Ecommerce sales in Germany grew 19% in 2021 compared to the previous year. Ecommerce has shown consistent global growth, and Covid lockdowns accelerated the trend.
Increasingly, consumers are shipping using their mobile devices. According to reports, 40% of all German ecommerce sales were conducted on a mobile device. Younger consumers, in particular, tend to shop using a smartphone or tablet.
Analysts expect the growth trend to continue, forecasting over €110 in German online sales in 2022.
New economy, new VAT rules
Like many EU markets, Germany is clearly a desirable destination for ecommerce sales. If you sell goods or services online, Germans customers have the market power and digital savvy needed to drive your sales.
But with sales comes VAT obligations. Ecommerce is a great business opportunity. But that also potentially means you need to register for VAT in multiple countries, which can be a complex, confusing and time-consuming process.The good news is that new EU e-commerce VAT regulations make European compliance much simpler and cost-effective.
Which ecommerce VAT solution is right for your business?
If you sell goods online to customers in Germany or any other EU countries, there are now two VAT mechanisms that make compliance much simpler.
If your goods are already in the EU at the point of sale, then the e-commerce One Stop Shop (OSS) is for you. Using the OSS, you can account for VAT on your sales to customers throughout the EU with a single OSS VAT return.
In other words, instead of registering for VAT in every country in which your customers are situated, you can simply register for the OSS and file a single quarterly return. It’s faster, simpler and more cost-effective to manage.
For goods that are outside of the EU at the point of sale, you need the Import One Stop Shop (IOSS).
If you want to grow your ecommerce footprint in Europe, get in touch with the ecommerce VAT specialists. We’ll make managing your VAT simple, fast, cost-effective and efficient.
The IOSS has a number of benefits. It not only helps you manage VAT on e-commerce sales. The IOSS also promises fast-tracked customs procedures. And your customers benefit because there are no surprise costs upon delivery.