Germany

Turnover threshold

35,000 EUR

Standard VAT rate

19%

Measurement period

rolling 12 month period

German VAT for digital service providers

In case of digital services, telecom services or broadcasting services supplied in a B2B context, the place of supply is the place where the recipient is established. No German VAT should be charged, and reverse charge applies unless supplier and customer are established in Germany. In case of digital services, telecom services or broadcasting services supplied in a B2C context we refer to the section on the Mini One-Stop Shop below for more information.

Mini One-Stop Shop

The optional simplification measure called the “Mini One-Stop Shop” (MOSS) with respect to digital services, telecommunication services and broadcasting services supplied in a B2C context. The supply of these services is generally considered as taking place in the Member State of the customer, not the Member State of the supplier.The MOSS scheme allows all taxable persons supplying digital services, telecommunication services or broadcasting services to nontaxable persons in EU Member States in which they do not have an establishment, to account for the VAT due on those supplies via a web portal in the Member State in which they are identified. The MOSS allows qualifying taxable persons to avoid registering in each Member State of consumption. The MOSS simplification is available both for taxable persons established in the EU and outside the EU. The MOSS generally mirrored the scheme that was in place for non-EU established suppliers of electronically supplied digital services, telecommunication services or broadcasting services supplied to final consumers. Persons already registered under the pre-existing scheme for electronically supplied digital services, telecommunication services or broadcasting services, should retain their existing individual VAT identification numbers for the purposes of the MOSS.

VAT rates

The term “taxable supplies” refers to supplies of goods and services that are liable to a rate of VAT.

The following are the two rates of VAT in Germany:

  • The standard rate at 19%
  • The reduced rate at 7%

The standard rate of VAT applies to all supplies of goods or services, unless a specific provision allows a reduced rate or exemption.

Late — registration penalties

No specific penalty applies to late VAT registration in Germany. If, as a result of the late registration, a taxable person submits VAT returns belatedly, late-filing penalties may apply. Penalties are also charged for any late payments of VAT. In addition, late filing and late payment of VAT may be regarded as a tax fraud.

Late-filing penalties may be assessed up to 10% of the VAT due, and late-payment penalties amount to 1% of the VAT due per month.

In the case of a voluntary disclosure to prevent punishment of tax fraud, a surcharge applies as follows:

  • 10% of the tax amount if the respective amount exceeds EUR 25,000 up to EUR 100,000
  • 15% if the amount exceeds EUR 100,000 up to EUR 1 million
  • 20% if the amount exceeds EUR 1 million