VAT Registration
Germany 2026

The decision on whether VAT registration in Germany is mandatory for you depends on your business model and the physical location of the goods at the time of sale. Keep in mind that incorrectly classifying transactions, and therefore unpaid taxes in Germany, can result not only in tax arrears but also in the blocking of accounts on online marketplaces.

Registering for a German VAT number is required if a non-resident taxpayer performs certain taxable activities in that country. The most common situations include:

In 2026, the One Stop Shop system will be standard, but it's not a universal solution. You must distinguish between mail order sales and intra-German goods sales.

1. €10,000 Threshold: Please note that this limit applies to sales within the entire European Union, not just to Germany. Once this limit is reached, you have the option of registering your OSS in your country of residence or registering for VAT locally in Germany.
2. OSS limitations: The OSS procedure only covers intra-Community distance sales to consumers (B2C). It does not include:
   • B2B transactions (sales to businesses).
   • Transfers of goods between warehouses (e.g. from Poland to a warehouse in Germany).
   • Deliveries of goods that were already in Germany at the time of sale.

If your business model includes any of the above points, USt-IdNr you need

Marketplace sales without OSS: A seller offers furniture on eBay.de. He doesn't want to use OSS due to the specific logistics cost calculations in Germany. After exceeding €10,000 in sales to other EU countries, he opts for local registration in each delivery country, including Germany, to settle taxes directly there.

in Germany three identification numbers related to taxes and business: Steuernummer, USt-IdNr , and W-IdNr. While just a few years ago the first two were sufficient, today an additional, so-called economic number is automatically assigned.

Lack of knowledge about the differences between them can lead to paralysis in communication with the authorities. Therefore, we've prepared the table below as a quick guide to help you understand the differences:

Steuernummer is the local tax identification number in Germany, issued by the relevant Finanzamt for settling national taxes.

This is equivalent to local, basic identification numbers (e.g., NIP in Poland). It is assigned by the relevant local tax office (Finanzamt). Local companies register with their local tax office, corresponding to their registered office address. However, non-residents, i.e., Polish companies registering for VAT in Germany, are assigned alphabetically to a specific Finanzamt (more on this below).

• What is it used for? This is the number under which your tax file is maintained. You use it for ongoing correspondence with the office, when submitting monthly VAT returns (Umsatzsteuer-Voranmeldung), and when paying taxes directly into the office's account.
• Important note: In 2026, the Steuernummer will remain key for domestic settlements, but it must not be confused with the EU VAT number, or USt-IdNr. On invoices documenting local sales in Germany (e.g., to German private individuals), you should provide this number or the USt-IdNr.

The USt-IdNr. number is an EU VAT numberthat entitles you to make EU transactions in Germany.

If you plan to conduct intra-Community transactions (B2B), sell on platforms like Amazon or eBay, or want to use the reverse charge procedure, you'll need a USt-IdNr. This is the equivalent of the Polish NIP-UE number, starting with the prefix "DE."

• This number is issued by the Federal Tax Office (Bundeszentralamt für Steuern – BZSt), but it is a condition of first obtaining a Steuernummer from the local Tax Office. In 2026, this process will be automated if you correctly indicate your desire for one in your registration application.
• Once you have this number, your business partners will be able to verify your company in VIES. Without it, you cannot issue an invoice with a 0% VAT rate for intra-Community deliveries.
• The German Finanzamt (Tax Office) has announced that the USt-IdNr issuance process may be extended into 2026. This is due to the enormous workload on tax offices associated with implementing the W-IdNr. In this context, a properly submitted application and complete set of registration documents are particularly important.

The Wirtschafts -Identifikationsnummer (W-IdNr.) is a relatively new change in the regulations.

• Since November 2024, the BZSt has been automatically assigning this number to all entitiesthat register for VAT this year. In the background, the number is being assigned to entities that registered a VAT number in Germany before 2024. The W-IdNr. issuance process is expected to continue until the end of 2026.
• The W-IdNr is based on the USt-IdNr, but has an additional 5-digit identifier (e.g., -00001). It serves to uniquely identify the company in its relations with all German authorities (not just tax authorities).
• The W-IdNr does not replace the EU VAT number in EU transactions. In 2026, its inclusion in electronic forms (e.g., ELSTER) is still optional in many cases, but will ultimately become a communication standard.

