The German VAT Number for Foreign Companies: A Simple Guide
When foreign companies conduct business activities in Germany or provide taxable services here, they generally need to apply for a German VAT Number. This guide provides an overview of the significance and the process of obtaining a German VAT Number for foreign companies.
1)Why do foreign companies need a German VAT Number?
The German VAT Number is a unique identifier that companies require to fulfill value-added tax obligations in Germany. It enables German authorities to track VAT payments and refunds. Foreign companies need this number to carry out the following activities in Germany:
- Delivering goods and services to German customers.
- Importing goods into Germany.
- Participating in trade fairs and exhibitions.
- Providing services to German businesses.
2)Applying for a German VAT Number
The application for a German VAT Number for foreign companies is done through the Federal Central Tax Office (Bundeszentralamt für Steuern - BZSt). The application can be submitted online or by mail. Here are the basic steps:
- Registration on the BZSt online portal (if applying online).
- Completing the relevant application form, providing information about the company, business activities, and estimated turnover in Germany.
- Submitting documents for company identification, such as a certified copy of the commercial register or other forms of identification.
- Review and processing of the application by the BZSt, which may take several weeks. Upon successful review, a German VAT Number is assigned to the foreign company.
3)Using the VAT Number
After receiving the German VAT Number, the foreign company is obligated to include it on invoices and other business documents when providing taxable services. It must also submit VAT declarations in Germany and make the corresponding VAT payments.