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The Federal Ministry of Finance for Germany has delayed the requirement for a USt 1 TI tax certificate which should be obtained by all non-resident online sellers.
It was confirmed that from 1st March 2019, all non-EU online sellers needed to have the certificate submitted to the platforms they sell on, if not the platform was to be held responsible for any unpaid VAT.
The same criteria applies to EU marketplace sellers.
Due to the vast number of certificate applications, the Ministry of Finance for Germany has allowed an additional 15 days for non-EU sellers to obtain their certificates.
However, the submission of the application must be done by the 28th February 2019.
Additionally, all non-EU sellers are to appoint a German-resident/agent for progressing their tax related correspondence.
Here are some steps that can be followed to be compliant:
- The online seller needs to be registered for VAT in Germany due to holding goods there or has passed the German distance selling threshold of 100,000 EUR.
- Even though sellers below the German Distance Selling Threshold do not need the Tax certificate as they won’t need to be registered. The marketplace may insist on having it which means the seller would need to apply for a German VAT number.
- There is a Ust TJ form which would need to be completed, this will capture details of the seller’s VAT number (Steuernummer), any tax advisor info, the agent authorised and appointed (non EU sellers), the marketplace and seller ID details for all marketplaces in Germany.
- Submit the application to the appropriate Tax Office in Germany for the country of residence for seller. This can differ for example: Chinese sellers would submit via Berlin.
- A USt 1 TI VAT certificate will then be issued, as long as the seller has been getting the correct checks of the VAT office. This could relate to sales that have historically been undeclared on the marketplace.
- Submit USt 1 TI certificate to the relevant marketplaces via the online sellers login/admin sections.