Accurate, complete, and timely data is essential for filing VAT returns in Germany. Errors or missing information can lead to incorrect filings, delays at the Finanzamt, or additional work that may incur manual-processing fees. Below are the most common issues we see specific to German VAT, along with clarifications to help you avoid them.

1️⃣ Incorrect VAT Rates Applied (19% vs. 7%)

Most common mistake in Germany.
Clients often upload data where the wrong tax rate has been applied to domestic sales.

Examples:

• Charging 19% instead of the reduced 7% (e.g., books, food items)

• Applying 7% to products that must legally be taxed at 19%

• Marking sales as “0%” without a valid reason

➡️ Consequence: Incorrect tax due, risk of tax office queries, amendments, and penalties.

2️⃣ Missing or Incorrect Treatment of Domestic Returns & Refunds

Many businesses forget to upload:

• Order cancellations

• Partial refunds

• Full refunds

• Item returns

These must be included for the correct reporting period.

➡️ Consequence: Overstated tax liability and inconsistencies between your marketplace records and the tax office filing.

3️⃣ Incorrect Dates Assigned to Transactions

Germany requires VAT reporting by the period in which sales occurred.
Common errors include:

• Late-recorded sales pushed into the wrong month

• Returns appearing in a later period than the original sale

• Backdated transactions not properly shown in the upload

➡️ Consequence: Filing corrections (UStVA amendments) may be required.

4️⃣ Misunderstanding Intra-Germany Stock Movements

Some businesses move stock between German warehouses (e.g., 3PLs or Amazon FBA nodes). These are not separate taxable events but must be recorded correctly if they impact reportable quantities.

Errors include:

• Treating movement as a sale

• Missing internal transfers that affect inventory records

• Misclassifying stock movement as EU cross-border (when it is fully inside Germany)

➡️ Consequence: Distorted taxable base and reconciliation issues.

5️⃣ Uploading Incomplete or Filtered Data Sets

This happens when clients:

• Export only “fulfilled orders” instead of all orders

• Exclude cancelled or pending transactions

• Include only one marketplace instead of all sales channels

• Forget manual sales or offline invoices

➡️ Consequence: Tax-office discrepancies and risk of penalties for underreporting.

6️⃣ Confusion Between VAT Exempt and 0% VAT Sales

German VAT exemptions are very specific.
Examples of incorrect classifications:

• Marking a domestic German sale as “0% export”

• Treating a German B2B sale as reverse charge when it is not

• Confusing OSS cross-border sales with domestic sales

➡️ Consequence: Incorrect calculation of VAT due and validation errors by the Finanzamt.

7️⃣ Mixing Up German Domestic Sales with EU Cross-Border Sales

Even if you sell throughout the EU, your German VAT return must only include German-taxable transactions.

Common misconceptions:

• Believing that OSS replaces German VAT returns (it does not if you hold stock in Germany)

• Uploading EU cross-border transactions into the German VAT folder

• Thinking that German VAT is due on all EU sales

• Thinking that German VAT is due on all EU sales, even though it is only for domestic B2C sales. Execption: B2C EU sales which are not yet reported as OSS (depending on threshold)

➡️ Consequence: Incorrect VAT filing and possible double taxation.

8️⃣ Late Data Uploads Leading to Manual Work Fees

Hellotax relies on timely data to prepare your monthly or quarterly German VAT return.
All data must be uploaded by the 4th of the month following the reporting period.

If data is uploaded after the 4th, our team must manually rework or rebuild your filing.

➡️ Late-data manual processing fee: €119
➡️ Risk: Filing delays or tax office penalties if the statutory deadline cannot be met.

9️⃣ Sending Data by Email Instead of Uploading to the Hellotax System

The Hellotax platform is the only place where data can be processed.
Emailing data creates:

• Privacy/compliance risks

• Missing information

• Delays because data cannot be automated

➡️ Consequence: Data will not be processed. It must be reuploaded correctly in your Hellotax account before work can begin.

✅ Best Practices for Accurate German VAT Filing

✔ Always upload full, unfiltered reports from all sales channels
✔ Include refunds, returns, and cancellations
✔ Double-check VAT rates (19% / 7%)
✔ Ensure dates match the actual transaction period
✔ Never send data by email — upload only in your Hellotax portal
✔ Upload no later than the 4th of the month after the end of the period
✔ Use our data integration guides to ensure accuracy