Transporting Goods to Germany from UK - Register German Company?

joesanders95

Novice Member
Hi All!

I work for an up and coming UK brand, and we are planning to launch in Germany later this year with our own e-commerce using a German third party warehouse to handle fulfilment. I am planning on having stock direct imported from our source (far East) into Germany. But I also have stock in the UK which I want to transfer over to a third party German warehouse. A couple of questions.

The main questions:
1. When I have been planning to transfer the stock over to a German third party warehouse, the freight forwarders now ask for an invoice - but the goods have no purchaser so therefore I have no invoice? As the goods remain in our ownership?
2. Is the solution to set up a German company and register for German VAT / EU EORI?
3. In transferring the goods to Germany I believe I would then invoice our German company the stock value of the goods for custom clearance?
4. What charges/fees I am likely to expect when clearing goods at the German side, as a zero tariff deal was agreed?

Thanks!

Joe
 

klaxhu

Member
What you need is expert business advice, not some opinions on a forum. Especially in the current situation, where even the experts struggle.
It is also likely that you have to pay for that advice. But see it this way, pay some money now, to avoid higher cost later.
 

Greg Hook

Moderator & Reviewer
Yes, agree with klaxhu. The complexities involved in this you need to get specialist advise.
 

inzaman

Moderator
Hi All!

I work for an up and coming UK brand, and we are planning to launch in Germany later this year with our own e-commerce using a German third party warehouse to handle fulfilment. I am planning on having stock direct imported from our source (far East) into Germany. But I also have stock in the UK which I want to transfer over to a third party German warehouse. A couple of questions.

The main questions:
1. When I have been planning to transfer the stock over to a German third party warehouse, the freight forwarders now ask for an invoice - but the goods have no purchaser so therefore I have no invoice? As the goods remain in our ownership?
2. Is the solution to set up a German company and register for German VAT / EU EORI?
3. In transferring the goods to Germany I believe I would then invoice our German company the stock value of the goods for custom clearance?
4. What charges/fees I am likely to expect when clearing goods at the German side, as a zero tariff deal was agreed?

Thanks!

Joe
Even if the UK was still in the EU, as you are shipping within Germany you would have had to register for German VAT as Germany did not opt into the simplified VAT rules.

Post BREXIT the easiest way is to register for a German Company, German VAT , and EU EORI (German but doesn't matter any EU country EORI is good for all of EU). The German company would then be the IOR (do not use DDP incoterms) and pay VAT on import into the EU which you can then offset on the VAT on sales in Germany.
The sales from UK to Germany would be at value but nil VAT as from UK it is now classed as export to the German company. HTH?
 

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