VAT Registration and Refunds

Carolin Heinzler

Tax Advisor, Head of VAT and Foreign Trade Advisory

Even though your company does not have an office or permanent establishment in Germany, you may still be obliged to get registered for VAT purposes in Germany. Did you know that the provision of a company car to an employee with residence in Germany triggers VAT registration obligations? There are several scenarios resulting in a VAT registration obligation for non-resident companies. Once a VAT registration is mandatory, you will have to comply with the German VAT rules including meeting strict deadlines, invoicing standards and reporting methods.

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VAT (value-added tax) must be paid for domestic purchases of goods and services in Germany.

VAT Refund Claim If a company does not execute taxable sales in Germany but has paid German VAT (e.g. travel expenses, hotel, rental cars, entertainment, domestic purchases of goods), this VAT paid can be reclaimed towards the Federal Central Tax Office.

VAT Registration / VAT Return If a company executes taxable sales in Germany, it is mandatory to be VAT registered at a German tax office and file VAT returns on a regularly basis. Each VAT return is a calculation of how much VAT is due from taxable sales reduced by the amount of German VAT paid on business expenses.

We are well experienced in both VAT reporting methods and can support you with filing the respective applications.

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In these cases, a VAT registration and VAT filing may be applicable:

Purchase and sale of goods in Germany
Sales of goods from a German warehouse
Involvement in chain transactions
Cross-border movements of goods
Call-Off Stocks at a customers premises in Germany
Receipt of services in Germany where VAT liability is transferred to customer (reverse charge)
Distance selling (e-shops, internet retailing, Amazon traders, Marketplace users) of goods to private consumers
Digital services (e.g. downloads) to private consumers with residence in Germany
Live events (conferences, exhibitions, seminars) held in Germany
Recharge of expenses for domestic supplies / services (e.g. hotel, entertainment, taxi)
Provision of company cars and other fringe benefits to employees with residence in Germany

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