For eCommerce sellers, German tax means VAT — called Umsatzsteuer (USt) or Mehrwertsteuer (MwSt). The standard rate is 19% (7% for books, food, and select items). You must register for German VAT if you store goods in Germany or make local taxable sales there; if you only sell cross-border into Germany without local stock, the EU’s OSS scheme usually covers you once you pass €10,000 in EU-wide sales. Small German businesses under €25,000 can skip VAT entirely under the Kleinunternehmer rule.

Germany is Europe’s largest eCommerce market — and one of its most closely watched for VAT compliance. The rules trip up sellers constantly: two different tax numbers, a small-business exemption with new 2026 limits, and different obligations depending on whether your stock sits in a German warehouse. This guide breaks it all down clearly for online sellers in 2026.

Not tax advice:This guide explains how German eCommerce tax generally works in 2026. Rules and thresholds change and every business differs — always confirm with the Finanzamt (German tax office) or a qualified Steuerberater (tax advisor) before acting.

Understanding German VAT: Umsatzsteuer Explained

In Germany, VAT is called Umsatzsteuer (USt) in legal and tax contexts, and Mehrwertsteuer (MwSt) colloquially — they mean the same thing. It’s a consumption tax you collect from customers and pass on to the tax office (Finanzamt). Unlike US sales tax, German VAT is always included in the advertised price: if the label says €20, the customer pays €20 total, VAT included.

There are three rates to know, and for most online stores the standard rate is the one that applies:

The 19% standard rate covers the majority of physical goods and services sold online. The 7% reduced rate applies to specific categories including books, most food, newspapers, and — newly permanent from January 2026 — restaurant and catering food (though drinks stay at 19%). The 0% rate applies to exports outside the EU and intra-EU B2B supplies.

The Kleinunternehmer Rule: Germany’s Small Business Exemption

If you’re a small German-based seller, you may not have to charge VAT at all. The Kleinunternehmerregelung (§19 UStG) lets small businesses invoice without VAT — simpler bookkeeping, no advance VAT returns, and since 2024 no annual VAT return either.

The 2026 thresholds (raised in 2025) are: your prior-year revenue must be under €25,000 and your current-year revenue under €100,000. Both must be met. The big change since 2025 is a hard ceiling: cross €100,000 mid-year and you become VAT-liable immediately — from exactly that invoice — not from the next calendar year. If you only exceed the €25,000 prior-year limit (but stay under €100,000), you switch to standard VAT from 1 January of the following year.

The trade-off: as a Kleinunternehmer you can’t reclaim input VAT (Vorsteuer) on your business purchases. So if you have significant VAT-bearing costs — inventory, ads, software — the exemption may cost you more than it saves. Your invoices must show no VAT and include a note referencing §19 UStG.

Watch the hard ceiling:Under the 2025+ rules, exceeding €100,000 in the current year makes you VAT-liable from that exact sale — immediately. A fast-growing store can cross it mid-year, so track revenue closely and be ready to switch to charging VAT.

Do You Need to Register for German VAT?

This is the question that confuses most cross-border sellers. The answer hinges on two things: where your goods are stored, and who you’re selling to.

You store goods in Germany → register locally

If you hold inventory in Germany — for example in an Amazon FBA warehouse — you must have a German VAT number, full stop. This is the single most common trigger for marketplace sellers. Amazon requires a valid VAT registration number for every country where you store stock, and OSS does not replace this local registration for stock-based activity.

You sell cross-border B2C without German stock → OSS is usually enough

If you’re established in one EU country and ship B2C goods into Germany without storing stock there, the EU-wide €10,000 threshold applies. Below it, you charge your home country’s VAT. Above it, VAT is due in Germany — but you can report it centrally through Union OSS instead of registering locally. One registration, one quarterly return covering all EU destinations.

Non-EU sellers → register if you have German stock

Foreign (non-EU) businesses making taxable supplies in Germany generally face no threshold — if you store goods or make local taxable sales there, you must register. Non-EU sellers are handled by specific tax offices (US sellers, for instance, register via the Bonn tax office).

