As of March 1, 2019, the German tax authorities sanctioned the implementation of a new tax certificate, the “USt 1 TI”, to ensure that all sellers established outside of the European Union are in compliance with German VAT regulations. As of October 1, 2019, this obligation become compulsory for all sellers established within the European Union as well.
To continue or commence online selling activities, sellers now need to hold a valid USt 1 TI VAT Certificate. Failing to meet this requirement may cause the launch of your online activities in Germany to be delayed, or your current online activities to cease.
The USt 1 TI VAT Certificate, which is valid for a 3-year period, is issued after registration for VAT in Germany and upon successful completion of the certificate application process.
With a branch office based in Germany, our Partner Firm can provide you with local tax representation services to assist you with the application process. If you make sales to customers in Germany and would like assistance with obtaining the USt 1 TI VAT Certificate, please reach out to us for an introduction.