Key Takeaways
- This glossary covers 40+ German VAT and tax terms that foreign companies encounter during registration, filing, and compliance.
- Each term includes the German original, English translation, and a plain-language explanation of what it means in practice.
- Terms are cross-linked to detailed VATdesk guides where you can learn more about specific topics.
- Bookmark this page as a quick reference whenever you encounter unfamiliar German tax terminology.
Compiled by VATdesk, April 2026. Sources: BZSt, UStG, AO, BGB.
German tax law uses terminology that has no direct equivalent in English. For foreign companies navigating VAT registration, monthly filings, or correspondence with the Finanzamt, understanding these terms is not optional — it is a prerequisite for compliance. This glossary defines every term you are likely to encounter, in plain English, with links to our detailed guides where applicable.
Jump to a letter
A
Abgabenordnung (AO)
The Abgabenordnung is Germany’s foundational tax procedural law. It governs how all taxes are assessed, collected, and enforced — including deadlines, penalties, interest, and appeals. When you see a reference to §149 AO or §152 AO, it refers to specific sections of this code. Think of it as the rulebook that the Finanzamt follows for every tax procedure.
Anforderung
A written request from the Finanzamt asking for documents, information, or action. If you receive an Anforderung, it typically has a deadline and ignoring it can lead to enforcement measures such as a Zwangsgeld (coercive fine).
Anmeldung
A general term for registering or declaring something with the authorities. In VAT context, it most often refers to the Umsatzsteuervoranmeldung (preliminary VAT declaration). It can also mean registering a business (Gewerbeanmeldung) or registering for tax purposes.
Ausgangsrechnung
An invoice you issue to your customers. The VAT shown on your Ausgangsrechnungen is the output tax you owe to the Finanzamt. German invoicing rules (§14 UStG) specify mandatory fields including your Steuernummer or USt-IdNr, the net amount, VAT rate, and gross total.
B
Bescheid
A formal notice from the Finanzamt communicating a tax assessment or decision. A Steuerbescheid tells you how much tax is owed; a Haftungsbescheid holds you liable for another party’s tax. Bescheide have legal deadlines for appeal (typically one month).
Betriebsstätte
A fixed location through which a business operates in Germany, such as an office, warehouse, or factory. Having a Betriebsstätte triggers tax obligations beyond VAT, including corporate income tax. For Amazon FBA sellers, storing inventory in a German fulfilment centre does not typically constitute a Betriebsstätte, but it does create a VAT registration obligation.
BZSt (Bundeszentralamt für Steuern)
The BZSt is the central federal tax authority. It issues USt-IdNr numbers, processes Zusammenfassende Meldungen, handles VAT refund applications from foreign businesses, and manages the One-Stop-Shop (OSS) scheme in Germany. It is distinct from the local Finanzamt, which handles day-to-day tax administration.
D
DATEV
DATEV is the dominant accounting software and data processing cooperative used by German Steuerberater (tax advisors). When VAT returns are “filed via DATEV,” it means the Steuerberater uses DATEV’s integrated system to prepare and transmit filings electronically to the Finanzamt. It connects directly to ELSTER. For foreign companies, having a Steuerberater who files via DATEV is the standard approach. See our guide on DATEV for foreign companies.
Dauerfristverlängerung
A formal arrangement with the Finanzamt that extends every monthly VAT return deadline by one calendar month. Applied for once via ELSTER, it remains in force indefinitely. In exchange, you must pay a Sondervorauszahlung (special advance payment) of 1/11 of the prior year’s VAT each February. This is the single most important tool for managing German VAT deadlines. See our full 2026 deadline calendar.
E
Eingangsrechnung
An invoice you receive from a supplier. The VAT on your Eingangsrechnungen is your Vorsteuer (input VAT), which you can deduct from your output VAT liability on your VAT return. Proper documentation of Eingangsrechnungen is essential for claiming input tax deductions.
ELSTER
Germany’s official online portal for electronic tax filings. All VAT returns, annual declarations, and related filings must be submitted through ELSTER or through software that connects to it (such as DATEV). Foreign companies can register for an ELSTER account, but in practice most use a Steuerberater who files on their behalf.
Erstattung
A VAT refund from the Finanzamt. This occurs when your Vorsteuer (input VAT) exceeds your output VAT for a period — common for businesses making significant purchases or investments in Germany. The Finanzamt processes refunds after reviewing your VAT return, typically within 4–8 weeks. For non-EU businesses, refund claims go through the BZSt under a separate procedure.
