Below, you will find the answers to the most frequently asked questions regarding the registration process in Germany. If your question is not answered here, please contact us via the contact form in your Taxdoo dashboard.
SEPA Direct Debit
If you want your due VAT for Germany to be debited directly from your account, you can do so with a SEPA mandate to the tax office responsible for you. If you inform us about this in the information request, we will send you the corresponding form of the respective tax office (unfortunately, there is no default form for all offices). Please fill in the form and send it to the address indicated on it. Please let us know as soon as this is done so that we can save this information in our system.
Previous registrations for tax purposes in Germany
Have you been registered in Germany before and, if applicable, has your tax number been paused? In general, a suspension of the tax number is possible, and a reactivation saves time and effort. So if you have already had a tax number, please inform us about it and also about the period in which it was active.
What is a shareholder?
Shareholders are not the same as legal representatives. Shareholders are generally natural and legal persons who have shares in a company. Depending on the legal form, these can be, for example, partners, investors or co-entrepreneurs.
Legal representatives, on the other hand, are the persons in a company who can legally represent it (e.g. managing directors, authorized signatories, etc.).
This information must be provided for all shareholders. Feel free to copy-paste this part several times into your reply email if there are multiple shareholders.
What are "legal entities"?
"Legal persons denote [...] the grouping of persons or things into a legally regulated organization".
Legal entities can be corporations (e.g. GmbH or AG) or partnerships (e.g. GbR, OHG or KG).
What are legal entities as non-entrepreneurs?
Legal entities as non-entrepreneurs are legal entities that regularly receive services for non-economic purposes. An example of this are legal entities under public law. Such legal entities can be identified as non-entrepreneurs by the fact that they do not have a VAT identification number.
Example: The federal government purchases FFP-2 masks from an online retailer. The federal government is a legal entity as a non-entrepreneur because it does not purchase the masks for economic purposes.
What do the following terms mean in terms of taxability in Germany?
Domestic movement of goods
Movements of goods generally include all actions in which goods are moved from one place to another. This can be movements of your own goods, e.g. when you move them to another warehouse. It also counts as an increase or decrease of your stock when you receive goods from or deliver goods to another trader.
Intra-Community deliveries from Germany
Cross-border deliveries from Germany to warehouses in other EU countries are referred to as such.
Export deliveries to third countries from Germany
Export deliveries from Germany to non-EU countries such as Great Britain, Switzerland, Heligoland, Norway, USA etc. are referred to as export deliveries.
Distance sales (e.g. delivery to private individuals)
Distance sales are cross-border sales to end customers within the EU.
What are “Werkslieferungen”?
“Werkslieferungen” are deliveries in the sense of VAT. The special feature is that it not only is an item supplied, but this item is also processed by the entrepreneur making the supply. It is important here that the entrepreneur uses materials procured by himself (main materials) when working or processing the third-party object, which are not considered secondary.
Example: A goldsmith is to produce a gold ring for a customer. For this purpose, he receives a brilliant-cut diamond from his customer, which he uses to make the ring.
Two main materials (gold, diamond) are used. The goldsmith provides a work delivery because he also provides the main material. He uses gold from his own stock. The fact that his customer also provides main material for the performance of this service is irrelevant.
What is average rate taxation?
The taxation according to average rates and the use of a fixed value of input tax gives some companies the right to choose. They can either:
- apply for taxation according to average rates and claim the input tax (or parts thereof) as fixed sum without any special proof or invoice according to a certain percentage of the net output turnover
- or they can apply the known regulations of § 15 UStG.
Not all entrepreneurs can make use of this option, but only smaller companies with an annual turnover of up to €61,356 and no existing accounting obligation.
What are input tax refund applications?
Even if your company is not based in Germany, you may still be entitled to deduct input tax. In order to be able to claim input tax, an application can be made to the Federal Central Tax Office independently of VAT returns. Please let us know if you have already submitted such an application.
Is the EORI number the same as the VAT number?
No, the EORI number is a number assigned by the authorities in the European Union. With this number, you can identify yourself to the customs authorities. You can apply for it only in the country in which you are located. The EORI number is valid for all EU countries; you do not need to apply for a separate EORI number for each EU country you are shipping to. The EORI number is especially needed when importing goods into the EU.
However, there is a special feature since the UK left the EU (Brexit): German entrepreneurs need a GB EORI number when importing into the UK.
I do not use the One-Stop-Shop, what do I have to indicate during the registration?
What exactly is meant by "electronic interfaces"?
An electronic interface can be a website, an online marketplace or an API. Here you have to specify which of these interfaces you are selling through and what your accounts are called (your Amazon store might be called something different from your company).
You can find out which interfaces you can connect to us and how to do so in our help articles.