Germany being an EU member state falls under the EU VAT regime. Member states must adopt EU VAT Directives into their own legislation.
Standard VAT Rate: 19%
Reduced VAT Rate: 7%
Registration Threshold Distance Selling: 100,000 €
EU VAT number format: DE999999999
Resident - There is no registration threshold
Non resident - There is no registration threshold
IC Acquisitions - EUR 12,500
In order for a non-resident business to register for VAT, it is necessary to submit the following documents and information to the competent tax office:
power of attorney, if the registration is done by a representative;
articles of association. To initiate registration a copy will be sufficient if the original is filed afterwards;
excerpt from the trade register (or something similar) to prove the legal existence. To initiate registration a copy will be sufficient if the original is filed afterwards;
confirmation of the tax authorities that the head office is registered for VAT purposes. To initiate registration a copy will be sufficient if the original is filed afterwards; and
The process of obtaining a VAT registration number normally takes between three and four weeks from the date on which the documentation is received by the tax office, assuming that there are no complications with the registration and that all information is provided to the tax office at the same time.
Detailed rules regulate reporting requirements of German transactions for Value Added Tax purposes. These include: invoice requirements, timeliness for an invoice to be issued, invoice and credit notes corrections rules, foreign currency reporting requirements and exchange rate sources, correction of previously submitted returns and accounting records that must be maintained for VAT purposes.