Exporting to Germany

There are a lot of things to consider before you start exporting to Germany. It's essential to find out about local rules and regulations on tax and duty in your intended market.

VAT

The standard rate of VAT in Germany is 19%. Convenience goods and day-to-day services are charged at 7%. Some services including banking, healthcare and non-profit work are VAT exempt.

Packaging and labelling

Packaging has a strong influence on German consumers and informs how they choose products. It is important to check that your packaging is to German tastes. Please also see the German Packaging Act for guidance.

EU standards apply to packaging. Check how to export goods.

Labelling should be translated into German. Certain products, such as food and textiles, have specific labelling requirements.

Payment terms

Standard payment terms for business-to-business transactions are 60 days and 30 days for public authorities. You can claim late payment interest when terms are not met.

Services regulations

If you’re a UK business offering services in Germany, you need to follow regulations about:

• getting an authorisation or a licence to provide a service
• complying with local business regulations
• EEA nationality requirements which could prevent you from providing services in some sectors

Information on rules for selling services and business travel to Germany.

Trade barriers

Trade barriers, such as tariffs or taxes, can raise costs, cause delays, or even stop you from exporting. You should check for any issues that may impact your business when exporting.

Check for any reported barriers to trading with Germany.

Report any trade barriers that are affecting your business.

Routes to market

In a stable and secure market, there's a wide range of routes to market.

Options which may work well for you are:

• agents and distributors - using local agents or distributors is an effective way to develop a presence in Germany due to the size of the market. German is the language of business and fluency is a major advantage for your company when using local partners.
• direct sales - due to the relative closeness of the market, direct sales are possible. However, the need for German language skills should be considered. Ensuring full coverage of the whole market could be a challenge.
• e-commerce - selling online or through e-marketplaces may be a good option for your company. It’s relatively cheap and easy to deliver products into Germany. The Department for Business and Trade (DBT) can suggest online marketplaces to help you get started. DBT’s E-Exporting Programme can also help. The British Chamber of Commerce in Germany is a useful source of further information on routes to market in Germany. You can find more useful information on the Germany Trade and Invest and German-British Chamber of Industry & Commerce websites.

Business culture

German firms are often family-owned and take a longer-term view. They value personal relationships highly.

Often businesses will not necessarily go for best price, but for long-term shared vision or relationship.

Business people will be well prepared for meetings, and will have carefully researched your products and services.

Intellectual property

Intellectual property (IP) rights are territorial and rights granted in the UK do not provide protection elsewhere. You should consider getting IP protection abroad if you want to trade overseas or sell to overseas customers via the internet.

The Intellectual Property Office provides practical information to help you protect, manage and enforce your IP abroad. Further support for British businesses can be found through a network of IP attachés, based in key UK export markets.