Value Added Tax (VAT) in international business

The following is an overview of the German tax offices with which companies based abroad have to register for VAT purposes if they intend to conduct transactions subject to VAT in Germany.

Companies located in third countries (non-EU countries for example in South America), may find that under certain circumstances it is advantageous to be represented by a fiscal representative in Germany for purposes of VAT (Value Added Tax) where they are importing goods via the Port of Hamburg into EU states outside of Germany. Detailed information available here.

A foreign company can have itself represented in Germany by a number of fiscal representatives. The representation applies only to the extent of the powers granted, for example only for deliveries from a certain supplier. The particulars which should be contained in such assignment of powers are shown in the specimen form attached to this information sheet for granting of powers of fiscal representation.