Amazon VAT Registration in Germany

  • March 06, 2023
  • Dushyant Sharma
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What is an Amazon VAT ?

Amazon is required to register for VAT (Value Added Tax) in Germany if it meets certain thresholds. If Amazon is selling goods to German customers and its annual turnover exceeds €100,000 or if it stores goods in Germany, it must register for VAT in Germany.

Collecting VAT post-Amazon Registration

Once Amazon is registered for VAT in Germany, it must collect and remit the VAT on all sales to German customers. The current VAT rate in Germany is 19%, although there is a reduced rate of 7% for certain products such as food, books, and newspapers.

VAT Returns submission

Amazon must also submit regular VAT returns to the German tax authorities, reporting the amount of VAT collected and paid on its sales in Germany. Failure to comply with these requirements can result in penalties and fines.

Amazon VAT Calculation Services

It's important to note that Amazon provides a service called Amazon VAT Calculation Services (VCS), which can help sellers manage their VAT obligations in Germany and other countries. VCS automates the following:

  • VAT Calculation
  • VAT Collection
  • VAT Remittance
  • VAT Registration 
  • VAT Filing

If you're an Amazon seller in Germany, it's important to understand your VAT obligations for Amazon Registration in Germany and ensure that you comply with the relevant laws and regulations. You must consult with a tax professional or use Amazon's VCS to help manage your VAT compliance.


Why must you opt for registering your Business as a Company in Germany?

Germany is dignified as the powerhouse nation of the Entire Western Europe. With most advancement in the field of Technology, in every sector, Germany has become a breeding ground for some of the most competent business startups in all of Western World. Therefore, many enthusiastic Entrepreneurs choose Germany to materialize their business idea in a functioning corporate machinery. Registering a Company in Germany with the German Business Registry can provide numerous benefits for entrepreneurs and businesses. 


Benefits of Company Registration in Germany

In this article, we have detailed some of the key advantages of Company Formation in Germany. Let us see them one by one.

German Companies limits the Liability of the Owners to their stakes

One of the most significant benefits of registering a Company in Germany in the UBO Register is the limited liability protection it provides. As a separate legal entity, a company can shield its owners from personal liability for the business's debts and obligations.

German Companies have complete access to the entire European Market

Germany is the largest economy in Europe and the fourth largest in the world. Forming a company in Germany with the German Business Registry provides access to the EU market, which has a population of over 450 million and represents a significant market for goods and services.

Germany ranks high in Ease of doing Business index

Germany is known for its efficient and streamlined business processes, making it easier for companies to set up and operate. The country has the following benefits, as per the EDB report, which makes it ideal for Business Operations:

  • Well-developed Infrastructure
  • Highly skilled Workforce
  • Stable Political Environment
  • Robust Economy

Tax Exemptions and Incentives by the German Authority

Germany has a relatively low corporate tax rate compared to other European countries for incorporating a company in the German UBO register, making it an attractive destination for businesses seeking to reduce their tax burden. Additionally, the country has a variety of tax incentives and exemptions available to businesses, particularly those involved in research and development.

Germany has strict Intellectual Property Protections laws

Germany has a robust legal system that provides strong protection for intellectual property rights, including patents, trademarks, and copyrights. This is particularly important for businesses involved in technology, innovation, and creative industries.

In Germany, it is relatively easy to get operational fundings

Germany has a well-developed financial system, including banks, venture capital firms, and other sources of funding that can help businesses raise capital to start or expand their operations.

Germany offers High-Quality Infrastructure to Businesses

Germany has a modern and extensive transportation network, including highways, railways, airports, and seaports, which makes it easy for businesses to transport goods and connect with customers and suppliers around the world.


Overall, incorporating a Business as a Company in Germany can provide numerous benefits for businesses, including limited liability protection, access to the EU market, tax benefits, and access to funding and infrastructure.




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Dushyant Sharma
Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.

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