Do US Sellers Need to Charge VAT in Germany?

Short answer: usually yes, and from your first sale. Germany has no VAT threshold for businesses based outside the EU, so there is no German version of the $100,000 economic nexus rule you know from US sales tax. What you actually have to do depends on how the goods reach Germany and who pays the VAT when they arrive.

This guide is for US businesses selling physical products to customers in Germany: Shopify and WooCommerce stores, Etsy and Amazon sellers, and brands shipping from a US warehouse or a German one. Selling software or subscriptions instead? See Does Your US SaaS Need to Charge VAT in Germany?

Do you need to collect German VAT? Find your situation

How you sell to Germany	Who pays the 19% German VAT	What you need
Ship from the US, order €150 or less, with IOSS	You, collected at checkout	An IOSS number (through an EU intermediary) and a monthly IOSS return
Ship from the US, order €150 or less, without IOSS	Your customer, at the door	Nothing to register. The customer pays VAT, duty and a carrier fee on delivery
Ship from the US, order over €150, customer pays import costs (DAP)	Your customer, at the door	Nothing to register
Ship from the US, order over €150, you pay import costs (DDP)	You, as the importer	A German VAT number and an EORI number
Stock held in Germany (Amazon FBA, a German 3PL)	You (or Amazon, on Amazon sales)	German VAT registration before your first sale
Sold on Amazon, Etsy or eBay, shipped from the US, €150 or less	The marketplace	Nothing for VAT on those orders
Sold to a German business	The business, at import	Nothing. The business pays import VAT and reclaims it

The €150 figure is the value of the goods in the parcel, excluding shipping and VAT. It decides whether IOSS is available, not whether VAT is due. VAT is due on every parcel, whatever its value.

Why there’s no “nexus” threshold for US sellers

If you’re used to US sales tax, the EU works differently in three ways that catch American sellers out:

The threshold for non-EU sellers is zero. The €10,000 threshold you’ll see quoted everywhere only applies to businesses established inside the EU selling to other EU countries. You’re not one of them.
Germany’s small business exemption doesn’t apply to you. The Kleinunternehmerregelung lets small German businesses (under €25,000 in turnover) skip VAT. It’s only available to businesses established in Germany or, through an EU-wide scheme, elsewhere in the EU.
The US–Germany tax treaty doesn’t cover VAT. Tax treaties cover income tax. VAT is a tax on the German consumer’s purchase, so where you’re based doesn’t change it.

The good news: you usually don’t need to register in Germany at all. Either the customer pays at the border, a marketplace collects for you, or you use the EU’s IOSS scheme. Registering in Germany only becomes necessary when you import the goods yourself or store stock there.

German VAT rates for physical goods

Germany calls VAT Mehrwertsteuer (MwSt) or Umsatzsteuer (USt).

Rate	Applies to
19% (standard)	Most goods: clothing (including children’s clothing), shoes, electronics, cosmetics, jewelry, homeware, toys, supplements, candles, art prints
7% (reduced)	Printed books and newspapers, most food (most drinks are 19%), some medical aids, plants and flowers

If you sell into several EU countries, each has its own rates. The Germany country guide covers Germany’s rates and quirks in more detail.

Shipping from the US: orders of €150 or less

This is where most small US stores sit. You have two choices: collect VAT yourself through IOSS, or let the customer pay it on delivery.

Option 1: Register for IOSS and charge VAT at checkout

The Import One-Stop Shop (IOSS) lets you charge the customer’s VAT at checkout and pay it to the EU in one monthly return. The parcel then clears German customs (the Zoll) without any charge to the customer.

You can’t register directly. US businesses must appoint an EU-based IOSS intermediary, who registers you and files your monthly returns. Fees typically run from a few hundred to a few thousand euros a year. See our IOSS intermediary comparison.
One registration covers all 27 EU countries. You charge each customer their own country’s rate: 19% in Germany, 20% in France, 21% in the Netherlands, and so on.
Your carrier must send your IOSS number electronically with the customs data. Writing it on the box isn’t enough.

Worked example: a US candle shop using IOSS

A Vermont candle maker sells a candle set to a customer in Munich. The checkout shows €57.00 including VAT (€45 for the candles and €12 shipping).

German VAT included in the price: €57.00 × 19 ÷ 119 = €9.10
Your revenue before VAT: €47.90
You report €9.10 on that month’s IOSS return, and your intermediary pays it.
On top of VAT, the EU charges a flat €3 customs duty per item line on parcels under €150 (see the 2026 duty change below). Most IOSS sellers pay it through their carrier and build it into the price or shipping.

The customer pays €57.00 at checkout and nothing on delivery.

Option 2: Ship DAP and let the customer pay

You can skip IOSS entirely. You charge no VAT at checkout, and German customs collects it from the customer before delivery. Legally this is fine. Commercially it hurts.

