How to register for VAT in Germany?

If you run a business in Germany or sell goods or services to the German market, you may be required to register for VAT in Germany. Value-added tax in Germany is 19% or 7% depending on the type of goods or services. Registration for VAT in Germany requires the fulfillment of several conditions, such as having a German tax identification number (TIN), explaining a local business activity and completing the appropriate form, and sending it to the competent tax office. After registering for VAT in Germany, you have to regularly file tax returns and settle accounts with the tax office. The process of registering for VAT in Germany can be complicated and time-consuming, so it is worth using the help of a professional accounting office or tax advisor. In this short post, EU Tax Advice is providing basic information on VAT registration in Germany.

To register for Value Added Tax (VAT) in Germany, you will need to follow these steps:

1. Determine whether you are required to register for VAT: If you are a business owner or self-employed individual, you may be required to register for VAT in Germany. You are required to register if your annual turnover (sales revenue) exceeds €22,000, or if you are providing services or goods that are subject to VAT in Germany.

2. Gather the required information: You will need to have certain information available when registering for VAT, such as your personal and business information, including your tax number, business registration number, and bank account information.

3. Complete the registration form: The VAT registration form in Germany is called "Fragebogen zur steuerlichen Erfassung" and can be obtained from your local tax office or downloaded online. You will need to complete the form in German and provide all the required information.

4. Submit the registration form: Once you have completed the form, you should submit it to your local tax office. You can do this in person or by mail. If you are submitting the form by mail, make sure to send it by registered mail so that you have proof of receipt.

5. Wait for confirmation: After submitting your registration form, you will receive confirmation from the tax office that your application has been received. If your application is approved, you will be assigned a VAT number and registered for VAT in Germany.

6. Start charging VAT: Once you are registered for VAT, you will need to start charging VAT on your sales in Germany. You will also be able to claim back any VAT that you have paid on business expenses.

It is important to note that VAT regulations in Germany are complex and can vary depending on the nature of your business. Therefore, it is recommended that you seek professional advice from a tax consultant or accountant to ensure that you are fully compliant with all the requirements.