The third quarter of 2021 has seen German ecommerce enjoy a growth of 14.8%, with total sales amounting to more than €22 billion euros. This growth is especially impressive considering that the third quarter is traditionally the one where we see the least growth for ecommerce. Regular readers of this blog will know that we often champion VAT registration in Germany and, with the German ecommerce market generating this amount of growth, it is easy to see why. Let’s take a look at how ecommerce in Germany is thriving and how you can take advantage of the opportunities that the German ecommerce market creates.

Despite Physical Stores Reopening, German Ecommerce Still Thrives

Both the online sales of products and sales of online services grew in the third quarter (14.% and 14.3% respectively) despite physical stores reopening and lockdown ending. This goes against predictions earlier in the pandemic which suggested that ecommerce growth would slow down once traditional brick-and-mortar stores reopened.

Whilst the sceptics among you may think it is too early for claims that the surge in ecommerce is here to stay, the evidence is mounting. Countries all over Europe, such as Germany, the UK and France, are still seeing growth in their ecommerce industries. Since the fourth quarter is always the strongest, due to the holidays, it is likely that German ecommerce will be worth over €100 billion euros for the first time by the end of the year.

Who Is Benefitting From The Most Growth?

Perhaps unsurprisingly, omnichannel retailers have seen the strongest growth this quarter. This is obviously due to the fact that they are able to benefit from both online and in-store sales. What is interesting, however, is that these retailers are apparently finding that consumers would still rather order online. As we advised at the beginning of the pandemic, it is definitely seeming as though those who diversified their selling channels at the beginning of lockdown are now reaping the reward.

Sellers on online marketplaces have also enjoyed growth of around 15% in the first quarter. It is believed that this will mean that sales from online marketplaces in Germany will surpass €10 billion euros in every quarter in 2021. This will be the first year that this has happened.

So Should I Expand My Business To Germany?

As stated in the introduction, would definitely advise any ecommerce seller to expand their business to Germany. Not only does it have the strongest ecommerce market in Europe after the UK, its central position on the continent means that it is strongly situated should sellers wish to expand deeper into Europe in the future.

In addition, if sellers act now they can certainly benefit from the surge that we will likely see in the fourth quarter. The fourth quarter is always the strongest and with sellers keen to splurge this year after several Christmas’ in lockdown, this quarter promises to be special.

So How Do I Register For VAT In Germany?

For more information on registering for VAT in Germany, we would like to advise you to read our how-to guide for registering for VAT in Germany. However, in short, the registration process in Germany is similar to that of other European countries. The application will need to be processed in German, you will need a fiscal representative if you are not from an EU-state, and yu will need to provide all the relevant details of your business.

There is an additional requirement that Amazon sellers should be aware of and this is the F22 certificate. If you use a facilitating online marketplace to make sales in Germany, such as Amazon, you will have to acquire a F22 certificate. This certificate essentially just confirms that you are VAT registered, and you will have to show it to the online marketplace that is facilitating your sales.

Should You Wish To Register For VAT In Germany, We Can Help

Our long history of working with ecommerce sellers, especially those who use Amazon and eBay, means we can guide you through every step of the German VAT registration process. The process is notoriously difficult compared to other EU countries, so please do not hesitate to send us an e-mail at enquiries@jpaccountant.com or contact us through social media to receive a quote today. 

In addition, we would be more than happy to help you register for UK & EU VAT and file your UK & EU VAT returns, and help you comply with VAT in case your account faces any issues