Worked example: the same order without IOSS

You charge the Munich customer €47.90, with no VAT. When the parcel arrives:

Customs duty: €3.00
Import VAT: (€47.90 + €3.00) × 19% = €9.67
Carrier handling fee (Deutsche Post / DHL): around €6.00

The customer is asked for about €18.67 more before they can take the parcel, a 39% surprise on a €47.90 order. Many refuse delivery, and you pay for the return shipping. German shoppers are used to seeing final prices, so if you sell to Germany regularly, IOSS usually pays for itself.

What changed in July 2026: the €3 customs duty

Until 30 June 2026, parcels worth €150 or less entered the EU duty-free. Since 1 July 2026, a flat €3 customs duty applies to each item line in a low-value parcel sent from outside the EU to an EU consumer, whether or not you use IOSS. It’s an interim measure, due to run until the EU’s new customs data hub replaces it, currently planned for 1 July 2028.

Items with the same tariff code can share one line. A parcel with three identical candles is one line (€3). A parcel with a candle, a mug and a T-shirt is three lines (€9).
The duty is not refunded if the customer returns the item.
Accurate HS codes and product descriptions matter more than ever, because they decide how many lines your parcel has.

Shipping from the US: orders over €150

IOSS isn’t available above €150. The goods are imported normally, with import VAT and the product’s standard EU customs duty rate.

Ship DAP (Delivered at Place) and the customer pays import VAT, duty and the carrier’s fee on delivery. You don’t register. As with small parcels, expect some refused deliveries.

Ship DDP (Delivered Duty Paid) and you become the importer. Because the sale to the customer then happens inside Germany, you need a German VAT registration and an EORI number (the EU’s customs ID for importers).

Worked example: a €400 espresso grinder, shipped DDP

A US coffee equipment brand sells a grinder to a customer in Hamburg for €400 before VAT.

You charge the customer €400 + 19% VAT = €476.00
At import, you (through your carrier) pay German import VAT on the customs value plus duty and shipping
On your German VAT return, you declare €76.00 of output VAT and reclaim the import VAT you paid
The customer pays €476.00 and nothing at the door

DDP gives the best customer experience, but it adds a German VAT registration with monthly or quarterly returns. Most US brands only take this route once Germany is a serious market.

Holding stock in Germany: Amazon FBA and 3PLs

If your goods are stored in Germany before they’re sold, every sale is a German domestic sale. You must register for German VAT before your first sale. There’s no threshold.

This covers:

Amazon FBA with inventory in German fulfilment centers, including Pan-European FBA, which can move your stock into Poland and the Czech Republic too, each of which triggers its own VAT registration
A German 3PL or warehouse you ship stock to in bulk
Consignment stock held by a German retailer for you

What German VAT registration involves for a US company:

Your tax office is fixed. Companies based in the US are registered by the Finanzamt Bonn-Innenstadt, which handles all US businesses. Expect registration to take several weeks, sometimes a few months.
No fiscal representative is required. Germany doesn’t force non-EU businesses to appoint one, though many use a German tax adviser.
Returns are filed electronically through ELSTER: advance returns (Umsatzsteuer-Voranmeldung), usually monthly or quarterly, due by the 10th of the following month, plus an annual return.
Import VAT can be reclaimed on your German return when you ship stock into Germany as the importer.

On Amazon specifically: since July 2021, Amazon is treated as the seller for VAT purposes when a non-EU business sells stock that’s already in the EU to EU consumers. Amazon collects and pays the VAT on those orders. You still need a German VAT number, though, both to import the stock and because Amazon requires your steuerliche Erfassungsbescheinigung (German tax registration certificate) to keep selling. If you’ve dealt with the US version of this problem, our Amazon FBA physical nexus guide covers how FBA inventory triggers US state sales tax.

Selling through marketplaces and platforms

Amazon, Etsy and eBay are treated as the seller for VAT on orders of €150 or less shipped into the EU from outside it. They charge German VAT at checkout and use their own IOSS number. You don’t collect or file anything for those orders. Above €150, the customer usually pays import VAT on delivery.

Shopify, WooCommerce, BigCommerce and your own site are not marketplaces. You are the seller. Shopify can charge EU VAT at checkout once you add your IOSS number, but it doesn’t register you or file your returns. Your intermediary or tax provider does that.

If you sell on Etsy and your own store, the two are treated separately: Etsy handles its orders, and your store’s orders are your responsibility.

Selling to German businesses (B2B)

Physical goods sold to a German business are imported the normal way. The business, as importer, pays import VAT and reclaims it on its own German VAT return. You don’t charge German VAT and don’t register.

Ask for the customer’s German VAT number (USt-IdNr, in the format DE123456789) and check it with our free EU VAT number checker. It confirms you’re dealing with a real business and gives you a record for your files. IOSS is for consumer sales only, so don’t use it for business orders.

