How do companies outsource abroad

Sales tax regulations for online retailers with storage outside Germany

This affects retailers who hoard their goods in Amazon's warehouses. If they are now in an Amazon warehouse outside of Germany, the sales tax must be paid in the country from which the goods are being sent at the time of sale.

This in turn presupposes that the seller is registered for sales tax in the respective foreign country and can pay his sales tax there.

Thinking further: In order to send goods from a foreign warehouse, a more detailed research of the local sales tax regulations is necessary, a registration for this sales tax and a process for its payment. In addition to the already increased effort compared to storage in Germany, there are also language barriers and increased costs due to the complex bookkeeping and bureaucracy.

Ultimately, a math game makes sense here: Does storage and shipping in e.g. the Czech Republic or Poland save so many costs that it is worthwhile despite the higher sales tax of 21 and 23 percent there? If not, Germany remains the more sensible deposit. If so: go abroad!

In the case of Amazon warehouses, however, this only affects retailers who send goods worth up to EUR 100,000 per year to German private customers from warehouses in the Czech Republic or Poland. If the value exceeds 100,000 EUR, the German sales tax of 19% applies again and the taxation in Germany.

If the retailer waives the application of the delivery threshold of 100,000 EUR, he can continue to benefit from the German 19%. In this case, deliveries of goods from warehouses in the Czech Republic or Poland to German private customers are taxed from the first euro onwards according to German law.

A VAT registration in the Czech Republic or Poland must still take place - and the tax authorities inform the respective countries about the sales. In this case, German customers continue to benefit from the third-lowest sales tax in the EU of 19%.