The Two Numbers You’ll Need

German VAT involves two separate identifiers, and knowing the difference saves confusion:

• Steuernummer — your domestic German tax number, issued by your local Finanzamt. Used for communication with German tax authorities and domestic reporting.
• USt-IdNr. (Umsatzsteuer-Identifikationsnummer) — your EU VAT identification number, formatted DE followed by 9 digits (e.g. DE123456789). Required for intra-EU trade and shown on cross-border invoices.

You register electronically through ELSTER (Germany’s online tax portal) using the Fragebogen zur steuerlichen Erfassung (tax registration questionnaire). The local Finanzamt issues your Steuernummer first; you then apply for the USt-IdNr. from the Federal Central Tax Office (BZSt). Be warned: for cases involving German stock, registration can take anywhere from 2.5 to 5 months, so start well before you begin selling.

Filing and Reporting Obligations

Once registered, Germany requires ongoing VAT reporting. You submit advance VAT returns (Umsatzsteuer-Voranmeldung, or UStVA) through ELSTER — monthly if your prior-year VAT exceeded €9,000, otherwise usually quarterly. Payment is generally due by the 10th day of the month after the reporting period. On top of the advance returns, you file an annual VAT return (Umsatzsteuererklärung) summarizing the year, due by 31 July of the following year (later if a tax advisor files for you).

Late filing carries real penalties — up to 10% of the VAT owed, capped at €25,000. Here’s the full compliance picture at a glance:

New for 2026: Platform Reporting (PStTG)

A change every marketplace seller should know: under the Platform Tax Transparency Law (Plattformen-Steuertransparenzgesetz, PStTG — Germany’s version of the EU’s DAC7), platforms like eBay, Etsy, Vinted, and Amazon now report seller data to the tax office annually. The first mass data exchanges become visible in 2026, and many sellers will receive letters from their Finanzamt.

The reporting kicks in once a seller crosses 30 transactions or €2,000 on a platform in a year. Importantly, PStTG creates no new tax — it simply means the Finanzamt now sees your platform income automatically and matches it against your filings. If you trade regularly with a profit motive, 2026 is the year to make sure your business is properly registered and your income documented cleanly.

Getting Invoicing Right

German VAT invoices have specific requirements. A standard VAT invoice must show your VAT ID, the correct rate (19% or 7%), and the VAT amount. Two special cases need particular wording: if you’re a Kleinunternehmer, you must not charge VAT and must add a §19 UStG note; for intra-EU B2B sales to a valid VAT number, you apply reverse charge (0% VAT) and note “Steuerschuldnerschaft des Leistungsempfängers” (reverse charge — VAT liability transferred), including both parties’ VAT IDs.

For WordPress stores selling into Germany, handling all this manually is error-prone. Platforms built for EU commerce — like StoreEngine with its EU VAT and EU Compliance features — can validate VAT numbers, apply the correct German rate automatically, display VAT-inclusive prices, and support the reverse-charge mechanism, so your invoices meet German requirements without manual rate-tracking.

The Bottom Line

German eCommerce tax comes down to a few clear decisions. Determine whether you need to register (you do if you store stock in Germany; OSS often covers pure cross-border selling). Get your two numbers via ELSTER. Charge 19% or 7% correctly, show VAT-inclusive prices, and file your advance and annual returns on time. If you’re a small German seller under €25,000, the Kleinunternehmer rule may let you skip VAT entirely — just watch the €100,000 hard ceiling.

Germany’s market is huge and worth the compliance effort. Start your registration early, keep clean records, and use software that automates rate calculation and invoicing — and German VAT becomes a manageable routine rather than a costly surprise.

💡 Quick takeaway:German VAT is 19% standard / 7% reduced. Register locally if you store goods in Germany; use OSS for pure cross-border B2C over €10,000. Small German sellers under €25,000 can use the Kleinunternehmer exemption — but cross €100,000 and you’re VAT-liable immediately.

Frequently Asked Questions