	Steuernummer (St.-Nr.)	Umsatzsteuer-ID (USt-IdNr.)	Wirtschafts-ID (W-IdNr.)
Description	Local VAT number in Germany	VAT number in Germany	Economic/business number in Germany
Who assigns the number?	Local Finanzamt – the tax office in Germany. For Polish companies, the alphabetical order applies	BZSt – Federal Tax Office	BZSt – Federal Tax Office
Do I need to apply for it?	Yes	Yes	No, assigned ex officio upon registration Steuernummer
Application	National and local taxes (VAT, income)	EU WNT/WDT transactions	Digital company identifier, in the future it may unify the remaining numbers
Reception	Local (depending on the state/city)	International (visible in the VIES system)	National
Format	e.g. 11/123/45678	e.g. DE123456789	e.g. DE123456789-00001

The waiting time for a German VAT number is one of the most frequently raised topics by our clients. In 2026, thanks to the near-complete digitization of official processes (mandatory use of the ELSTER), procedures have been simplified somewhat.

On the other hand, as the Finanzamt informs, the formalities may be extended until the end of 2026, because the office focuses on issuing W-IdNr numbers.

In Germany, retroactive VAT registration (rückwirkende Registrierung) is permitted. Tax liability arises by operation of law when the first taxable transaction occurs in Germany, not when the VAT number is issued.

The Polish entrepreneur had been storing goods in Germany since January 2023, but he only submitted a VAT application in March 2023. The seller's account on Amazon was blocked, preventing him from selling.

The office registered the company retroactively – January 1, 2023. VAT registration in Germany took almost three months. After obtaining it, he had to submit outstanding declarations for the period January 1-June 2023, add VAT to sales to date, and pay interest.

Additionally, in Poland, his accountant had to correct Polish JPK_VAT declarations and apply for a VAT refund, which unfortunately resulted in a tax audit.

This example teaches us that when planning distance selling abroad, you need to know your tax obligations and complete the formalities well in advance.

What makes the VAT registration process in Germany compared to other EU countries is that non-residents are assigned to specific offices (more information below). The country of residence is taken into account, and in the case of Poland – alphabetical order.

Before initiating the procedure an analysis of the business, the scope of transactions, and the types of goods or services sold should be performed. Then, possible optimization paths should be assessed – as different regulations will apply to construction companies than to e-commerce companies. Language barriers and ELSTER authentication methods may also pose obstacles.

If you feel you can't handle your needs and formalities in Germany on your own, contact usand we'll do it for you free of charge. We'll also gladly take on the rest of the responsibilities and handle the formalities on your behalf.

To register for VAT in Germany in 2026, you must register on the ELSTER tax portal. All documents are submitted electronically, including the VAT number application.

In 2026, there will be no more paper applications – everything will be handled through the ELSTER system. Paper registration is only permitted in exceptional cases (so-called unbillige Härte).

Below you'll find a list of documents required to complete the ELSTER registration form. Documents must be translated into German – is not required.

Document type	Document name	Explanation
Identity confirmation	Copy of ID card or passport	A document belonging to persons authorized to represent the company
	Company agreement, statute, notarial deed	Documents must be translated into German
	Extract from the commercial register	KRS extract for companies, CEIDG for sole proprietorships. Documents must be current and translated into German (no older than 3-6 months)
	VAT certificate issued in the country of residence	The document is issued by the tax office in the country where you are based; the document must be translated into German
	Business plan, description of services provided or goods delivered, description of the flow of goods	Explanation of planned transactions in Germany (in German)
	Foreign currency bank account details	A current bank document confirming the bank details of the foreign currency account (not older than 3-6 months)
	For example, Amazon FBA Agreement, Copy of signed contracts or official orders from customers, Warehouse space lease agreement, Proof of advance payment and pro forma invoices	Evidence of planned taxable activity in Germany
Registration application	Fragebogen zur steuerlichen Erfassung form	A document based on an official template, signed by a person authorized to represent the company
Power of attorney	Vollmacht	Only if you are registering for VAT with the help of a tax representative or attorney. The power of attorney must be in German and signed by the person authorized to represent the company.
SEPA Mandate	SEPA-Lastschriftmandat	Only if you want VAT to be automatically deducted from your account after submitting your periodic declaration

In justified cases, an application for VAT registration in Germany can be submitted on paper, but this must be justified. This form of registration will also unnecessarily prolong the registration process. By far the fastest way to obtain a VAT number in Germany is to entrust the process to a tax representative.