F
Finanzamt
The local tax authority responsible for administering taxes in a specific region. Your assigned Finanzamt handles your VAT registration, issues your Steuernummer, processes your returns, and conducts audits. For foreign companies without a German address, the competent Finanzamt is typically determined by the nature of your activity — for instance, online sellers are often assigned to Finanzamt Berlin Neukölln. All formal correspondence arrives from your Finanzamt in German.
Fiskalvertretung
A fiscal representative is a German-resident entity that acts on behalf of a foreign company for VAT purposes. Germany does not require fiscal representation for EU companies, but non-EU businesses may need one in specific situations. The fiscal representative assumes joint liability for the VAT obligations, which is why many Steuerberater are reluctant to take on this role. It is distinct from simply appointing a Steuerberater to file returns.
Fragebogen zur steuerlichen Erfassung
The official questionnaire every business must complete when registering for tax in Germany. It collects information about your business structure, expected revenue, banking details, and VAT status. For foreign companies, this is the core document in the VAT registration process. It must be submitted in German via ELSTER. See our English guide to the Fragebogen.
G
Gewerbeanmeldung
The registration of a commercial business with the local Gewerbeamt (trade office). This is a separate process from tax registration and is required for businesses with a physical presence in Germany. Most foreign companies registering only for VAT (e.g. Amazon FBA sellers) do not need a Gewerbeanmeldung unless they establish a Betriebsstätte.
Grunderwerbsteuer
A tax levied on the purchase of real property in Germany, ranging from 3.5% to 6.5% of the purchase price depending on the federal state. While not a VAT term, it appears in German tax correspondence and is often confused with VAT by foreign companies acquiring property. It is a one-time tax, not a recurring obligation.
H
Haftungsbescheid
A formal notice from the Finanzamt holding a person or entity liable for another party’s unpaid tax. In VAT context, this can arise when a fiscal representative or managing director is held personally liable for a company’s VAT debt. Receiving a Haftungsbescheid triggers the right to appeal within one month.
I
Innergemeinschaftliche Lieferung
A supply of goods from one EU member state to a VAT-registered business in another EU member state. These supplies are zero-rated for VAT in Germany (0% VAT), provided you can document the transport and the buyer’s valid USt-IdNr. You must report them in the Zusammenfassende Meldung (ZM). Failure to report correctly can result in the zero-rate being denied and full German VAT becoming due.
Innergemeinschaftlicher Erwerb
The receipt of goods in Germany from a supplier in another EU member state. As the buyer, you must self-assess German VAT on the acquisition (the reverse charge principle applies). The VAT is both charged and deducted on the same return, making it cash-flow neutral for businesses with full input tax deduction rights.
J
Jahreserklärung
The annual VAT declaration (Umsatzsteuerjahrreserklärung) that reconciles all monthly or quarterly returns for the calendar year. It is due by 31 July of the following year if self-filed, or by the end of February of the second following year if filed by a Steuerberater. Even if your monthly returns were accurate, the Jahreserklärung is a mandatory separate filing. See our deadline guide for exact dates.
K
Kleinunternehmerregelung
An optional VAT exemption for businesses with annual revenue below €25,000 (raised from €22,000 in 2025). Under this scheme, you do not charge VAT on your invoices and do not file VAT returns, but you also cannot deduct Vorsteuer (input VAT). Foreign companies selling into Germany generally cannot use this exemption for their German VAT obligations, as it is designed for domestically established small businesses.
L
Lastschriftmandat
An authorisation allowing the Finanzamt to collect VAT payments directly from your bank account via SEPA direct debit. Setting up a Lastschriftmandat is strongly recommended because it ensures VAT is paid on time automatically, avoiding Säumniszuschlag (late payment surcharges). Foreign companies need a SEPA-compatible bank account. See our guide on paying German VAT from abroad via SEPA.
Leistungsempfänger
The person or business receiving a good or service. The term appears frequently in reverse charge situations, where the Leistungsempfänger (rather than the supplier) is responsible for accounting for VAT. German invoices in reverse charge scenarios must include the note “Steuerschuldnerschaft des Leistungsempfängers.”
M
Mehrwertsteuer (MwSt)
An informal synonym for Umsatzsteuer. In everyday German, Mehrwertsteuer and MwSt are the terms people use on receipts and in conversation. In law and official filings, the correct term is Umsatzsteuer (USt). There is no legal or practical difference between the two — they refer to exactly the same tax. The standard rate is 19%, with a reduced rate of 7% on certain goods.
