German address only, no registered office: What does this mean for taxes?

Why a German address raises questions

Many international companies want to sell their products in Germany without setting up an official company headquarters here. Often only a German address for returns utilised. But when does this lead to tax obligations in Germany?

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Difference between address and registered office

A simple Return address or a Virtual office in Germany does not automatically mean that a company is liable for tax here. The decisive factor is whether the address is Operating site applies.

• Virtual office = Postal acceptance, business address, Google Maps entry
• Company headquarters in Germany = legally registered branch
• Operating site = fixed business premises from which business is conducted

If only letters are received and forwarded, there is generally no permanent establishment.

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Tax obligations for sales

Taxes may be incurred even if the company is not domiciled in Germany. The decisive factor is, where the service is provided and who the customers are.

• Value added taxIf products are sold to German customers, VAT liability may arise. Foreign companies must then register for tax in Germany.
• Income taxThis only applies if there is a genuine permanent establishment in Germany.

A virtual office alone does not trigger an income tax liability.

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Turnover limits and registration

Clear rules apply to international retailers:

• Sales to German private customers via 10,000 € per year (within the EU) lead to VAT liability in Germany.
• For Non-EU companies (e.g. from China or the USA), the following generally applies: VAT must be paid immediately in Germany, irrespective of a turnover limit.

This means that tax obligations can arise from the very first euro of turnover.

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Advantages of a virtual office in Germany

Even if a German address does not mean automatic tax liability, a virtual office offers many advantages:

• Reputable German company address for business documents
• Mail acceptance and forwarding for customers and authorities
• Entry in Google Maps for better findability
• Confidence advantage with German business partners

A virtual office is the ideal solution for establishing a presence without having to set up a branch.

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Conclusion: Stay flexible in terms of tax

A Virtual office in Düsseldorf is a safe way to establish a presence in Germany without directly incurring complex tax obligations. It is important to choose between a pure address and one genuine permanent establishment to distinguish.

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Your next step: Make Germany your market

If you have a German address for your company, offers Virtualoffice-Germany the perfect solution. Benefit from the advantages of a virtual office in Düsseldorf - including mail acceptance and Google Maps entry - and show your presence in Germany. You can find the contact form directly below this article.