When you operate in Germany, you have to deal with different VAT rates and the legislation that goes with it. Now the legislation of one country is already difficult, but when you have to take into account two countries, it is useful to know when you as an entrepreneur on the German market need to have a VAT number
First of all, you need to apply for a VAT number if you are going to store or have stock in Germany, such as through Amazon FBA.
You may also need to have VAT registration when the company sells to Germany. As of July 1, 2021, new VAT regulations are in effect. When you sell goods directly from a country to an individual in another country, you may face a VAT registration requirement. There is a joint threshold amount of €10,000 turnover in sales to individuals in other countries.
Example: if in a calendar year you sell €6,000 euros to Belgium and €4,000 in Germany, you will have exceeded the threshold amount for the next sale. If you do not sign up for the One Stop Shop, you have a VAT registration requirement in each country to which the distance sales go.
You will have a personal point of contact for tax questions and doing VAT returns in Germany. You will be guided through the process, because going abroad is a big step and VAT is very complex for many. So you are supported to avoid negative consequences such as fines and lawsuits. This is because in Germany, as "Geschäftsführer" you are directly liable for mistakes in VAT. This means that in the worst case, you have to answer personally to the judge. Therefore, it is good to find the right partner to reduce the risks of negative consequences.
Did you know that we can also help you apply for aGerman phone number or return address?
Our partner helps to correctly declare the sales in the VAT returns. Amazon is a tricky platform for some to understand on an administrative level. It may happen that you have unintentionally checked an option that makes your stock not only in Germany but also in other countries. This in turn brings consequences with the VAT registration requirement in these countries. Through the Dexport partner network, your data will not just be run through an automated program to have the turnover calculated. The files will always be personally reviewed and you will be informed of any points of attention.
It is quite normal for the German tax authorities to ask questions about VAT registration obligations and VAT returns filed in Germany. Our network has direct lines of communication with the responsible officials of the Finanzamten, the local German tax authorities, throughout Germany. This allows us to engage directly with various contacts to resolve ambiguities with the Finanzamt.
Are you planning to start a German online store? If so, you can rent a German address at an affordable rate as part of a comprehensive package: Dexport Shop Launch!
Due to its proximity and size, the German e-commerce market is extremely attractive for international growth strategies. However, a larger market also means more competitors, and German consumers are particularly discerning. They prefer to shop at German online stores and place great value on a German address, legal documents, and quality seals. It is therefore important that your online store has a German look and feel.
To best address this, we have developed the all-in service, dexport Shop Launch. This includes a translation of your shop, adapted to the German market, including hosting of legal documents and a German return address for a local appearance. Extensions such as a German phone number and seal of approval are possible. In some cases, a customized approach is most effective. We advise you to make the right choices.
We take care of hosting your .de domain through a German provider. Should you already have .de hosting or choose to place your German website on a .com/the subdomain, you can of course do so.
There are several advantages to using both a .com and a .de domain for German consumers:
The AI-clone feature translates your website in a smart and efficient way. After cloning your online store, you retain the flexibility to customize each page and add SEO-optimized content, further optimizing your visibility and performance in the German market.
If you’d prefer a custom-built German online store, our consulting team is here to help. We’ll support you with detailed checklists and expert advice to create a website that’s perfectly tailored to the German e-commerce market.
Reliability is the greatest asset for German consumers (also business target group) when making purchases. Listing a German mailing address gives German consumers the feeling of having landed on a reliable and secure German website. Renting a German address is for the appearance of the German look and feel on your website, the German address, along with a German phone number is a cost-effective way to show that your business is fully geared to the German market.
You can establish a presence in Germany by renting a mailing address through us. This gives you access to a German virtual office (a German mailing or return address, with a phone number if desired). In practice, it is also often possible to open a German bank account using a German mailing address. You can list the German address on your website.
In Germany, you have to comply with EPR (Extended Producer Responsibility) registration when you put packaging on the market. This means you have to register your packaging through the LUCID platform. You also need WEEE registration if you sell electronics. Through us you can request an instructional email with all the necessary information. In addition, you will receive a discount on joining a Dual System, allowing you to comply with German packaging legislation efficiently and economically.
It is important that your business complies with all tax and legal requirements. This will help you avoid legal notices (claims) and make a trustworthy impression on German consumers. Thanks to our service and the Dexport partner network, your online store will always be legally up to date! In addition to the German terms and conditions and privacy policy, you must also include an Impressum (a type of legal notice) and a Widerrufsbelehrung (return policy) on your site.
With our legal services, you’re on solid legal ground, even when selling on German marketplaces. We ensure that your website and related documents comply with strict German consumer protection laws. Plus, for a modest monthly fee, we host your legal documents and keep them up to date at all times.
