Changes to VAT requirements for Germany
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Changes to VAT requirements for Germany

As per the new VAT law from 1 July 2021, all sellers who need to register for VAT in Germany will have to have a German VAT ID, and add the ID to their eBay account. This will replace the current paper certificate. Sellers who are liable for VAT registration in Germany and have not provided a valid German VAT ID will be blocked.

New VAT requirements for Germany

Due to a law change in Germany effective from 1 July 2021, there will be new requirements for marketplaces to ensure the Value Added Tax (VAT) compliance of their sellers.

This means all sellers who need to register for VAT in Germany will have to provide a German VAT ID. This will include sellers trading under the German Small Business Relief Program (Kleinunternehmerregelung).

eBay will run automated checks with the German authorities to make sure that the business seller details on eBay accounts match those that the tax authorities have on file for the German VAT ID.

Important points to consider:

Typically, a seller needs to register for German VAT if they meet one of these conditions:

  • A seller established in Germany; or
  • A seller selling goods that are warehoused in Germany; or
  • A seller who has exceeded the distance sales threshold in Germany. After 1 July 2021, the seller can opt to register for VAT under the distance sales rules or use the EU One Stop Shop (OSS) service to declare VAT charged to German customers. See further information on the EU website.

Sellers who do not have a valid German VAT ID on file and are required to do so will be blocked from selling as the VAT ID will be mandatory due to §22f UStG (German VAT Act). Learn more here.

Next steps for sellers

  • Check whether your business needs to register for German VAT. If so, register with the German tax authorities and apply for a VAT ID.
  • Make sure that your German VAT ID is added to your eBay account. Check it in the Seller Hub.
  • Make sure that the business seller details on your eBay account match those that the tax authorities have on file for your German VAT ID.
  • If you are affected, you should update those details as soon as possible to make sure that you can continue trading on eBay after July 1 2021.
  • For any further questions, please contact your tax advisor.