review VAT advance returns, annual returns, EC Sales Lists and required corrections.
Cross-Border VAT
German VAT in international business
For international services and movements of goods, the German VAT treatment must be coordinated with the rules of the other jurisdiction. Key issues include place of supply, reverse charge, registration, invoicing and supporting documentation.
Germany–Switzerland
Trade in goods and services between Germany and Switzerland can involve German VAT, Swiss VAT and, for goods movements, import VAT.
- Services between Germany and Switzerland
- Imports and exports
- Reverse charge
- German and Swiss VAT registrations
Germany–United States
Services and goods movements between Germany and the United States require coordination of German VAT with the relevant U.S. tax and business processes.
- B2B services
- U.S. businesses with German transactions
- Imports and exports
- E-commerce and online business
Insights
German VAT, business tax and cross-border matters
Additional guidance covers German business compliance, business registration and selected international tax topics.
Frequently asked questions
German VAT
When does a business have to register for VAT in Germany?
Do you prepare German VAT advance returns and annual VAT returns?
What does reverse charge mean?
When is an EC Sales List required?
Do you advise on OSS and e-commerce?
Can you correct prior German VAT filings?
Contact
Let us discuss your German VAT questions.
During the initial consultation, we review your business model, customers and suppliers, countries involved, goods and service flows, previous VAT filings and the expected scope of work.