VAT Liability in Online Trade: What Online Sellers in Germany Need to Know

Mai 22, 2026 EU-Umsatzsteuer-Update

The rapid growth of e-commerce over more recent years has transformed the way goods are bought and sold cross-border. Online marketplaces and digital platforms now enable businesses of all sizes to reach customers worldwide with only a few clicks. At the same time, tax authorities have become increasingly concerned about VAT non-compliance in online trade, particularly in the area of cross-border B2C distance sales.

To address these risks, specific VAT liability rules came into effect in 2019, when paragraphs §§ 22f, 25e and 27 Abs. 25 were introduced into the German VAT Act (Umsatzsteuergesetz – “UStG”). These provisions are designed to ensure that VAT arising from online sales is properly declared and paid, while also imposing obligations on marketplace operators and distance sellers.

VAT Risks in Online Sales

Online trade presents several compliance challenges for VAT authorities. Sellers often operate from different jurisdictions, use multiple platforms, or fail to register correctly for VAT purposes, as is often the case for non-EU vendors. In some cases, VAT collected from consumers is not remitted to the VAT authorities at all.

To combat this, § 25e UStG introduced a liability regime for operators of electronic marketplaces (such as Amazon or eBay). Under this provision, marketplace operators may become liable for unpaid VAT resulting from transactions facilitated through their platforms. The rules apply particularly where the platform supports the sale of goods and the underlying seller does not meet its VAT obligations.

At the same time, § 22f UStG imposes documentation and record-keeping obligations on marketplace operators. Platforms must maintain detailed information regarding sellers using their marketplace, including their VAT ID number, seller details and transaction records such as the date of sale and value of same. This creates greater transparency for VAT authorities and increases pressure on online sellers to maintain proper VAT compliance and record-keeping.

Liability for Distance Sellers and Marketplace Operators

The liability rules primarily target electronic marketplace operators, but they have significant consequences for online sellers as well.

According to § 25e UStG, the operator of an electronic interface can be held liable for unpaid VAT if it supports transactions carried out by non-compliant sellers. However, liability may generally be avoided if the seller possesses a valid VAT identification number and the marketplace operator has fulfilled its documentation obligations.

For distance sellers, this means that VAT registration in Germany and proper compliance procedures are essential. Sellers operating through platforms such as online marketplaces must ensure that:

  • VAT registrations are valid and up to date;
  • VAT identification numbers are correctly provided;
  • VAT returns and payments are submitted on time; and
  • transaction data is properly documented.

Failure to comply can result not only in VAT assessments against the seller, but also  exclusion from online platforms if the marketplace operator wishes to avoid its own liability exposure.

Administrative Requirements and the USt 1 TK Form

An important administrative element of the German VAT liability framework is the official “USt 1 TK” form.

This form is used by the German VAT authorities to notify marketplace operators that a seller is not complying with its VAT obligations. Once such a notification is issued, the marketplace operator may become liable for future unpaid VAT connected to that seller’s transaction, unless the seller is excluded from the platform within the deadline specified by the tax office.

The notification generally remains effective indefinitely unless it is withdrawn or revoked by the German VAT authorities. As a result, sellers under question may face severe commercial consequences, and losses of sales.

The framework therefore creates a strong incentive for both sellers and platforms to maintain robust VAT compliance systems and internal controls.

The Recent BMF Update

On 20. May 2026, the German Federal Ministry of Finance (BMF) issued guidance and slightly revised the USt 1 TK form. The amendments to the template form consist mainly of administrative updates: the field for the official seal has been removed, as has the statement that the document was automatically generated and valid without a signature. Apart from these changes, the form itself must continue to follow the existing template format. In addition, the section explaining legal remedies must be updated with the appropriate wording required for the specific method of notification, using the currently valid version.

For online sellers,  the message remains clear:

  • VAT compliance is more closely monitored;
  • marketplace operators are under pressure to verify that their sellers are compliant, or they risk liability themselves;
  • non-compliant sellers face a greater risk of platform exclusion; and
  • accurate VAT registration and reporting have become critical operational requirements.

Schlussfolgerung

Germany’s VAT liability framework for online trade demonstrates how tax authorities are adapting to the realities of digital commerce. Through §§ 22f and 25e UStG, the responsibility for VAT compliance does not rest solely with the seller, but rather marketplace operators also play a central role in ensuring proper tax collection.

For distance sellers and online marketplace operators alike, proactive VAT compliance is no longer simply a best practice — it is an essential requirement for continued participation in the digital marketplace.

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