Germany · VAT

Germany VAT 2026: Big Changes Under the EU Tax Amendment Act

Germany is implementing significant new VAT procedures from 2026 under the EU 2025 Tax Amendment Act. Here is what every business operating in Germany needs to know.

What is changing for German VAT in 2026?

Germany is implementing a wave of new VAT procedures from 2026, largely driven by the EU 2025 Tax Amendment Act (Steueränderungsgesetz). The changes touch domestic invoicing, refunds for foreign businesses, registration handling at the Bundeszentralamt für Steuern (BZSt), and marketplace liability. Together they represent the biggest tightening of German VAT administration in years.

Whether you are a German-established company, a foreign business reclaiming German VAT, or an online seller using a marketplace, these updates will affect how you invoice, file, and recover tax.

1. New VAT procedures under the EU 2025 Tax Amendment Act

The EU 2025 Tax Amendment Act harmonises several German VAT rules with EU-wide standards. The headline effects for 2026 include stricter documentation requirements, updated place-of-supply handling for certain services, and closer alignment of German reporting with the broader EU digital reporting roadmap.

2. E-invoicing for domestic B2B transactions

Germany has made structured electronic invoicing mandatory for domestic B2B transactions. From 2026, businesses must be able to issue and receive e-invoices in an approved structured format:

• XRechnung — the XML-based standard already used for public-sector invoicing
• ZUGFeRD — a hybrid format combining a human-readable PDF with embedded structured XML data

Simple PDF or paper invoices no longer satisfy the requirement for affected B2B transactions. All VAT-registered businesses must at minimum be able to receive compliant e-invoices.

3. Tightened VAT refund rules for foreign businesses

Foreign businesses reclaiming German input VAT face stricter scrutiny in 2026. Refund applications now require more complete supporting documentation, and incomplete or late submissions are more likely to be rejected outright. Businesses should ensure their invoices meet German formal requirements before filing a refund claim.

4. Changes to the BZSt VAT registration process

The Bundeszentralamt für Steuern (BZSt) has updated its VAT registration workflow. Expect more digital-first processing, additional identity and substance checks, and longer lead times for new registrations. Businesses planning to register for German VAT should build extra time into their go-to-market schedule.

5. Stricter marketplace liability rules

Online marketplaces operating in Germany face expanded liability for the VAT obligations of their third-party sellers. Platforms are increasingly treated as the deemed supplier for many B2C transactions, and must verify seller VAT data more rigorously. Sellers should ensure their registration details held by marketplaces are accurate and up to date to avoid suspension.

Conclusion

Germany's 2026 VAT changes raise the bar for compliance across invoicing, refunds, registration, and marketplace activity. Businesses that adopt structured e-invoicing early and tighten their documentation will adapt smoothly, while those that delay risk rejected refunds, registration bottlenecks, and marketplace disruption.