As we all know, Germany is a country known for its rigor. Therefore, Germany also has very strict requirements and regulations when it comes to VAT value-added tax. Since the tax terms are long and complicated, let’s learn about German VAT together. Is there an exemption limit?
In fact, if you carefully study Germany’s tax policy, you will find that Germany has a VAT registration threshold, but this policy only applies to corporate residents in Germany. At the same time, from the Amazon Germany FBA warehouse All companies that ship goods need to register for German VAT before making the first sale and declare it in real time in accordance with legal requirements. Therefore, if you are a novice seller and have bad intentions about VAT, it is best to give up this idea. Once If found, sales authority will be greatly affected, and the store may even be closed directly!
1. How to calculate German VAT value-added tax?
Sales VAT = sales price/( 1+19%)*19%.
Import VAT = (declared value + freight + tariff) * 19%.
Actual tax payable = Sales VAT – Import VAT.
2. Is there an exemption limit for VAT in Germany?
First, for first-year enterprises, if their turnover is less than 17,500 euros, they do not need to register in the first year. .
Second, if the expected turnover of the enterprise is less than 50,000 euros, and the turnover in the previous year was less than 17,500 euros, it can continue to enjoy the VAT exemption.
Thirdly, if the company’s turnover in the previous year was less than 17,500 euros and operated outside the scope of VAT, it does not need to pay VAT; but if the turnover in the previous year was more than 17,500 euros, then VAT registration is required, and sales are calculated at a tax rate of 19% or 7%.
The above introduces the relevant knowledge about whether there is an exemption limit for VAT in Germany. Just like Amazon sellers from China, non-resident companies do not have a VAT registration threshold and exemption policy in Germany. Therefore, businesses that ship from Amazon’s FBA warehouse in Germany must register for German VAT before making their first sale. Once the registration is completed, you need to truthfully declare VAT on time. Even if there is no actual sales, you must provide proof of zero sales to make relevant declarations.