Exporting goods - an overview
Tax liability and documentation requirements when exporting to countries within the European Union
Applying for a Value Added Tax (VAT) identification number
Businesses wishing to export goods to other European Union Member States must apply, once only, to the Federal Central Tax Office for a VAT identification number. Together with partner authorities in other EU Member States, the Federal Central Tax Office is responsible for intra-Community VAT control procedures. German businesses can also have the Federal Central Tax Office verify the identification number of the consignee.
Exports to corporate customers are exempt from VAT
Suppliers of goods or services to corporate customers within the European Union do not include VAT on their invoices, but the customers are required to pay the VAT rate as an acquisition tax in their own country. The supplying business in Germany must prepare a recapitulative statement on its net export turnover and submit this to the Federal Central Tax Office via the ELSTER programme. On the basis of these data, the tax authority in the country of destination then checks whether the business receiving the supplies has paid the correct tax on them. The net export turnover must also be indicated in the advance VAT return. This is required of all businesses that are liable to pay VAT.
Exports to private customers are subject to VAT
Following the implementation of the VAT Digital Package in July 2021 and the introduction of the One-Stop Shop, businesses are no longer required to register for VAT in each Member State they export to. Instead, they can register in the electronic One-Stop Shop and any turnover above a uniform EU-wide turnover threshold will be communicated centrally to the Federal Central Tax Office. In Germany, the One-Stop Shop can be accessed via the Federal Central Tax Office.
VAT exemption and the small business rule
In Germany, small businesses are not required to pay VAT if their turnover does not exceed certain thresholds, as defined in the VAT Act. Small businesses - and exporters liable to VAT alike - do not need to include VAT on their invoices because the VAT must be paid by the recipient of the supply. Small businesses are not required to prepare a recapitulative statement. For more information on the small business rule, please see the Lebenslage Steuern und Finanzen section.
Documentation requirements for intra-Community supplies:
the confirmation of arrival
When goods are supplied to corporate customers in the European Union, the exporting business is not required to pay VAT. Proof of exemption from VAT must be furnished in the form of a "confirmation of arrival". This document certifies that the goods have successfully reached the consignee and contains information about the customer, destination or the signature of the consignee.
Obligation to submit a declaration for intra-Community trade statistics
When goods are moved within the European Union, businesses that are required to provide information must submit declarations for the purpose of intra-Community trade statistics to the Federal Statistical Office. Monthly declarations must be submitted by all exporting businesses whose exported goods exceeded a value of 500,000 euros in the previous year.
Customs obligations and tax exemption when exporting goods to non-European countries
Applying for a registration and identification number
The exporting business must request an EORI number from the customs authorities prior to the first export. This is a one-time application. Businesses need this EORI number to declare imports and exports to customs and to clearly identify themselves to the customs authorities. The obligation to provide an EORI number applies from the very first import or export transaction. Businesses can also request an EORI number electronically via the portal of the customs authorities. Any changes to master data are then also implemented via the portal, which has the advantage that businesses can make any necessary changes to their master data themselves. All that is needed for online registration is an ELSTER business account. Alternatively, businesses can also simply fill in a form and send it to the Central Customs Authority by post, e-mail or fax.
Standard procedure: two-step export declaration
The export procedure is a two-step process that is opened at the customs office of export with the declaration and is closed at the customs office of exit with the export of the goods. The customs office of export is the competent customs office for the exporting business. The declaration is lodged electronically using ATLAS, the automated tariff and local customs clearance system. The customs office of export checks the electronic export declaration and examines the admissibility of the export goods. Following successful examination, the customs office of export will issue an export accompanying document (EAD). The customs office of exit is the customs office where the goods must be presented before leaving European Union territory. The export accompanying document must be presented for inspection along with the registration number of the export declaration. If no inconsistencies with the data in the declaration are found, the goods are released for export. The customs office of exit runs final checks and performs a risk analysis. The two-step procedure is the standard procedure that applies. European Union customs legislation also permits simplifications under certain circumstances.
