How does the electronic tax return (ELSTER) work for foreign companies?

ELSTER (Electronic tax return) is the official online portal of the German tax authorities. Foreign companies that are liable for tax in Germany must submit their tax returns electronically via ELSTER submit.

1. who must use ELSTER?

All companies that are liable for tax in Germanyincluding:

• Traders & companies based in Germany
• Foreign companies with a permanent establishment in Germany
• Foreign traders with VAT liability in Germany (e.g. Amazon FBA, dropshipping)
• Companies that employ staff in Germany

Important: Even if your company is not based in Germany but generates sales here, a VAT registration & tax return via ELSTER be necessary.

2. which tax returns can foreign companies submit via ELSTER?

Tip: If your company is located in Germany is only subject to VAT, but has no registered officeyou only have to use the Advance VAT return & annual return deliver.

3. registration with ELSTER for foreign companies

To use ELSTER, you must first register.

Step 1: Registration on ELSTER

1. Visit the ELSTER website: 🌐 www.elster.de
2. Click on "Create user account"
3. Select the option "Organization" for companies
4. Enter your Tax number & tax ID (if available) to
5. Choose a Certificate procedure (e.g. ELSTER certificate, software certificate, USB stick or card reader)
6. Receive by mail a Activation code (only for companies based in Germany)

Step 2: If you do not have a registered office in Germany

• If your company does not have a German addressyou need a German tax number from the responsible tax office.
• If you are only liable for VAT, you can apply directly to the Federal Central Tax Office (BZSt) register.

Step 3: Activate ELSTER account & fill out tax forms

• After registering, you can log in with your Certificate or login log in.
• Select the appropriate tax form and fill it out.
• Send the tax return electronic to the tax office.

Tip: If your company does not have a German address, a Tax advisor or a fiscal representative take over the registration for you.

4. advance VAT return for foreign companies in ELSTER

• If you are a you are a foreign company liable for VAT in Germanyyou must use the Advance sales tax return electronically via ELSTER.
• The Maturity depends on turnover:
  • Monthly for companies with more than € 7,500 VAT per year
  • Quarterly for companies with less than € 7,500 VAT per year
  • Annually for small businesses or companies with low turnover

How does this work in ELSTER?

1. Log in in ELSTER
2. Select the "Advance sales tax return" form
3. Make entries (sales tax, input tax, differential amount)
4. Check & send

Important: If you have the Do not submit your pre-registration in timethreaten Late payment surcharges & penalties.

5. ELSTER for foreign online merchants (e.g. Amazon FBA, eBay, Shopify)

If you are a foreign trader sells goods to German customersyou are obliged to calculate & pay German sales tax.

Options for VAT reporting:

• OSS procedure (One-Stop-Shop) → If you only sell goods from an EU country to Germany
• Direct registration in Germany → If you store goods in Germany (e.g. via Amazon FBA)

Important steps for ELSTER:
- Register your company for the German sales tax (VAT ID)
- Carry out the monthly or quarterly Advance sales tax return in ELSTER through
- Reiche the Annual VAT return electronically

Tip: If you are not familiar with ELSTER, you can use tools such as Hellotax, Taxdoo or Avalara which automatically submit your VAT returns via ELSTER.