A tax representative in Germany is a person who formally deals with your tax obligations:

– Settling VAT in Germany and submitting returns periodic VAT
– Submitting returns ZM and annual VAT
– Support in the correct payment of taxes in Germany
– Intermediation in tax audits between the taxpayer and the Finanzamt.

There is no obligation for EU companies to appoint a tax representative in Germany. However, their support can prove invaluable when it comes to completing formalities, language barriers, and understanding the regulations.

In the case of Poland, the German tax office went a step further and, due to the huge number of entities (especially in the e-commerce and construction industries), divided the services for Polish companies between four specialized offices.

The first letter of your surname (in the case of sole proprietorships) or the first letter of the company name (in the case of companies and partnerships) determines which of them you will be assigned to.

First letter– surnames for JDG, company names for companies	Competent tax office – Finanzamt	German state
A-G	Finanzamt Hameln-Holzminden	Niedersachsen (Lower Saxony)
H – L	Finanzamt Oranienburg	Brandenburg
M – R	Finanzamt Cottbus	Brandenburg
S – Z (including Polish final letters: Ś, Ź, Ż)	Finanzamt Nördlingen mit Außenstelle Donauwörth	Bayern (Bavaria)

Once you receive a VAT number in Germany, you essentially have the same rights and obligations as German companies.  On the one hand, you benefit from lower VAT rates (than in Poland, for example), but on the other, you must comply with German regulations. So, let's discuss the most important obligations:

1. Applying German VAT rates on sales invoices
   The taxpayer is obliged to correctly apply the VAT rates applicable in Germany:
   – 19% – standard rate
   – 7% – reduced rate

Current VAT rates across the EU can be found here: EU VAT Rates 2026 – Table

2. Filing periodic VAT returns in Germany. VAT returns are filed monthly or quarterly, depending on reported/declared turnover.
3. Filing an EU VAT return (EU VAT return) if your company conducts EU transactions. EU VAT returns are not required if you have not conducted any such transactions in a given period.
4. Filing an annual VAT return in Germany as a summary of all transactions made in the previous tax year.  
5. Submitting INTRASTAT declarations when exceeding German statistical thresholds (3M arrivals, 1M exports). All INTRASTAT thresholds can be found here: INTRASTAT 2026 Thresholds – Table
6. Payment of VAT due, as stated in the submitted returns. VAT must be paid to the account of the relevant tax office in Germany that registered your company for VAT (as per the table above). Since October 2025, German authorities have been paying particular attention to the accuracy of bank transfer data – it must include full tax office details and a correct transfer reference. Otherwise, the office will not be able to properly match the payment, and as a result, late payment interest until the matter is resolved.

VAT registration in Germany will be fully electronic in 2026. This significantly simplifies the process for non-resident companies outside of Germany that want to do business there. The most important things to remember:

• Three identification numbers in Germany: In 2026, you'll be using the Steuernummer (local), the USt-IdNr (EU), and the new W-IdNr (business). Each serves a different purpose.
• ELSTER is mandatory: Forget about paper applications. The entire process, from registration to monthly declarations, is handled through the Mein ELSTER portal.
• Alphabetical jurisdiction: Your case will be sent to one of four offices (Hameln, Oranienburg, Cottbus or Nördlingen) depending on the first letter of your company name (if you run a company) or your surname (if you run a sole proprietorship).
• E-invoicing is a market necessity: Even if you, as a non-resident, are not strictly obliged to issue e-invoices, your German B2B partners may expect them in XML format (XRechnung/ZUGFeRD). It's worth verifying this with them directly.
• Backdating saves business, but comes at a cost: You can get a backdated number to unblock your Amazon account, but be prepared to pay interest and potential late payment penalties.

If you're unsure whether your company needs to register for VAT in Germany , or if you'd like to navigate the entire process without the risk of errors, delays, or penalties, contact us. We'll analyze your situation free of charge and determine your tax obligations in Germany.  

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