USt 1 TI Tax Certificate

Anyone who is selling online via marketplaces in Germany will need to register for a tax certificate.

The certificate is known as a Ust 1 TI and it’s a purpose is to ensure VAT compliance.

Its validity lasts 3 years and will be in paper format until further notice. This requirement applies to all non-EU sellers from the 1st of March 2019 and for EU sellers it will be 1st of October 2019.

The different marketplaces will be required to collect these certificates for any traders on their platforms who are VAT registered in Germany. If this is not done it will make the marketplace liable for anything that is unpaid regarding VAT of the seller.

The requirements for this VAT certificate are that:

• The seller must be registered in Germany for VAT already. This could be due to storing goods there or because the seller has exceeded the German distance sales threshold.

•  Anyone selling below the German distance sales threshold does not need a tax certificate as they don’t need to be registered, however, the marketplaces the seller is selling on may need one for compliance. This would mean that the seller would have to get a German VAT number with a choice to tax at the destination.

•  Completing the Ust TJ form which captures all details of the sellers business and additional info.

•  Submitting the application to the appropriate tax office in Germany for the sellers country of residence. This can differ depending on your country of residence.

• Once the USt 1 TI VAT certificate is issued, subject to the seller meeting checks of the tax office.

• The seller must then submit the USt 1 TI certificate to the marketplaces.

• The USt 1 TI form is valid for 3 years so all sellers must reapply and upload for their marketplaces.

For more information click here.

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