This guide provides an overview of VAT in Germany, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Germany.
is Germany’s VAT rate, contributing more than a third of all tax revenue.
Foreign businesses incurring expenses in Germany? You might be eligible for a VAT refund.
Doing business in Germany? You’ll need to play by the UStG rules.
Registration is required only once your business exceeds the threshold in Germany.
Germany follows the EU’s ESS VAT rules. Businesses providing digital services (e.g., website hosting, software, digital media) must apply the VAT rate based on the consumer’s location, often utilizing the OSS system for cross-border services.
Processing times for a Germany VAT refund varies, but businesses reclaiming VAT in Germany can expect it to take anywhere from a few months to a year, depending on the claim complexity and submission accuracy.
Yes. Peppol BIS Billing 3.0 is accepted and strongly recommended. It can be used for both B2G and B2B invoicing.
Deadlines vary, but claims for VAT in Germany typically need to be submitted within 6 months to 1 year of the expense date. It is important to take note of the key deadlines.
Explore indirect tax information in these countries:
E-Invoicing in France: Updates on the B2B and B2C Mandate France is making steady progress on its digital invoicing reform, despite a shift in the official timeline. Originally planned for 2024, the mandatory B2B and B2C e-invoicing will now begin in September 2026, giving businesses more time to prepare, but also raising expectations for compliance. […]
Claiming VAT in the accounting industry Explore the reclaim opportunities available within the industry Within the accountancy industry, there is very little room for error. Every cent is accounted for, and financial visibility is a key priority. However, even within a sector that is tapped into the intricacies of value-added tax and its impact on […]
VAT vs Sales Tax: A practical business guide On the surface, VAT and sales tax are virtually the same. They’re both indirect taxes on the sale of goods or services. However, from a business and accounting perspective, there are important distinctions that affect compliance, cash flow and profit. For businesses entering new markets, understanding the […]
E -Invoicing in Egypt: A New Chapter in Digital Taxation Egypt is undergoing a digital evolution in the world of tax, and it’s reshaping the way businesses handle invoicing. At the heart of this transformation is the Egyptian Tax Authority’s (ETA) e-invoicing and e-reporting initiative, a broad-scope mandate that aims to close VAT gaps, increase […]
A pocket guide to reclaiming VAT from the UK Great – you’ve got stacks of VAT recovery opportunities waiting to be reclaimed. Except for one tiny problem: you do not know where to begin. We don’t blame you. VAT reclaim (especially from the UK) is no easy feat. Not only do you have to absolutely […]
