VAT Germany Guide

Germany is Europe’s largest economy, and therefore a great place to expand your business. If you’re thinking about selling in Germany, there’s a very good chance that you’ll need to register for VAT. Read our VAT Germany guide to find out more.

Updated October 2026: This guide now reflects the 2025 small-business thresholds, the 7% rate on restaurant food from 1 January 2026, the 31 July annual return deadline, current late filing surcharge rules and the higher Intrastat thresholds.

What is the German VAT rate?

VAT (Value Added Tax) in Germany is known as Mehrwertsteuer (MWSt). The standard German VAT rate is 19% and the reduced rate is 7%. A temporary 7% rate on restaurant and catering meals, introduced in response to the covid-19 pandemic, ended on 31 December 2023. From 1 January 2026, the 7% rate applies again to food served in restaurants and by other catering services. Drinks are still taxed at the standard rate of 19%.

Registering for VAT in Germany

Since 1 January 2025, businesses established in Germany can use the small-business scheme (Kleinunternehmerregelung) and not charge VAT if their turnover was no more than €25,000 in the previous year and does not exceed €100,000 in the current year. If your turnover goes above these limits, you must charge VAT.

There is no registration threshold for non-resident businesses. If your business is not established in Germany, you must register for VAT from your first taxable supply in Germany. Businesses established in another EU country can only use the German exemption through the EU small-business scheme, which they apply for in their home country.

Following new EU-wide rules introduced on July 1, 2021, the distance selling threshold in Germany is now €10,000, the same as all other EU countries. If your annual cross-border sales to consumers in other EU countries exceed €10,000, you must charge German VAT on sales to German customers. You can declare this VAT through the One-Stop Shop (OSS) instead of registering in Germany. You must register for VAT in Germany if you store products in Germany or are signed up to an FBA program (Fulfilled-by-Amazon) that includes Germany.

German VAT registration must be done at the office allocated to the country where your business resides. For example, if your company is based in France, the correct tax office to apply at would be Offenburg, whereas if it’s located in the UK, Hanover is where you would apply for your German VAT number.

Fiscal representative in Germany

Neither EU nor non-EU companies operating in Germany are required to appoint a fiscal representative.

German VAT return filing and penalties

When and how often you need to submit your German VAT returns will depend on your VAT liability for the previous year. The tax office responsible for your VAT returns will communicate this to you. There are three options:

• Monthly: You must submit your VAT returns each month for the next year if your VAT liability was greater than €9,000 the year prior.
• Quarterly: If your VAT liability from the previous year was between €2,000 and €9,000 you must file your VAT returns every three months.‍
• Annually: If your previous year's VAT liability was €2,000 or less, the tax office may exempt you from monthly and quarterly returns, so you only file an annual return.

It may be the case that you don’t have figures from previous years because, for example, your company is new. In this scenario, you’ll be asked to estimate the annual turnover, from which the tax office will let you know when and how often to file your German VAT returns.

German VAT filings are due on the 10th of the month following the relevant tax period (monthly and quarterly) and on 31 July of the following year for annual returns. If a tax adviser prepares your annual return, the deadline is extended. VAT returns must be filed electronically via Elster.

If a German VAT return is filed late, the tax office can charge a late filing surcharge (Verspätungszuschlag) of up to €25,000. For a late annual return, the surcharge is generally 0.25% of the VAT due (after advance payments) for each month or part of a month of delay, with a minimum of €25 per month. For late monthly or quarterly returns, the amount depends on how late the return is, how often you file late and how much VAT is due. Late payments incur a surcharge of 1% of the unpaid VAT for each month or part of a month the VAT is not paid.

German Intrastat declarations

Both resident and non-resident businesses in Germany who are eligible should submit Intrastat returns. These returns need to be filed by the 10th working day after the end of the reporting month, and failure to do so could result in fines. Since January 2025, the annual threshold for filing an Intrastat return is €3 million for arrivals and €1 million for dispatches, based on the current or previous calendar year.

Reverse charge in Germany

The reverse charge mechanism shifts the responsibility for reporting and paying VAT from the supplier to the recipient of goods or services. In Germany, it applies to transactions involving EU cross-border supplies as well as specific industries. Under the reverse charge, the recipient accounts for both input and output VAT on their VAT return. The supplier does not need to be VAT-registered in Germany.