One-step export declaration for goods below value threshold
Exports do not need to be processed via the two-step procedure if the value of the goods is below the threshold of 3,000 euros. In this case, the export goods are presented directly to the customs office of exit and the export declaration can be made there. No paperwork needs to be completed for goods worth less than 1,000 euros or weighing less than 1,000 kg. The exporter can declare the goods orally to the customs office of exit by quoting the commodity code and EORI number, and providing the export licences if necessary. The customs office will then issue the exporter with a confirmation for final export.
Exemption from VAT and excise duty
Deliveries of goods to countries outside the European Union are always exempt from VAT. This applies both to exporters supplying to foreign businesses and to businesses sending their goods to private customers. In this case, it is not necessary to present or apply for a VAT identification number. The export of non-durable consumer goods to non-European countries is not subject to excise duty.
Export restrictions and prohibitions
There are restrictions or prohibitions on the export of waste. The export of chemicals and chemical products is also subject to strict controls and numerous restrictions. Businesses can apply to the Federal Office for Economic Affairs and Export Control for a restriction exemption. Military equipment is subject to export restrictions and/or prohibitions. Failure to comply with export rules can result in severe penalties. Agricultural products or certain medicines may also be subject to restrictions. For example, the export of agricultural products may require a "certificate of conformity", which documents that fruit or vegetables meet specific marketing standards. This information is indicated in the EZT electronic customs tariff system for the products concerned. The export of medicinal products for placement on the market may be subject to restrictions or prohibited if the products are unsafe, falsified or substandard as defined in the Medicinal Products Act (Arzneimittelgesetz). The customs administration also enforces strict controls on the export of rare or endangered species, which may require approval from the Federal Agency for Nature Conservation.
Export licences
The export of milk products is subject to an export tariff quota, which is specified in an associated export licence. A relevant licence must be presented to the customs office. Further details are contained in Part II of the Annex to Delegated Regulation (European Union) 2016/1237. Exporters can look up the "Ausfuhrmaßnahmen" (export measures) provided in the EZT electronic customs tariff system to check which restrictions or licences apply for the product to be exported.
Customs duties
In principle, export duties can be levied on exports of goods to countries outside the European Union. This is not the general rule, however, as it is in the interest of the Union to conduct trade and generate revenue. Nonetheless, a product that is in short supply in the European Union and on the global market may be subject to export duties to discourage its export.
Free trade agreements and preferential certificates
If the European Union has entered into an agreement on free circulation or preferential origin with the country of destination of an exported good, the recipient of the good can enjoy tariff concessions. These tariff advantages are also known as "preferences". Within the context of preferential treatment, the free circulation status and the preferential origin rule are also terms that are used. These concessions can only be claimed if the exporting business has a relevant certificate prepared, or prepares it themselves, and provides this certificate to its foreign customer. This preferential certificate can be formally requested in writing from the competent customs authority. The customs authority then verifies the free circulation or origin status of the exported goods. Non-formal preferential certificates can also be issued directly by the exporter. This self-certification is the norm for some preferential arrangements, such as in the case of trade with the Republic of Korea, Singapore, Canada, Japan and the United Kingdom. The "Warenursprung und Präferenzen online" (WuP) portal of the Central Customs Authority can be consulted for more information on the preferential regime that applies in a particular country on a specific date.
Certificate of origin as proof of the origin of a product
In international trade transactions, the certificate of origin is proof certifying the origin of a product. In this context, the origin of a product refers to the country in which the product was manufactured and processed. The certificate of origin helps the destination country to comply with government requirements, such as the enforcement of import restrictions and the monitoring of the movement of goods. The country of destination generally decides whether a certificate of origin is required or not. In Germany, the chambers of industry and commerce and the chambers of crafts are responsible for issuing the certificate of origin. The certificate of origin can be requested electronically via the "Elektronisches Ursprungszeugnis (eUZ)" application.
Declaration for the purpose of extra-Community trade statistics is submitted by the customs administration
While data for intra-Community trade statistics are collected from businesses with a reporting obligation, the figures for extra-Community trade statistics are submitted by the customs administration to the Federal Statistical Office. Extra-Community trade statistics are therefore based on data from incoming export declarations.