- VAT Filing Obligations: When obtaining a VAT number in Germany, businesses must comply with filing VAT returns, including declaring sales and purchases subject to VAT, and adhering to specific deadlines for each type of transaction.
- VAT Rates: Germany applies a standard VAT rate of 19% for most goods and services, a reduced rate of 7% for essentials like food and books, and offers VAT exemptions for certain transactions such as medical services and exports.
- Transaction Declarations: Businesses must declare various transactions, including local sales, intra-Community supplies and acquisitions, imports into Germany, and exports from Germany, each with specific VAT implications.
- Filing Frequency and Deadlines: VAT returns can be filed monthly, quarterly, or annually, depending on the business’s turnover and VAT remitted the previous year. Returns are due by the 10th of the month following the reporting period, with an annual return required at the end of the financial year.
- Penalties and Document Retention: Late or non-declaration of VAT results in penalties, including fines up to 10% of VAT due (capped at EUR 25,000) and 1% monthly fines for late payment. Businesses must retain tax documents for 10 years to comply with audit requirements.
Source: eurofiscalis.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
