Germanyâs Value Added Tax (VAT), known as âUmsatzsteuerâ (USt) or âMehrwertsteuerâ (MwSt), applies at a standard rate of 19%, a reduced rate of 7%, and a zero rate for photovoltaic systems.
It is not necessary to appoint a German fiscal representative to claim a VAT refund under either Directive 2008/09/EC (EU businesses) or the 13th Directive (non-EU businesses).
Submission Methods Available Through VAT4U:
Automated Bot-Based Submission
XML File Submission (coming soon) - an automated, secure way to submit VAT refund claims directly to tax authorities by compiling all claim data into an XML file, which is sent via a direct SFTP connection to the tax administration, enabling fast, large-volume claim processing with immediate feedback.
Requirements:
Certificate (received from the German tax administration)
Certificate password (entered at submission time only; not stored in VAT4U)
VAT / Tax ID:
Do not enter a supplierâs VAT ID in the Tax ID field.
Supplier VAT IDs must be entered in the Vendor VAT ID field.
Always include the two-letter country code with the VAT ID, as suppliers often omit it on invoices.
You may enter your own email and phone number instead of the applicantâs.
The language selector is located at the top of the page, where you can choose either English or German in case you need it.
How It Works:
Upload the certificate under Company Settings;
When ready to submit, select the certificate, enter the password, and click Submit Claim;
A bot logs into the German tax portal, fills in the claim, and creates a draft that can be located here:
The user must log into the portal manually to click âSend Claimâ. If any errors occur after claim submission, a message will appear. You need to copy this message and open a ticket with our support team:
â ïž Once clients select the certificate and enter the password in VAT4U, they click to submit the claim. At that point, a new page appears showing the bot's progress in real time, like step-by-step logs like âlogging into the portal,â âfilling applicant details,â âentering invoices,â and so on:
If everything goes smoothly, a green message confirms that the bot has completed the process successfully, and the user is prompted to log into the portal to finalize and submit the claim manually.
If the bot fails, a message appears indicating that the claim couldn't be processed. The bot mimics human actions such as logging in, typing data, so failures can happen for various reasons: invalid VAT numbers, incorrect periods, claims already created, or data entry mistakes:
We try to minimize these issues by flagging risks in advance, but some users proceed anyway and face errors. When failures occur, users can view the screenshot to identify the problem or reach out to the VAT4U technical team for support.
đš Fallback Option In Case the Bot Doesnât Work:
If the bot fails to complete the claim, users can still manually submit it through the German tax administration portal. To submit a claim directly to the German tax authorities, you need to access the BZSt-Online web service through the Elster Online Portal at https://www.elsteronline.de/eportal. Since it's their own account, users can log in and enter the necessary information themselves.
To avoid manually entering every invoice, users can click "Get Claim Data" to download a CSV file in VAT4U. This file follows the official format required by the German tax authority and can be imported directly into the portal.
In addition to the claim data, users can also download the required claim attachments from VAT4U, such as bank details or documents compiled during the claim creation process. These need to be uploaded to the portal as part of the manual submission as well.
German VAT Refund Guide
EU VAT Refunds (Directive 2008/09/EC)
German-established businesses can claim VAT refunds in other EU countries.
Filing procedure:
Claims are submitted electronically via the Elster Online Portal: https://www.elsteronline.de/bportal.
Refund claims can be filed by the claimant or a third party (even outside Germany).
Confirmation of submission is issued by email.
Technical requirements:
Registration via Elster Online Portal and access through the BZSt-Online system.
Data uploaded in XML or CSV format (Excel sheets can be converted).
File types accepted: PDF, JPEG, TIFF (max 5MB, black & white, 200 dpi).
No invoice limit per claim, but total upload size limited to 5MB.
Required declaration:
The claimant must confirm they had no fixed establishment, supplies, or residence in the refund country, except for activities under the reverse charge, intra-Community transactions, or transport services.
If all invoices cannot be uploaded, missing files must be emailed to the tax authorities.
