Vat returns in Germany

This is just based on my experience submitting DE VAT returns and definitely not professional advice.

Once registered with the German tax office for VAT in Germany you then need to submit monthly and annual returns. The monthly returns need to be submitted by the 7th of the following month (it is rather draconian time frame). Failure to submit, results in I think in 10% penalty of the VAT payable. They also charge interest at 1% per month on outstanding VAT unpaid. They will also estimate your returns if not return is submitted and charge the penalties based on this. Once returns are submitted these will be corrected.

Your correct that Elster is the platform for submitting returns. It also involves an annoying process that to register you receive an email and then you must wait for a letter with a code to authorise this. If you are using the file upload to authenticate log ins then it is essential to keep this file on the computers you need it on. One of my computers recently died and was the only computer the file was stored on.

With regard to VAT rates, standard rate is 19%, categories of goods and services charged with reduced VAT rate of 7 % are Water supplies, medical equipment for disabled persons, local public transport, books, newspapers, periodicals, hotel accommodation, social services, firewood, take away, cut flowers and plants. You may therefore find that when selling an item to Germany, now registered, it may be VATable where in the UK it may be exempt - kids clothing for example.

In terms or submission you need to send proof of sales - these can be attached to returns - my German isn’t very good so I didn’t - the German tax office contacted me and asked me for Amazon screenshots and reports to prove the total and also queried why the Amazon total to my returns varied. Generally 30% of our sales are not within Germany, with the majority going to Austria.