German VAT compliance
- What Global Trade can help you with ?

• VAT Registration: Businesses engaged in taxable transactions in Germany are generally required to register for VAT. This involves obtaining a VAT identification number from the German tax authorities. Registration can be done online or through a physical application.

• VAT Rates and Invoicing: Familiarize yourself with the different VAT rates applicable to goods and services in Germany. Ensure that you charge the correct VAT rate on your sales and issue proper VAT invoices to your customers. The invoices must contain specific information required by the German tax authorities, including your VAT identification number.

• VAT Returns and Payments: Registered businesses must file periodic VAT returns, usually on a monthly or quarterly basis, reporting their VAT transactions. The VAT return should include both output VAT (VAT charged on sales) and input VAT (VAT paid on purchases). The difference between output VAT and input VAT determines the VAT liability or refund. VAT payments are typically due with the VAT return.

• Intrastat Declarations: If your business is involved in intra-Community acquisitions or supplies with other EU member states, you may have to submit Intrastat declarations. These declarations provide statistical information on the movement of goods between EU countries and help monitor trade within the EU.

• Recordkeeping: Maintain proper records of your VAT transactions, including invoices, receipts, import/export documentation, and any other relevant documents. These records should be kept for at least ten years.

• VAT Compliance Checks: Be prepared for VAT compliance checks by the German tax authorities. They may conduct periodic audits or inspections to verify the accuracy and completeness of your VAT reporting and transactions. Ensure that your records are organized and easily accessible for such checks.

• VAT Refunds: If you are entitled to a VAT refund, follow the procedures outlined by the German tax authorities to claim the refund. This typically involves submitting a VAT refund application with supporting documentation.

• Electronic Reporting: Germany has implemented electronic reporting requirements for VAT, such as the mandatory use of the "ELSTER" system for VAT filings. Ensure that you comply with the electronic reporting obligations and use the designated platforms for VAT submissions.