N
Nullmeldung
A VAT return reporting zero taxable transactions for the period. Even if your business had no sales and no purchases in Germany during a filing period, you must still submit a Nullmeldung by the deadline. Failing to file a nil return triggers the same Verspätungszuschlag (late filing penalty) as failing to file any other return — a minimum of €25 per missed return.
O
One-Stop-Shop (OSS)
An EU-wide simplification scheme that allows businesses to report and pay VAT on cross-border B2C sales to all EU countries through a single return filed in their home member state. Instead of registering for VAT in every EU country where you sell to consumers, you register for OSS once and file quarterly. OSS applies once your EU-wide B2C distance sales exceed €10,000 per year. However, OSS does not cover all situations — if you store goods in Germany (e.g. Amazon FBA), you still need a local German VAT registration. See our detailed comparison of OSS vs local VAT registration.
R
Rechnungsstellung
The act of issuing invoices. German invoicing requirements (§14 UStG) are among the most prescriptive in Europe. A compliant invoice must include: seller and buyer name/address, Steuernummer or USt-IdNr, invoice date, sequential invoice number, description of goods/services, net amount, applicable VAT rate, VAT amount, and gross total. Missing any mandatory field can prevent the buyer from deducting Vorsteuer.
Reverse Charge (Umkehr der Steuerschuldnerschaft)
A VAT mechanism where the recipient of a supply, rather than the supplier, is responsible for accounting for VAT. In Germany, the reverse charge applies to most B2B services received from foreign suppliers and to certain domestic transactions (e.g. construction services, scrap metal). The supplier issues an invoice without VAT, and the recipient reports both output and input VAT on their return. The invoice must note that the reverse charge applies.
S
Säumniszuschlag
A penalty for paying tax after the due date. The Säumniszuschlag is 1% of the outstanding tax amount for each commenced month of delay. It is separate from the Verspätungszuschlag (late filing penalty) — you can be hit with both if you file late and pay late. The Schonfrist (grace period) provides a brief buffer. See our detailed guide on German VAT penalties.
Schonfrist
A short grace period of three days after the payment due date during which the Finanzamt will not charge a Säumniszuschlag. The Schonfrist only applies to payments, not to filing deadlines. If your VAT payment is due on the 10th, the Schonfrist extends the effective payment deadline to the 13th. This only applies to bank transfers — cash and cheque payments have no Schonfrist.
Sondervorauszahlung
An annual advance payment required to maintain a Dauerfristverlängerung. The amount equals 1/11 of the total VAT paid in the prior calendar year, due by 10 February each year. It is credited against the December VAT return. For new registrations with no prior-year VAT, the Sondervorauszahlung may be zero or estimated. See our deadline calendar for the exact due date.
Steuerberater
A professionally licensed tax advisor in Germany, regulated by the Steuerberaterkammer. Unlike in many countries, the title Steuerberater is legally protected — only persons who pass the Steuerberater examination may use it and provide tax advisory services commercially. For foreign companies, engaging a Steuerberater is the standard (and often the only practical) way to handle German VAT compliance. A Steuerberater can file via DATEV, represent you before the Finanzamt, and extend your annual declaration deadline.
Steuernummer
A domestic tax identification number assigned by your local Finanzamt. It is used for filing VAT returns and all domestic tax matters. The Steuernummer format varies by federal state (e.g. “12/345/67890”). It is different from the USt-IdNr, which is used for intra-EU transactions. Both can appear on invoices. See our guide on the difference between Steuernummer and USt-IdNr.
Steuerschuldnerschaft des Leistungsempfängers
The legal phrase that must appear on invoices when the reverse charge mechanism applies. It indicates that the recipient, not the supplier, is responsible for remitting VAT to the tax authorities. Omitting this note from a reverse charge invoice can create complications for both parties.
U
Umsatzsteuer (USt)
The official legal term for German VAT. It is levied on the supply of goods and services at a standard rate of 19% or a reduced rate of 7%. The word literally translates as “turnover tax.” In everyday language, Germans use Mehrwertsteuer (MwSt) interchangeably, but Umsatzsteuer is the term used in legislation (UStG — Umsatzsteuergesetz), official forms, and tax returns.
Umsatzsteuer-Identifikationsnummer (USt-IdNr)
A unique EU-wide VAT identification number starting with the country prefix “DE” followed by nine digits (e.g. DE123456789). It is issued by the BZSt and used for intra-EU B2B transactions, particularly for zero-rating innergemeinschaftliche Lieferungen. The USt-IdNr is distinct from the Steuernummer. Every VAT-registered business in Germany should have both. See our guide on the difference between Steuernummer and USt-IdNr.
