How to sell on Amazon Germany? All about the VAT TAX German VAT Certificate

Are you already a seller on Amazon Spain and are you looking to expand your horizon a little more in other countries in Europe? Are you thinking about selling your products on Amazon Germany? Have you had your Amazon Germany account closed and don’t know why? The truth is that we could ask many more questions regarding this topic, because we know that for many sellers on Amazon things have become complicated when selling in Germany, but why does this happen? We will give you the answer to this question in this post, because we will tell you everything you need to know about the new restrictions on selling on Amazon Germany.

German VAT certificate to sell in

One of the issues that has generated the most doubts is that of and VAT, and as much as we want to stop thinking about these cumbersome issues, the truth is that we cannot avoid the issue of taxes. And now we need to be even more aware with the recent changes in the way Germany handles VAT, so there is no choice but to face the problem and find solutions if we want to expand our business into Amazon Germany.

What is the Market VAT Liability Act in Germany?

On November 9, 2018, the German parliament passed a new law that makes online marketplaces potentially liable for unpaid VAT by third parties on their e-commerce platforms. What this tells us is that, the German government has taken steps through this law to make online marketplaces responsible for the VAT tax obligations of their sellers to attack tax evasion in online commerce, and when we talk about online marketplaces, of course they are referring to platforms like Amazon.

In light of this resolution, Amazon decided to establish some policies that must be adhered to by sellers who decide to sell in Germany through the commerce platform.

VAT Obligations for Amazon Sellers in Germany

The first thing you should know is that the first criterion for VAT registration in Germany and start making tax returns in that country is that your total annual sales are greater than 100k EUR.

  • If in any calendar year your total combined sales across all online sales channels (whether on Amazon, eBay or another e-commerce platform) exceed 100,000 Euros then you will need to register for VAT.
  • If you or Amazon ship products to Germany and store them for order fulfillment, you must register for VAT in Germany.

As the new German law now makes online marketplaces responsible for ensuring that their sellers comply with these new regulations and they logically cannot take on such responsibility for unpaid taxes, Amazon established a policy that requires all sellers who want to trade on Amazon from Germany.

Amazon’s Policy for Selling in Germany

With Amazon’s new policy, if you exceed €100,000 in sales on Amazon and all sales channels, and if you store stock in Germany, you must also obtain a German VAT certificate. If you do not meet this requirement, you will not be able to sell in Germany.

If, on the other hand, you do not exceed 100 thousand Euros in annual sales in Germany including all online commerce channels and you do not store stock in that country, you can continue to sell to customers in, but remember, as long as you do not exceed the threshold of 100,000 Euros per calendar year that is established by that country.

If you’re a seller on Amazon and you don’t meet either of these two requirements for applying for a German VAT Certificate, you don’t have to worry (so far). Amazon is always changing and always renews its working mechanisms to improve the experience of both users who buy products on its platform and also for those who decide to sell on it.

It’s important to know that if you comply with the regulations of each country and comply with the laws, you won’t have to worry about Amazon closing your Germany account.

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If you have more questions about how to sell on Amazon and don’t know where to start, that’s okay, you can contact us and we will solve all your doubts and problems. You can now sell on Amazon easily and efficiently with Nozama Soluciones, we are your Amazon Agency in Spain.

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