Do we need to register for VAT if we have a fulfilment centre in Germany?

Question

If you are holding goods in a fulfilment centre in Germany who will be selling B2B or do you still need to register for vat in Germany before you reach the threshold?

Answer

There is no threshold for foreign companies that hold goods in Germany. You will need to register for VAT as soon as you put goods in the fulfilment centre and then charge German VAT to your business customers.

This question was asked as part of our ‘VAT overseas’ webinar which we ran with SimplyVAT:

https://opentoexport.com/webinars/exporters-need-know-vat-overseas/

About SimplyVAT

SimplyVAT aims to make cross border trading compliance simple. We help ecommerce sellers from all sales channels register for VAT and comply in all 28 EU countries as well as Canada.

Our ethos is to help businesses grow and sustain their ecommerce channels by educating them about their international VAT compliance obligations.

Bitesize Chunks

The Institute’s new series of Bitesize Chunks, in partnership with Simply VAT, take you through everything you need to know about VAT overseas:

  1. Module One: International VAT
  2. Module Two: International VAT Rules for the Supply of Goods
  3. Module Three: International VAT Rules for the Supply of Services
  4. Module Four: International VAT Recovery Rules in EU Member States

Buy any of the first three modules and get Module Four FREE!

Find out more

 

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