German VAT (Mehrwertsteuer) for eCommerce Sellers: Complete Odoo Setup Guide

If you sell on German marketplaces like Amazon.de, Otto, Zalando, or Kaufland, getting VAT right isn't optional — it's a legal requirement with real penalties for non-compliance. Germany's Mehrwertsteuer (MwSt) system has specific rates, filing obligations, and cross-border rules that every eCommerce seller must follow. This guide shows you how to configure Odoo ERP to handle German VAT correctly across all your sales channels.

What Is German VAT (Mehrwertsteuer)?

Mehrwertsteuer is Germany's value-added tax, administered by the Bundeszentralamt fur Steuern (BZSt). It applies to all goods and services sold in Germany, including online marketplace sales.

German VAT Rates

| Rate | Percentage | Applies To | |------|-----------|------------| | Standard (Regelsteuersatz) | 19% | Most goods and services | | Reduced (ermassigter Steuersatz) | 7% | Food, books, newspapers, public transport, cultural events | | Zero rate | 0% | Intra-EU B2B supplies, exports outside EU |

Who Needs a German VAT Number?

You need a German VAT registration (USt-IdNr) if you:

• Store inventory in Germany (including Amazon FBA warehouses)
• Sell to German consumers from another EU country and exceed OSS thresholds
• Operate a business entity registered in Germany
• Sell on German marketplaces that require VAT registration as a seller prerequisite

Configuring German VAT in Odoo

Step 1: Set Up Tax Rates

In Odoo, navigate to Accounting → Configuration → Taxes and create:

• DE MwSt 19% — Standard rate for most products
• DE MwSt 7% — Reduced rate for food, books, and qualifying categories
• DE MwSt 0% (EU B2B) — For intra-community supplies with reverse charge
• DE MwSt 0% (Export) — For sales outside the EU

Step 2: Configure Fiscal Positions

Fiscal positions in Odoo automate tax rate selection based on the customer's location:

• Germany B2C — Apply 19% or 7% based on product category
• EU B2C (OSS) — Apply destination country's VAT rate
• EU B2B (Reverse Charge) — Apply 0% with reverse charge notation
• Non-EU Export — Apply 0% export VAT

Step 3: Product Tax Assignment

Assign the correct tax group to each product:

• Electronics, clothing, furniture → 19% standard
• Books, food products → 7% reduced
• Mixed bundles → Apply dominant rate or split-line the invoice

Step 4: Invoice Requirements

German VAT invoices (Rechnung) must include:

• Seller's name, address, and USt-IdNr
• Buyer's name and address
• Sequential invoice number
• Invoice date and delivery date
• Line-by-line net amounts, tax rates, and gross amounts
• Total tax amount separated by rate

Odoo's invoice templates can be configured to include all required fields for German compliance.

EU One-Stop-Shop (OSS) in Odoo

Since July 2021, the EU OSS simplifies cross-border B2C VAT for sellers shipping across EU borders.

How OSS Works

Instead of registering for VAT in every EU country where you sell, you register for OSS in one EU country and file a single quarterly return covering all EU B2C sales.

OSS in Odoo Configuration

• Enable EU Intra-Community fiscal position in Odoo
• Configure destination-country VAT rates for each EU member state
• Odoo automatically applies the correct rate based on the shipping address
• Generate OSS-compliant reports for quarterly filing

OSS Rates for Major EU Markets

| Country | Standard Rate | |---------|--------------| | Germany | 19% | | France | 20% | | Netherlands | 21% | | Italy | 22% | | Spain | 21% | | Poland | 23% | | Austria | 20% | | Belgium | 21% | | Sweden | 25% | | Denmark | 25% |

Marketplace-Specific VAT Handling

Each German marketplace handles VAT differently for sellers:

Amazon.de

Amazon collects and remits VAT on behalf of non-EU sellers (marketplace facilitator). EU sellers are responsible for their own VAT. The Amazon Odoo Integration imports settlement reports with VAT breakdowns.

Otto Market

Otto requires sellers to display VAT-inclusive pricing. The Otto Odoo Integration ensures all product prices include 19% or 7% MwSt and generates compliant invoices.

Zalando

Zalando requires VAT-inclusive pricing per market. The Zalando Odoo Integration handles multi-country VAT calculation for all 25 European markets.

Kaufland

Kaufland requires VAT registration and displays gross prices. The Kaufland Odoo Integration manages pricing across 5 Central European markets with correct VAT per country.

Common VAT Mistakes and How Odoo Prevents Them

Mistake: Charging the wrong VAT rate on reduced-rate products Odoo fix: Product-level tax assignment ensures books always get 7% and electronics always get 19%.

Mistake: Not applying reverse charge for EU B2B sales Odoo fix: Fiscal positions automatically apply 0% when the buyer provides a valid EU VAT number.

Mistake: Forgetting to register for VAT when using Amazon FBA in Germany Prevention: If you store inventory in Amazon's German warehouses, you need a German USt-IdNr regardless of where your company is based.

Mistake: Filing OSS returns late Odoo fix: The accounting module generates OSS-ready reports with per-country breakdowns for quarterly filing deadlines.

Frequently Asked Questions

What is the standard German VAT rate? The standard German VAT rate (Regelsteuersatz) is 19%. A reduced rate of 7% applies to food, books, newspapers, and public transport.

Do I need a German VAT number to sell on Amazon.de? Yes, if you store inventory in Germany (including FBA) or exceed the EU distance selling threshold. Since the OSS introduction, the threshold is EUR 10,000 for all EU cross-border B2C sales combined.

How does Odoo handle German VAT on marketplace sales? ECOSIRE's marketplace modules (Amazon, Otto, Zalando, Kaufland) automatically apply correct VAT rates, generate compliant invoices, and import settlement reports with tax breakdowns for reconciliation.

What is the EU OSS and how does it work in Odoo? The EU One-Stop-Shop allows sellers to file a single quarterly VAT return for all EU B2C cross-border sales. Odoo's fiscal position system applies destination-country rates automatically and generates OSS-compatible reports.

Next Steps

Getting German VAT right protects your business from fines and builds trust with German consumers. Contact our team for help configuring Odoo's German VAT settings, or explore our German marketplace integrations to start selling on Amazon.de, Otto, Zalando, and Kaufland.