EU Businesses (Directive 2008/09/EC)
EU-established companies may recover German VAT if they:
Are not registered or liable for VAT in Germany;
Have no residence or fixed establishment in Germany;
Have not provided taxable supplies there, except for reverse charge or exempt cross-border services.
Non-refundable VAT
VAT cannot be recovered for:
Non-business or gift-related expenses.
Purchases linked to exempt activities.
Minimum amounts:
EUR 400 (for 3â12 months)
EUR 50 (for full year)
Deadlines:
Claims must be filed within 9 months after year-end (by 30 September of the following year).
Period covered: 3 months to 1 year.
Proxy:
If filed by a third party, a valid electronic proxy must be provided.
Supporting documents:
Electronic invoices required if the taxable base is â„ EUR 1,000 (or EUR 250 for fuel).
Missing documents cannot be added later.
A limited number of attachments can be uploaded; excess files must be emailed.
E-invoices:
Accepted if authenticity and integrity are ensured (identity of issuer verified, no content alteration).
Refund process:
Decision issued within 4 months and 10 days, extendable to 8 months if additional info is requested.
Refunds are paid in EUR to the claimantâs or proxyâs account.
Appeals must be filed in writing within one month of the rejection notice.
Average processing time: 8â14 months.
Non-EU Businesses (13th Directive)
Eligibility
Refunds are available only for countries with reciprocity agreements (e.g., US, UK, Switzerland, Japan, Australia, Canada, etc.; see full list per Federal Ministry of Finance, 9 Nov 2022).
Non-refundable VAT:
Fuel not resold by non-EU companies.
Non-business or exempt-related purchases.
Minimum amounts:
EUR 1,000 (for 3â12 months)
EUR 500 (for full year)
Deadlines:
Claims due by 30 June of the following year (no extensions allowed).
Period covered: 3 months to 1 year.
Application process:
Claims submitted via BZSt Online Portal (BOP):
âhttps://www.bzst.deOriginals of invoices, import documents, and a certificate of taxable status must be sent by post to:
Bundeszentralamt fĂŒr Steuern
Dienstsitz Schwedt/Oder
Passower Chaussee 3b, 16303 Schwedt/Oder, Germany
E-invoices:
Accepted if stored on physical media (e.g., CD) submitted with the application.
Refunds & appeals:
Refunds issued in EUR to claimantâs or representativeâs bank account.
Rejected claims must state reasons; appeals filed within one or two months (depending on claimantâs location).
Average refund time: 10â16 months.
No penalties for rejected claims.
Penalties
Late Registration
Germany does not impose a specific penalty for late VAT registration. However, if late registration leads to delayed VAT return filings, standard late-filing penalties may apply.
Late Filing and Payment
If VAT returns are filed late, a surcharge of up to 10% of the assessed tax (maximum EUR 25,000) may be imposed. An additional enforcement fine of up to EUR 25,000 can also apply.
For late payments, interest of 1% per month is charged on the outstanding VAT amount, rounded down to the nearest EUR 50.
Errors and Corrections
There are no specific penalties for unintentional errors in filed returns. However, interest of 0.15% per month accrues on any underpaid tax.
Failure to notify the tax authorities of changes in registration details that hinder proper taxation may result in penalties or be treated as fraudulent behavior, in which case interest of 0.5% per month applies.
Fraud
In cases of voluntary disclosure to avoid prosecution for tax fraud, surcharges apply as follows:
10% of undeclared tax between EUR 25,000 and EUR 100,000
15% between EUR 100,000 and EUR 1 million
20% above EUR 1 million
Interest of 0.5% per month (or regular 0.15% interest) is charged on fraudulent amounts. Each individual involved may be penalized separately.
Personal Liability
Company officers can be held personally liable only in cases of fraudulent activity. Penalties include fines or imprisonment of up to 10 years, and liability for the unpaid tax itself.
Even without criminal intent, legal representatives may be held responsible if they neglect supervisory duties. Otherwise, directors are not personally liable for VAT reporting errors.