Germany E-Commerce VAT Guide (Umsatzsteuer bei E-Commerce)
A comprehensive guide to VAT on e-commerce in Germany — the €10,000 EU distance selling threshold, the One Stop Shop (OSS) for simplified multi-country VAT reporting, marketplace liability (Plattformhaftung) introduced in 2023 for Amazon, eBay, and Wish sellers, and the §22f UStG platform reporting obligations.
E-commerce VAT in Germany has undergone major changes since 2021 with the EU VAT e-commerce package. Cross-border sellers must navigate distance selling thresholds, OSS registration, marketplace liability rules, and import VAT on goods from non-EU countries like China. For related reading, see our VAT Guide → and Small Business VAT Guide →.
Distance Selling Rules and OSS
- Distance selling threshold (Lieferschwellen): For EU-based sellers, the threshold for distance selling to German customers is €10,000 (applicable across all EU member states combined). Below €10,000: VAT is charged at the seller's country rate. Above €10,000: VAT must be charged at the German rate (19% or 7%) via OSS or local VAT registration.
- One Stop Shop (OSS): The OSS (formerly MOSS) allows EU and non-EU sellers to declare and pay VAT on distance sales to consumers in all EU member states via a single electronic portal in one EU country. Germany applies German VAT rates through the OSS. The OSS return is filed quarterly. No need for separate VAT registration in each EU country.
- Import One Stop Shop (IOSS): For goods imported from non-EU countries valued ≤€150, the IOSS simplifies VAT collection at the point of sale, allowing the importer to collect VAT from the customer at checkout. Goods below €22 no longer benefit from an import VAT exemption (abolished July 2021).
Marketplace Liability and Compliance
- Marketplace liability (Plattformhaftung, §25e UStG): Since January 2023, online marketplaces (Amazon, eBay, Wish, Etsy, etc.) are jointly liable for VAT on sales made by third-party sellers on their platforms. The platform must ensure the seller is registered for VAT in Germany and that VAT is collected. If the seller fails to register, the platform can be held liable for the unpaid VAT.
- §22f UStG reporting: Platforms must submit detailed quarterly reports to the German tax authorities showing all sales by third-party sellers, including seller identification, total sales value, number of transactions, and the VAT collected. Non-compliance can result in the platform being blocked from German market.
- Non-EU sellers: Sellers from outside the EU must obtain a German VAT ID (Umsatzsteuer-Identifikationsnummer) and appoint a VAT representative (steuerlicher Vertreter) in Germany if they have no permanent establishment there. Customs clearance of goods into Germany triggers import VAT, which can be recovered if the seller is VAT-registered.
- Compliance requirements: E-commerce sellers must issue invoices in German (or English agreed with the customer), maintain proper records for 10 years, and submit periodic VAT returns. The Finanzamt applies the Reverse-Charge-Verfahren (reverse charge) for B2B sales within the EU, meaning the buyer accounts for the VAT.