Marketplace VAT liability in Germany (§ 25e UStG)

You sell through a marketplace and it asks for your VAT ID? Section 25e UStG makes the operator liable for the VAT that a trader has not paid on a supply. The operator is not liable if you hold a valid VAT ID issued by the German Federal Central Tax Office (BZSt) at the time of the supply and the operator did not know, and should not have known, that you are not meeting your tax obligations, or not in full (section 25e(2) UStG).

Last updated: 27 October 2026

In brief

Rule: Whoever supports the supply of an item by means of an electronic interface is liable for the unpaid tax on that supply (section 25e(1) UStG).
Condition for the operator's relief: a valid VAT ID of the trader issued by the BZSt at the time of supply, and no knowledge or negligent ignorance on the operator's side.
Notification: If a trader does not meet their tax obligations, or not to a substantial extent, and other measures promise no immediate success, the tax office may notify the operator; after that, the operator can be liable for new transactions (section 25e(4) UStG).

What does section 25e UStG say?

Paragraph 1 says that whoever supports the supply of an item by means of an electronic interface (the operator) is liable for the unpaid tax from that supply, and that this does not apply in the cases of section 3(3a) UStG. An electronic interface is an electronic marketplace, platform, portal or similar (section 25e(5) UStG).

The law shows why your VAT ID matters to a marketplace: the operator is not liable under paragraph 1 if the supplying trader holds, at the time of supply, a valid VAT ID issued by the Federal Central Tax Office under section 27a (section 25e(2) sentence 1 UStG). That does not apply if the operator knew, or with the care of a prudent businessperson should have known, that the trader is not meeting their tax obligations, or not in full (section 25e(2) sentence 2 UStG).

The Federal Central Tax Office issues a VAT ID to traders on application (section 27a(1) sentence 1 UStG).

What must the marketplace record about you?

For supplies whose transport starts or ends in Germany, the operator must record, among other things: the full name and address of the supplying trader, the trader's VAT ID, the time and amount of the transaction and a description of the goods (section 22f(1) UStG). The records must be kept for ten years and sent electronically to the tax office on request (section 22f(4) UStG).

That is the duty under VAT law. A different reporting duty of platforms concerns sellers' data reported to the BZSt, more in DAC7: platform reporting for sellers. How another marketplace handles VAT is shown in Kaufland marketplace VAT.

When does the tax office notify the marketplace?

The law provides: if the supplying trader does not meet their tax obligations, or not to a substantial extent, the competent tax office may notify the operator, if other measures promise no immediate success (section 25e(4) sentence 1 UStG).

After receipt of the notification, the operator is liable, in the cases of paragraph 2, for the tax on transactions of paragraph 1 where the underlying transaction was concluded after receipt (sentence 2). Liability does not arise if the operator proves, within the period set by the tax office, that the trader can no longer offer goods through the interface (sentence 3). The law in this paragraph does not regulate more than these consequences for the offer on the interface; what a marketplace provides in its own terms beyond that is not in section 25e.

When is the marketplace itself the supplier?

The liability does not apply in the cases of section 3(3a) UStG. In those cases the operator is treated as if it had supplied the goods itself. Which cases those are and what that means for your VAT is explained in VAT collected by Amazon: what it means for you.

Common mistakes

Not applying for the VAT ID. In the law it is the yardstick for the operator's relief (section 25e(2) UStG).
Not filing and not paying VAT. If other measures promise no immediate success, the tax office may notify the operator (section 25e(4) UStG).
Confusing the marketplace's liability with your tax debt. You still owe the tax; the operator is liable in addition.

How VAT GPT helps

VAT GPT is the tax software for Amazon and eBay sellers in Germany: your OSS return first, then every other tax you owe, calculated and filed in one place.

You upload your Amazon and eBay CSV reports, and VAT GPT breaks the VAT down for Germany and the EU (OSS).
From the figures, VAT GPT prepares the VAT return (monthly or quarterly).
For sole proprietors, VAT GPT fills in the questionnaire for tax registration and sends it to the tax office to obtain a tax number.

With VAT GPT Pro you send the VAT return through ELSTER and the OSS return to the BZSt. There is Free, Go (30 days free with all Pro features) and Pro (€49 per month or €444 per year, including VAT). Try for Free Now

Frequently asked questions

Why does a marketplace ask for my VAT ID? Under section 25e(2) UStG the operator is not liable if you hold a valid VAT ID issued by the BZSt at the time of supply, unless it knew or should have known that you are not meeting your obligations, or not in full.

Who owes the VAT, you or the marketplace? You, as the supplying trader. The operator is liable in addition under the conditions of section 25e UStG.

What may the tax office tell the marketplace? That you are not meeting your tax obligations, or not to a substantial extent, if other measures promise no immediate success (section 25e(4) UStG).

Does this apply if the marketplace itself is treated as the supplier? No, in the cases of section 3(3a) UStG the liability under paragraph 1 does not apply.

How long must the marketplace keep the data? Ten years (section 22f(4) UStG).