Selling to Germany 2026 — VAT Rates, Rules & Compliance

This guide covers the Germany-specific rules, rates, and compliance requirements for sellers based outside the EU shipping to German customers.

For the underlying EU mechanisms that apply across all member states, see:

• EU Overview — IOSS, OSS & Compliance — general obligations for non-EU sellers
• Selling to EU Consumers (B2C) — IOSS registration, the €150 threshold, charging VAT at checkout
• Selling to EU Businesses (B2B) — reverse charge mechanism and zero-VAT invoicing

VAT Rates in Germany (MwSt)

In Germany, VAT is known as Mehrwertsteuer (MwSt) or Umsatzsteuer (USt). When you sell to a German consumer under the IOSS scheme, you must charge the correct German MwSt rate at checkout.

Standard Rate: 19%

Applies to the vast majority of physical goods: digital services (ebooks, streaming, SaaS, software), electronics, and clothing.

Important difference from many home markets: children’s clothing and footwear are standard-rated at 19% in Germany. If you sell children’s items that are zero-rated or exempt in your home country, you must charge 19% MwSt when shipping to German consumers.

Reduced Rate: 7%

Applies to specific essential categories:

• Basic foodstuffs (excluding luxury items or restaurant meals)
• Books and newspapers (physical books, and some ebooks depending on format)
• Cultural services (concert or theatre tickets)
• Certain medical equipment

Your e-commerce platform can handle these rate overrides, but you must manually assign products to the correct German tax categories.

Selling to German Consumers (B2C)

No threshold for non-EU sellers

As a seller based outside the EU, there is no threshold for selling to German consumers. The EU’s €10,000 threshold applies only to businesses established inside the EU. From your very first sale to a German consumer, you must comply with German MwSt rules.

IOSS vs non-IOSS in Germany

If you sell physical goods under €150 to German consumers, registering for IOSS is practically mandatory for repeat business.

Without IOSS (DAP — Delivered at Place):

1. The parcel is stopped by German customs (Zoll)
2. Deutsche Post or DHL clears the goods and charges the customer 19% MwSt on delivery
3. The hidden cost: the carrier adds a customs presentation fee (Auslagenpauschale) — typically €6 for Deutsche Post/DHL
4. German consumers strongly dislike unexpected delivery fees. Return rates are high.

IOSS eliminates these carrier handling fees because VAT is cleared at the point of sale.

The €3 customs duty (from 1 July 2026)

A flat €3 customs duty per item applies to all parcels under €150 entering the EU from July 2026. Ensure your shipping labels include accurate HS codes and detailed product descriptions to prevent delays with the German Zoll.

Selling to German Businesses (B2B)

For sales to a VAT-registered German business, the standard EU B2B rules apply.

1. Validate the MwSt number. German VAT numbers start with ‘DE’ followed by 9 digits (e.g., DE123456789). Always validate on VIES before zero-rating the invoice.
2. Reverse charge. Do not charge VAT. The German business accounts for MwSt on their own German VAT return.
3. Invoice statement. Your invoice must clearly state “Reverse Charge” or in German: “Steuerschuldnerschaft des Leistungsempfängers.”

Key Compliance Requirements for Germany

10-year invoice retention (Aufbewahrungspflicht)

You are legally required to store all VAT invoices electronically and securely for 10 years. This is a German legal requirement, not just a best-practice recommendation.

Invoice requirements

German invoices must be issued within six months of delivery and must include your VAT number, the customer’s full address, a unique sequential invoice number, and the exact MwSt rate applied to each line item.

Tax-exempt territories

The island of Heligoland and the territory of Büsingen are part of Germany politically but fall outside the EU VAT area. Sales to customers in these locations are exempt from standard EU VAT.

E-invoicing (ZUGFeRD / XRechnung)

Germany is rolling out mandatory electronic B2B invoicing standards. If you do significant B2B volume with German businesses, ensure your invoicing software is compliant with these standards.

The Packaging Act (VerpackG / LUCID)

This is a major compliance requirement specific to Germany. If you ship physical goods to German consumers, you must register with the LUCID Packaging Register and pay a fee to a dual system to fund recycling of your packaging materials (boxes, padding, tape, labels). Failure to register can result in immediate fines and being banned from selling to German consumers. This applies to every seller shipping into Germany regardless of origin, and registration is required before your first shipment.

Shipping to Germany: Documentation

German customs (Zoll) are highly efficient but strictly rules-based.

• Electronic customs data (ITMATT): ensure your carrier transmits customs data electronically. A paper CN22/CN23 form alone is not sufficient.
• Accurate descriptions: use specific product descriptions with correct HS tariff codes. Avoid generic terms like “goods” or “clothing.”
• IOSS number: if using IOSS, your IOSS number must be electronically transmitted by your carrier. Writing it manually on the outside of the box is not sufficient for electronic clearance.

Related Guides

• EU Overview — IOSS, OSS & VAT Rates
• Selling to EU Consumers — IOSS Guide
• Selling to EU Businesses — Reverse Charge
• EU Selling Setup Checklist

Selling from a Specific Country?

The Germany-specific rules above apply to any international seller. Some countries have additional context for selling into Germany:

• United Kingdom — See the UK guide to selling to German customers for post-Brexit trade context and UK-specific carrier and customs notes.
• United States — guide coming soon
• Australia — guide coming soon