B2C One Stop Shop Procedure Rollout across the EU

B2C sales of goods or services across the EU require filing and paying VAT to the tax authority.  Especially if you plan selling through a marketplace or website, you need to register for filing and paying VAT with the tax office to begin your sales activity.

For B2C sales up to 150 Euro, the EU has adopted a new Import One Stop Shop. This requires sellers to charge VAT, even if they are only registered abroad and have no office in the EU.

For sellers with a VAT registration in an EU member state, you may report all of your B2C sales across the EU to one tax office instead of dealing with different tax administrations on a country-by-country basis.

The threshold for paying the country-specific VAT rate was lowered to 10.000 Euro. Any B2C sales exceeding this threshold will incur VAT of the destination country. General VAT rates across the EU vary from 18 – 27%. Germany has a relatively low VAT rate at 19%. For the first 10.000 Euro in revenue, you can generally charge the low German VAT rate for each EU country you have B2C sales with.

B2B sales are not effected from the changes becoming effective on July 1, 2021. They will stay tax free as long as the other business provides you their European VAT ID and formal criteria are met.

Amazon and eBay are popular marketplaces with millions of potential customers. Since these marketplaces are liable for any of your unpaid VAT, Amazon and eBay require you to show them a certificate for VAT registration from the tax office. Otherwise, your seller account won’t be activated. This applies to other marketplaces, too.

Sometimes, B2B chain transactions require a VAT registration, too.

While it is possible to register for VAT in Germany yourself, there are a lot of pitfalls to beware of. We recommend seeking professional advice before trying to complete a tax registration yourself. 

An English tax registration form is available. However, all communication with the tax office must be in German.

For companies without any physical office in Germany, a VAT registration will take up to 5 months. 

A lot of fraud in the past is keeping the tax inspectors’ eyes peeled, so all cases are thoroughly reviewed before a tax or VAT number is issued. 

For most companies based outside of the EU, there is only one tax office in charge. This tax office is very busy, and your VAT registration will be processed in the order received. There is no way to pay to bypass the line.

Are you planning on importing goods to the EU through Germany? Your company may have to register with the tax office in Germany to clear goods through customs. If this is important to you, customs generally require you to register for an EORI number. The issuance of an EORI number is often tied to a tax registration with the tax office in Germany. We may take care of your EORI number issuance and file the necessary application for 200 Euro net of VAT.

There is a much faster way to get your business in the EU ready to make sales. By forming a German company with liability limited, you can get set up and start selling in only 4-5 weeks!

Alternatively, you can register a German branch of your foreign business. The process may take a little longer than forming a new German company.

Please contact my cooperation partner Liesegang & Partner law firm or go to LawyersGermany.com for further information on your options to form a new company or register a branch in Germany. 

Keeping your new German company compliant is not expensive. Accounting and tax filing fees for a small operation are about 290 Euro per month net of VAT.*

*Example for 130.000 Euro revenue, 25.000 Euro annual profit. Please ask for a customized quote on your expected revenue and profit by filling in the contact form on the top or bottom of this page.

The first step is to fill in the contact form on the top or bottom of this page. Then, we will immediately contact you and send you a Power of Attorney which you can fill in and return as a scan.

We have a lot of experience dealing with the tax administration in Germany and will send you a list of information we need in order to successfully complete your VAT registration in Germany. The actual cost for the registration is 300 Euro net of VAT.

I accept new clients. Please contact me. For companies formed through my cooperation partner Liesegang & Partner law firm, you'll enjoy preferred service.