Umsatzsteuervoranmeldung (USt-VA)
The periodic (usually monthly) VAT return that every VAT-registered business must file with the Finanzamt. It reports output VAT collected and input VAT (Vorsteuer) claimed for the period. The standard deadline is the 10th of the month following the reporting period, extendable by one month via Dauerfristverlängerung. Filing is mandatory even for periods with no activity (see Nullmeldung). See our 2026 deadline calendar.
V
Verspätungszuschlag
A penalty charged for submitting a tax return after the deadline. Under §152 AO, the Finanzamt can charge up to 10% of the assessed tax, with a minimum of €25 per return and a maximum of €25,000. The Verspätungszuschlag applies per return, so missing three monthly deadlines means three separate penalties. It is separate from the Säumniszuschlag for late payment. See our guide to German VAT penalties.
Voranmeldungszeitraum
The time period covered by a single Umsatzsteuervoranmeldung. Depending on your prior-year VAT liability, the Voranmeldungszeitraum is either one calendar month (for VAT above €7,500), one calendar quarter (for VAT between €1,000 and €7,500), or one calendar year (for VAT below €1,000). Newly registered businesses must file monthly for the first two calendar years.
Vorsteuer
The VAT you pay on business purchases and expenses. You deduct Vorsteuer from your output VAT on each VAT return. If your Vorsteuer exceeds your output VAT in a period, the Finanzamt refunds the difference (see Erstattung). To claim Vorsteuer, you need a compliant invoice (Eingangsrechnung) that meets all §14 UStG requirements.
Z
Zusammenfassende Meldung (ZM)
A mandatory report listing all intra-EU B2B supplies of goods and services to VAT-registered buyers in other EU member states. Filed monthly (or quarterly if intra-EU goods supplies stay below €50,000/quarter) via ELSTER, the ZM is due by the 25th of the month following the reporting period. It is a separate filing from the VAT return and is submitted to the BZSt. See our deadline calendar for exact due dates.
Zwangsgeld
A fine imposed by the Finanzamt to compel compliance with a legal obligation, such as submitting overdue tax returns or providing requested documents. The Zwangsgeld can be up to €25,000 per instance and may be imposed repeatedly until you comply. It is distinct from the Verspätungszuschlag (which penalises the lateness itself) — the Zwangsgeld is an enforcement tool to force action.
Frequently Asked Questions
What is the difference between Umsatzsteuer and Mehrwertsteuer?
There is no difference. Umsatzsteuer (USt) is the official legal term used in German tax law, on tax forms, and in legislation (UStG). Mehrwertsteuer (MwSt) is the colloquial term used in everyday language, on receipts, and in conversation. Both refer to the same value-added tax at 19% (standard) or 7% (reduced). Use either in normal communication, but use Umsatzsteuer when dealing with official filings.
What is the difference between a Steuernummer and a USt-IdNr?
The Steuernummer is a domestic tax number assigned by your local Finanzamt, used for filing returns and domestic tax correspondence. The USt-IdNr (DE + 9 digits) is an EU-wide VAT identification number issued by the BZSt, used for intra-EU B2B transactions and to zero-rate cross-border supplies. You need both. They serve different purposes and are not interchangeable. Read our detailed comparison guide.
Do I need to understand all these terms to register for VAT in Germany?
Not all of them upfront. The most important terms for registration are Fragebogen zur steuerlichen Erfassung (the registration form), Steuernummer, USt-IdNr, and Finanzamt. Once registered, you will encounter terms related to filing (USt-VA, Dauerfristverlängerung) and payment (Lastschriftmandat, Säumniszuschlag). Working with a Steuerberater means you don’t need to master every term, but understanding the basics helps you follow what your advisor is doing.
Are there penalties for getting German VAT terminology wrong on invoices?
Not for terminology itself, but for missing mandatory invoice content. German invoicing rules (§14 UStG) require specific information on every invoice. If a mandatory field is missing or incorrect, the buyer may be unable to claim Vorsteuer (input tax deduction), and you may face questions from the Finanzamt during an audit. The most common errors involve missing Steuernummer/USt-IdNr, incorrect VAT rates, and omitting the reverse charge notice when required.
Related guides:
- VAT Registration Germany: The Complete Guide for Foreign Sellers
- Fragebogen zur steuerlichen Erfassung: English Guide
- Steuernummer vs USt-IdNr: What Is the Difference?
- German VAT Return Deadlines 2026: Every Date You Need to Know
- German VAT Penalties for Late Filing
- OSS vs Local VAT Registration in Germany
- How to Pay German VAT from Abroad via SEPA
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