If no goods are sold in Germany, tax declaration is exempted. However, once a sale occurs, the tax exemption is no longer available. Although tax accountants do not advocate false reporting, the German Tax Agency is very cautious in its review and will pursue it to the end. Now, the tax bureau and Amazon are working together. The data of the e-commerce platform can be traced by the tax bureau. Customers can adopt some reasonable tax avoidance strategies, such as using VAT to pay import tax during customs clearance in Germany. This part of the import tax can be paid every month. It is used as a deduction when reporting, which is similar to the British policy. So, let’s learn about the procedures and precautions for German VAT backpayment.
1. Does German VAT need to be paid back?
It needs to be paid back.
2. German VAT back payment process.
If you apply using an old account, the tax bureau will generally require you to pay back the VAT from the old account. If no additional payment is made, a tax ID number will not be issued and the account will be closed. If you apply using a new account, the tax bureau will require proof of the relationship between the two accounts. If you cannot prove it, you will also be required to pay back taxes, otherwise the account will be closed. In Germany, the tax bureau first checks the sales history and will not issue a tax number if there is no cooperation, aiming to allow sellers to operate in compliance.
If you are a British seller and you ship to the German site, the tax bureau will ask for British tax records. If you cannot provide it, the tax ID number will not be issued. In serious cases, Amazon will close the account.
3. Information required for back payment of VAT in Germany.
1. Foreign enterprise value-added tax registration form.
2. A copy of the business license and an English translation of the business license.
3. A copy of the Chinese tax resident identity certificate.
4. eBay or Amazon account.
5. A contract or FBA contract signed with a third-party overseas warehouse company.
6. Articles of Association.
The above introduces the relevant knowledge about the procedures and precautions for VAT back payment in Germany. Currently, the tax bureau cooperates with Amazon, so the tax bureau can check the e-commerce data. When the tax bureau reviews, it will first Check the time when the turnover starts. In Germany, if you use an overseas warehouse or FBA, you must declare it even if you sell 1 euro. The annual declaration fee is tailored based on the amount of VAT paid that year, so you must declare it honestly.