Germany’s non-VAT registrations

VAT gets the attention, but these German and EU rules trip up more US sellers, because marketplaces and customs check them:

Packaging Act (VerpackG) and the LUCID register. If you ship packaged goods to German consumers, you must register in the LUCID packaging register and license your packaging with a recycling scheme (a duales System) before your first shipment. This applies to US sellers shipping from the US too. Small shops often pay well under €100 a year. Marketplaces must delist sellers who aren’t registered.
Electronics (ElektroG / WEEE). Selling electrical or electronic products to German consumers requires registration with stiftung ear. Sellers based outside Germany must appoint an authorized representative in Germany.
Batteries (BattDG). Products containing batteries need a separate battery registration.
EU product safety (GPSR). Since December 2024, consumer products sold into the EU need an EU-based responsible person named on the product or packaging.

What happens if you ignore German VAT

Customs: parcels without IOSS are held until the customer pays. Unregistered DDP shipments get stuck.
Marketplaces: Amazon and others suspend listings without a valid German VAT registration or LUCID number.
The tax office: if you should have been registered, the Finanzamt can backdate your registration and assess the VAT you didn’t charge, out of your own pocket. Late payment surcharges (Säumniszuschläge) run at 1% per month on top.
Visibility: since 2024, EU payment providers report cross-border payment data to EU tax authorities through CESOP. Sellers receiving regular payments from EU customers are visible to tax authorities even without a registration.

If you’re already behind, see Late EU VAT registration. Coming forward voluntarily is almost always cheaper than being found.

How GoodVat handles this for US sellers

Working out IOSS vs DDP, German registration, LUCID and the new duty rules for one country is manageable. Doing it for every country you ship to, while also tracking your US state nexus, isn’t. GoodVat Global Tax Compliance does it in one place:

Tells you where you owe tax, in the EU and in every US state, from your actual orders
Registers you for IOSS, German VAT or anything else you need
Calculates the right rate for every product and destination at checkout
Files your returns and sends your customers compliant invoices

Checklist for US sellers shipping to Germany

Work out your route: shipping from the US or stocking in Germany? Orders over or under €150? Marketplace or your own store?
For orders of €150 or less from your own store: appoint an IOSS intermediary and turn on EU VAT collection at checkout.
For DDP orders over €150 or stock in Germany: register for German VAT with the Finanzamt Bonn-Innenstadt and get an EORI number.
Show VAT-inclusive prices to German consumers. It’s a legal requirement under the Price Indication Ordinance (PAngV), not a nice-to-have.
Register with LUCID before your first shipment, plus ElektroG or battery registration if your products need it.
Fix your customs data: accurate HS codes and product descriptions, transmitted electronically by your carrier.
Budget for the €3 duty per item line on parcels under €150.

The EU selling setup checklist walks through the same steps for all 27 EU countries.

FAQ

Is there a VAT threshold for US companies selling to Germany?

No. Germany and the rest of the EU have no VAT registration threshold for businesses based outside the EU. The €10,000 EU distance-selling threshold and Germany’s €25,000 small business (Kleinunternehmer) exemption only apply to businesses established in the EU. A US seller owes German VAT from the first sale to a German consumer.

Do I have to collect VAT if I ship from the US and the customer pays at delivery?

No. If you sell Delivered at Place (DAP) without IOSS, German customs collects 19% import VAT, any customs duty and a carrier handling fee from the customer at the door. You don’t register or collect anything, but customers often refuse parcels with surprise charges.

Do US sellers need IOSS to sell to Germany?

IOSS is optional but strongly recommended for orders of €150 or less. With IOSS you charge 19% German VAT at checkout and the parcel clears customs without extra charges for the customer. A US business must appoint an EU-based IOSS intermediary to register.

Does the US–Germany tax treaty exempt me from German VAT?

No. The US–Germany tax treaty covers income taxes. It does not cover VAT, which is a tax on consumption that applies to sales made into Germany regardless of where the seller is based.

Do I need a German VAT number to sell on Amazon.de?

If Amazon stores your stock in Germany (FBA or Pan-European FBA), yes. Storing goods in Germany triggers German VAT registration from your first sale, and Amazon asks for your German tax registration certificate. If you ship each order from the US, you usually don’t, because Amazon collects the VAT on imported orders of €150 or less.

What VAT rate do I charge German customers?

19% for most goods, including clothing, electronics, cosmetics and homeware. 7% for books, most food and some other essentials. Children’s clothing is 19% in Germany.

Do prices for German customers have to include VAT?

Yes. Germany’s Price Indication Ordinance (PAngV) requires prices shown to consumers to include VAT. A price shown as $40 plus tax is not compliant for German consumers.

Does your US SaaS need to charge VAT in Germany?: the same question for software and subscriptions
Selling to Germany: rates, rules and compliance: Germany’s VAT rates, invoicing and customs in detail
Selling to EU consumers (IOSS): how IOSS works across all 27 EU countries
IOSS intermediaries compared: who can register you, and what they charge
Selling to EU businesses: reverse charge and VAT number checks
International VAT guides for US sellers: every guide in this series