Running a business in the European Union offers great opportunities but also specific tax obligations. One of the most important topics affecting many foreign companies is VAT registration in Germany. When is it necessary? Who does it concern? And what should you be especially careful about? This article is a practical guide to help you better understand when and why your company – even if operating outside Germany – must settle accounts with the German tax authorities.

You don’t have a registered office in Germany? That doesn’t mean you don’t have to register

Many entrepreneurs mistakenly assume that if their company is registered, for example, in Poland, and they have no branch or employees in Germany, German VAT rules do not apply to them. This is far from true. German regulations clearly state that lacking a registered office in Germany does not exempt you from VAT registration if your company performs certain business activities on German territory.

If you store goods in Germany – even just in a consignment warehouse – and sell them to German customers, you are obliged to register. The same applies if you use fulfillment services via an online platform that stores and ships your goods from Germany.

Fulfillment, warehouses, and domestic sales – when does the obligation arise?

VAT registration in Germany becomes mandatory if your company:

• Uses a warehouse (e.g., Amazon FBA) located in Germany, from which goods are sent to German customers;

• Sells goods exclusively within Germany without using the OSS procedure;

• Imports goods into Germany and pays German VAT at customs clearance;

• Sends goods valued up to €150 to German recipients – special rules apply to such shipments.

In short: if any part of your company’s sales or logistics process physically “touches” German territory, German VAT concerns you.

Not only sales, but also imports and acquisitions

Another category triggering mandatory VAT registration in Germany involves import, export, and purchase of goods.

A foreign company must register for VAT in Germany if it:

• Imports goods into Germany – from both EU and non-EU countries;

• Moves goods between Germany and another EU country – for example, shipping from Poland to Germany as an intra-community supply;

• Buys and sells goods on the German market – regardless of where it is registered;

• Supplies goods itself (so-called self-supply) on German territory, e.g., from another EU warehouse.

Each of these situations triggers the registration obligation – even if sales are online and the company has no physical presence in Germany.

Online sales and the VAT registration threshold in Germany

In the age of e-commerce, online sales are one of the main reasons for VAT registration obligations in Germany. If your company sells goods online to German consumers, exceeds the VAT distance selling threshold, and does not use the simplified One Stop Shop (OSS) procedure, you must register for VAT regardless of where you operate from.

Remember that OSS allows simplification by declaring VAT in one EU country – but if you don’t use it, each country where you exceed the threshold requires separate registration.

Services and events – less obvious cases requiring registration

Not only trade and logistics can trigger VAT registration in Germany. If your company organizes training, exhibitions, or other events in Germany, receives services from German contractors subject to reverse charge, or operates as a subcontractor or supplier on site, you may also be obliged to register as a VAT taxpayer in Germany.

These less obvious situations often escape entrepreneurs’ attention, especially in service, education, or IT sectors. It is wise to consult every such case with a tax advisor experienced in the German system.

Can it be avoided? Only sometimes

Some companies voluntarily register for VAT in Germany – for example, to reclaim German VAT paid on imports. However, in most cases, registration is not optional but mandatory. Failure to register can lead to serious financial and legal consequences – including fines and interest.

If you meet any of the conditions described above, don’t delay. The sooner you register for VAT in Germany, the better you protect your company from problems.

In conclusion – what to keep in mind?

VAT registration in Germany for foreign companies is a topic that cannot be ignored. It’s not just about the tax office, but about the security of your business operations, the possibility of VAT recovery, and avoiding costly mistakes. If you sell, import, use fulfillment, ship goods from warehouses in Germany, or organize events there, your company most likely needs to be registered for VAT in Germany.

This is not a topic to “wait out.” It’s a topic to manage consciously, smartly, and preferably with the help of an experienced tax advisor.

Want to know more? In this document, we have compiled detailed key information that could not fit on our blog.