How do I get a VAT ID as a foreign company?

In many cases, foreign companies that are economically active in Germany require a Value added tax identification number (VAT ID). This number is for intra-Community supplies and services within the EU and facilitates tax transactions.

Here you can find out Step by stephow a foreign company can obtain a VAT number in Germany can apply for.

1. when does a foreign company need a VAT ID?

A foreign company requires a German sales tax IDwhen it:

–sold goods or services to customers in Germany (B2B or B2C)
carries out intra-Community deliveries in the EU (e.g. export/import with other EU countries)
–warehousing or dropshipping in Germany (e.g. Amazon FBA)
–A permanent establishment or tax registration in Germany has
–Participates in trade fairs or events in Germany and generates sales there

Important: If the company only does business in Germany occasionally, a Tax registration without a permanent establishment.

2 Where do I apply for a VAT ID?

Competent authority:

• The Value added tax identification number (VAT ID) will be issued by Federal Central Tax Office (BZSt) awarded.
• If the company in Germany registered for tax purposes the application is made via the responsible tax office (according to company headquarters or place of business in Germany).

3. step-by-step guide: How to apply for the VAT ID no.

Step 1: Tax registration in Germany

A foreign company must first register for sales taxto obtain a VAT ID number.

-If the company has a Establishment in Germany has → Registration with the local tax office
-If the company does not have a permanent establishment, but generates taxable sales → Responsible tax office for the foreign business (e.g. Hannover-Nord tax office)

Documents required for registration:

• Application form for tax registration (questionnaire for tax registration for foreign companies)
• Founding documents and proof of business activity
• Proof of identity or extract from the commercial register of the company
• Proof of planned business activities in Germany (e.g. contracts, invoices, storage contracts)

Tip: If the company in Germany only provides services subject to VATthe tax registration can be completed with a Fiscal representative be facilitated.

Step 2: Applying for the VAT ID at the BZSt

After the company was registered with the tax office recognized for tax purposes the VAT ID number directly at the Federal Central Tax Office (BZSt) can be applied for.

Application options:
-Online application via the ELSTER portal
-Written application by post to the BZSt
–Via a tax advisor or fiscal representative

Required information:

• Tax number of the company (after tax registration in Germany)
• Name and address of the company
• Indication of the economic activity

Processing time:

• The allocation of the VAT ID number normally takes 2-6 weeks.
• If additional tests are required, it may take longer.

Tip: If the company needs to act quickly, a tax consultant can speed up the process.

4. how do I check whether the VAT ID number is valid?

If the company has already received a VAT ID number or would like to check whether a number is valid, this can be done via the EU-VIES system (VAT Information Exchange System) take place.

Checking the VAT ID no.:
-Online on the VIES website of the EU Commission
-Inquiry at the Federal Central Tax Office

Tip: If there are problems with validation, the company should contact the tax office.

5. tax obligations after receipt of the VAT number

After receiving the VAT ID number, the company must submit regular VAT returns. These include:

-Monthly or quarterly advance VAT returns
-Summary declaration (ZM) for EU trade
-Annual sales tax return

Tip: If the company has a Reverse charge regulation If the service provider can use the German VAT system, there is often no need to pay German VAT, as the recipient of the service pays the tax.

6. common mistakes and how to avoid them

Incorrect or incomplete information during registration → Fill in all documents correctly
Waiting too long with the application → Register early to avoid delays
Forgetting to submit advance VAT returns → Regular reporting is mandatory, even if no turnover was generated
Missing or invalid VAT ID number for EU transactions → Check regularly via the VIES system