Users in Hong Kong/Mainland China can apply for a German VAT number on their own. (Applause is in order here, there are so many talented sellers on eBay!)
You will receive your VAT number 3 to 4 weeks after submitting your complete VAT application to the German tax authorities.
When you get your VAT number, you will also receive corresponding documents to help you understand the introduction, responsibilities and obligations of German VAT more comprehensively.
Germany will give you three tax numbers, which are explained below:
One is the local tax number starting with 16, the format is 16/673/12345, which is used to pay taxes; one is the EU tax number, the format is DE123456789 (9 digits), which is used on the buyer's invoice; one is the EORI number, DE123456789123456 (15 digits), which is used for customs clearance (in the case of Brexit, Germany will basically need to apply for an EORI number in the future, and the UK's EORI number will not be used in the EU)
A German Tax Certificate (F22). Pursuant to the amendments to the German VAT Act (Section 22F of the USTG), Amazon must obtain a tax certificate for sellers who are tax-registered in Germany. There are two basic tax rates in Germany: 7% and 19%. The 7% tax rate mainly applies to products such as books, newspapers, food and agricultural products. Other goods are basically subject to a 19% tax rate. Sellers on Amazon are generally subject to a 19% tax rate. There are two situations for German VAT declaration. Sellers need to make an annual declaration once a year; the annual report is due before May 31 of the following year, and monthly declarations are made once a month (quarterly declarations can be made for annual sales between EUR1,000 and EUR7,500, or the tax bureau requires sellers to make quarterly declarations within this sales amount. However, newly registered sellers need to make monthly declarations in the first two years), a total of 13 declarations.
Some common problems after applying for German VAT:
1. How to calculate German VAT?
Sales VAT = Sales price/1.19x0.19
Import VAT = (declared value + freight + tariff) x 19%
Actual tax paid = sales VAT - import VAT
2. Is there a penalty for registering VAT with an old account?
When registering VAT for an old account, you need to pay the tax first. The penalty is 11% of the tax amount (10% penalty for late declaration and 1% late payment fee for late tax payment).
Some sellers can only say that they are lucky not to receive fines.
3. When is the VAT declaration time in Germany?
German VAT declarations must be completed before the 10th of each month. For example, the VAT declaration for March must be submitted to the German tax authorities no later than April 10th. Annual declarations must be completed before May 31st of the following year.
4. German VAT fines?
If the declaration is incorrect or delayed, you may be required to pay a fine of 10% of the amount payable, up to a maximum of 25,000 euros; if payment is delayed, there is a fine of 1% of the overdue amount for each month. German VAT can be traced back 4 years, and if VAT fraud is involved it can be traced back 10 years.
5. What should I pay attention to after applying for German VAT?
After applying for VAT, you need to declare truthfully and cannot make false declarations. Even if no sales are generated, proof of zero sales must be provided as the basis for declaration.
6. Is there any exemption amount for German import tariffs?
Small parcels sent directly from China cost 22 Euros – no customs duties and VAT are required.
22 to 150 Euros only pay customs duties
Strictly speaking, goods with a value of more than 150 euros must be declared and customs duties and VAT must be paid.
7. Does Germany really have a tax-free quota?
First of all, Germany currently does not have a tax-free quota, but there is a German VAT registration threshold, but this VAT registration threshold only applies to German local resident companies. The German VAT registration threshold specifically refers to German resident companies being outside the scope of German VAT licensing if their annual turnover in the first year is less than EUR 17,500. In this case, the business is not obliged to register for VAT in the first year of operation. If their expected turnover for the second year is less than €50,000 and their turnover in the previous year was less than €17,500, they are exempt from VAT. In the third year, if their turnover in the previous year was less than €17,500, they can be outside the scope of VAT, but if it is more than €17,500, they need to register for VAT and calculate the VAT rate on the goods or services they sell at 19% or 7%. The above is only relevant for businesses resident in Germany. For non-residents (such as Amazon sellers from China), Germany has no VAT registration threshold and no so-called tax-free amount. Therefore, all businesses shipping from German Amazon FBA warehouses are obliged to register for German VAT before their first sale.
This is the end of the knowledge about German VAT in this issue. If you want to get more information about German VAT, please pay attention and we will continue to answer you~