Once you are registered for VAT in Germany, the Finanzamt writes to you by post, in German, to the address it has on file. For a seller based in another country, these letters are easy to misread. Some are routine and need nothing from you. Others start a deadline that runs whether you have read the letter or not. Several of them demand money even when your VAT was correct, because a return or a payment did not arrive the way the office expected.
This guide goes through the letters foreign online sellers receive most often, what each one means, and when you need to act.
First: when does the deadline start?
German tax law treats a letter sent by post as received four days after it was posted, the date printed on the letter. Deadlines, such as the one-month period for an objection, are counted from that day, not from the day you opened it. If the letter went to an old address, or sat in a mailbox nobody checks, the deadline still runs. Make sure the Finanzamt has a current postal address for you, or for your representative if you have authorised one to receive mail.
The letters you will see most often
| German heading | What it is | Do you need to act? |
|---|---|---|
| Erinnerung / Aufforderung zur Abgabe | Reminder: a VAT return has not been received | Yes: file the missing return quickly to avoid an estimate and surcharges |
| Androhung eines Zwangsgeldes | Warning that a coercive fine will follow if you do not file | Yes, urgently: file before the date given |
| Bescheid über Umsatzsteuer / Festsetzung | Assessment: the office has set your VAT, possibly different from your return | Check it against your return; object within one month if it is wrong |
| Schätzungsbescheid (or an assessment with geschätzt) | Estimated assessment: the office guessed your VAT because no return arrived | Yes: file the real return; the estimate is payable until it is replaced |
| Säumniszuschlag | Late-payment surcharge | Pay; check why the payment was late or not matched |
| Verspätungszuschlag | Late-filing surcharge | Pay, or object if the return was in fact on time |
| Zahlungserinnerung / Mahnung | Payment reminder | Yes: pay, or show that you already paid |
| Kontoauszug | Statement of your tax account: what is due, paid and open | Read it: it shows whether payments were matched |
| Request for documents (Bitte um Nachweise, Rückfragen) | The office wants evidence before accepting a figure, often a refund or import VAT | Yes: answer by the date given, with the documents requested |
| ELSTER activation letter | Code to activate online access to your tax account | Pass it to whoever files for you; the code expires |
Reminders and estimated assessments
If a VAT return does not arrive by the deadline, the Finanzamt first sends a reminder. If nothing arrives after that, it can estimate your VAT and issue an assessment for the estimated amount. Estimates are rarely in your favour, and the amount is due on the date shown even though it is only a guess.
The way out is simple: file the real return. A filed return replaces the estimate. If the deadline to object has not passed, file an objection (Einspruch) at the same time, so the estimated assessment is not final. A missing return is also the most common reason Amazon or another marketplace hears that a German VAT number is “not compliant”. Our guide to VAT returns in Germany lists the filing deadlines.
Surcharges: late payment and late filing
- Säumniszuschlag (late payment): 1% of the unpaid tax, rounded down to the nearest €50, for every month or part of a month the payment is late. It applies automatically, and also when your money arrived but could not be matched to the right tax and period.
- Verspätungszuschlag (late filing): for a late annual VAT return it is set by law, at least €25 for each month of delay. For late monthly or quarterly returns the office decides whether to charge it and how much.
- Zwangsgeld (coercive fine): not a penalty for the past but pressure to file. It is announced first (Androhung) and can be avoided by filing before the date in the letter.
A late-payment surcharge often turns out to be a matching problem. The payment was made, but without the tax number (Steuernummer), the tax type and the period in the reference, so it was not allocated. Check the Kontoauszug: an open debt next to an unallocated credit means the money arrived and only needs to be allocated.
Requests for proof
When a return shows a refund, unusually high input VAT or import VAT, the Finanzamt may ask for evidence before it pays out or accepts the figures. Typical requests are purchase invoices, import documents showing the import VAT (Einfuhrumsatzsteuer) you paid, proof of where goods were stored or shipped, or contracts with your marketplace or warehouse. The letter states a date. If you miss it, the office usually rejects the deduction and assesses the tax without it.
If you import goods into Germany in your own name, keep the customs documents for every shipment from the start. They are the proof the office will ask for.
Disagreeing with a decision: the objection
If an assessment, a surcharge or any other decision is wrong, you can file an objection (Einspruch) within one month of receipt (counted as above). It can be filed in writing or through ELSTER and has to say which decision you object to. An objection does not stop the payment from being due. If you do not want to pay a disputed amount in the meantime, you have to ask separately for the payment to be suspended (Aussetzung der Vollziehung).
Practical rules for foreign sellers
- Open every letter the day it arrives and note the date on it. The four-day rule means the clock may already be running.
- Do not ignore a letter because it is in German. The reminders and estimates that follow are in German too, and they cost money.
- Always pay with the full reference: Steuernummer, tax type and period. One transfer per period is easier to match than one transfer for several.
- Keep the Finanzamt’s address for you up to date, especially after you move or change representative.
- Forward letters to whoever files for you as soon as they arrive, with all pages.
How hellotax helps
hellotax clients forward their tax letters through the Tax Letter Inbox in the hellotax software. Our German accountants read each letter and tell you in plain English what it means, whether you need to do anything, and by when. They also file the objection or the missing return where needed. If you sell from German stock and German tax letters are piling up, talk to our team. Sellers outside the EU will also find our guide to German VAT registration and ELSTER useful.
The post Letters from the German Tax Office (Finanzamt): What They Mean for Foreign Online Sellers appeared first on Hellotax Blog.
This articles is written by : Nermeen Nabil Khear Abdelmalak
All rights reserved to : USAGOLDMIES . www.usagoldmines.com
You can Enjoy surfing our website categories and read more content in many fields you may like .
Why USAGoldMines ?
USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.