Businesses are required to register for VAT in Germany when the annual turnover exceeds a certain value. The registration requirements apply to both residents and non-residents, however, reduced rates (as described above), as well as a scheme for small businesses, applies to companies.The German VAT rates are: Standard rate: 19% Reduced rates: 7%Only those countries with a VAT system will require businesses to have a VAT number. A VAT number is an identification number for all VAT purposes in the country where such number was issued. Very often the VAT number will be the only tax identification number in the relevant country.
Is the VAT ID required : Among other things, the VAT number is required for the following cases: the business delivers goods elsewhere in the Community territory (intra-Community supply of goods) the business acquires goods from elsewhere in the Community territory (intra-Community acquisition)
What happens if I don’t have a VAT number
Individuals or organizations without a VAT number ordering from within the European Union will have to pay 21% VAT. We advise you to check with your administrative or financial department about having a VAT number before placing your order. If you are outside the EU, you do not need a VAT number.
Do freelancers need a VAT number Germany : VAT NUMBER (UMSATZSTEUER)
As an individual freelancing in Germany, you may be required to obtain a VAT number (in German: Umsatzsteuer or USt-IdNr) in order to charge it to your clients and pay it to your tax office (VAT return), unless your yearly revenue is lower than 17.500 EUR.
Some goods and services such as education, healthcare and financial services may be exempt from VAT. These sales are exempt from VAT, without the 'right to deduct'. This means you may not deduct the VAT you have paid on purchases related to such sales.
Self-employment and VAT
This means that, if you've met the income threshold for charging VAT, you'll need to add 19% of the total amount to each service you provide. Failing to do this may mean that you need to pay it out of pocket. The resulting additional income is then paid to the tax office.
What if I do not have a VAT number
Depending on your location, you may be requested to provide your VAT registration number under your Billing information; it is a required field. If your company does not yet have a VAT number, you could circumvent this requirement by adding a dash "-" in the VAT field.How to get a German VAT number. You get a VAT number when you register your business with the Finanzamt. If you already registered your business, request a VAT number here. A small business (Kleinunternehmer) that does not charge VAT might not have a VAT number.Non-EU businesses that sell goods located within the EU must register for VAT OSS Union scheme. Sellers that sell B2C goods (such as retail sales) that are imported from a non-EU country into the EU and that don't exceed €150 in value can register for VAT Import One Stop Shop (VAT IOSS).
Most businesses (and other persons carrying out an economic activity) need a VAT number (see Article 214 VAT Directive for full details).
Can you trade without a VAT number : VAT numbers are only given to businesses that have actually registered for VAT, so if your business isn't VAT registered, it's perfectly fine to send invoices that don't include a VAT number.
Do I need to add VAT as a freelancer : Is VAT registration mandatory for self-employed Whether you are self-employed, a partnership or a company, you must register for VAT when the previous 12 months' total sale of taxable supplies exceeds the VAT threshold. You can register voluntarily if your expected income exceeds the VAT threshold.
Do freelancers pay taxes in Germany
If your annual earnings from self-employment in Germany are more than the tax-free allowance (as of 2024: €11,604), you'll need to pay income tax (Einkommensteuer) — no matter whether you're a freelancer or run a company. Like with any income tax, the amount you'll need to pay depends on the size of your income.
In Germany
You need to register for VAT if: You store goods in the Germany; and. You sell them to consumers based in the Germany; and. Your sales exceed the German VAT threshold.Certain goods and services are exempt from VAT. This means that they are not subject to VAT and therefore, do not incur the standard 20% VAT charge. Exempt goods and services include insurance, education, and health services.
Do I need a VAT number as a freelancer : Is VAT registration mandatory for self-employed Whether you are self-employed, a partnership or a company, you must register for VAT when the previous 12 months' total sale of taxable supplies exceeds the VAT threshold. You can register voluntarily if your expected income exceeds the VAT threshold.