Print on demand and VAT: what applies to sellers in Germany

Print on demand: a provider prints your design after the order. If you sell to end customers, you are, as in dropshipping, the supplier for VAT (§ 3 (1) UStG). This article covers only that model; if a platform sells your design in its own name and merely pays you a fee, the classification depends on the contract.

Last updated: 27 October 2026

In short

Chain: Print partner, you and customer form a chain transaction if goods ship directly (§ 3 (6a) UStG).
Input VAT: Deductible on the partner's invoice if you hold a proper invoice (§ 15 (1) no. 1 UStG).
Small business: Exempt up to €25,000 (previous year) and €100,000 (current year); no input VAT deduction (§ 19 UStG).

Who is the supplier in print on demand?

If you sell in your own shop or on a marketplace in your own name to the end customer, your delivery is a delivery by a business within § 3 (1) UStG: it, or a third party on its order, gives the recipient the power of disposal. If the print partner ships the goods directly to your customer, a chain transaction exists in which transport is attributed to only one delivery (§ 3 (6a) UStG). If the first business in the chain ships the goods, transport belongs to its delivery (sentence 2). Your delivery follows it and is treated as made where the transport ends (§ 3 (7) sentence 2 no. 2 UStG). For customers in Germany that is Germany. The delivery is taxable if you act as a business making a delivery in Germany for consideration (§ 1 (1) no. 1 UStG).

Can I deduct input VAT on the print partner's invoice?

If a service provider in Germany charges you VAT, you can deduct it as input VAT if you hold an invoice issued under §§ 14, 14a UStG (§ 15 (1) no. 1 UStG). The rate is 19 percent, for certain goods 7 percent (§ 12 UStG). As a small business owner you have no input VAT deduction (Finanzamt Hessen).

If the provider is in another EU country, it depends on what it owes you: for services of a business established in the rest of the Community that are taxable in Germany, the tax arises at the end of the return period in which the services were performed (§ 13b (1) UStG); the recipient owes the tax if it is a business (§ 13b (5) UStG). Whether your partner makes a delivery or provides a service is decided by the individual case. If it delivers goods to you that come from another EU country into Germany, an intra-Community acquisition by you may arise (§ 1 (1) no. 5, § 1a (1) UStG), whose tax you can deduct as input VAT (§ 15 (1) no. 3 UStG). That is a question for your tax adviser or the tax office.

What applies to customers in other EU countries and third countries?

If the products go to consumers in another EU country, an intra-Community distance sale may exist (§ 3c (1) UStG): the place is the country where transport ends. A de minimis threshold of €10,000 in the previous and the current year applies only to businesses with a seat in only one member state (§ 3c (4) UStG). Above it you pay the VAT of the destination country; instead of registering in each country you can take part in the OSS (§ 18j UStG). More: the EU OSS threshold of 10,000 euros and OSS return.

If the goods come from a third country into the EU, the import rules apply: imports are subject to import VAT (§ 1 (1) no. 4 UStG), and for consignments up to €150 intrinsic value there is the procedure under § 18k UStG. The details are in the article Dropshipping and VAT in Germany.

How does print on demand work through a marketplace?

A platform operator is liable under conditions for unpaid tax from your delivery (§ 25e UStG), but as a rule not if you hold a valid VAT ID at the time of delivery (§ 25e (2) UStG; exceptions in § 25e (2) sentence 2 and (4) UStG). In special cases it is itself treated as the supplier (§ 3 (3a) UStG). More: Kaufland marketplace: VAT for sellers.

What applies to the invoice to the customer?

If you make a delivery, you are entitled to issue an invoice (§ 14 (2) UStG). The law names a duty to do so, among other cases, for services to other businesses for their business. As a small business owner you must not show VAT separately and must refer to the exemption under § 19 (1) UStG (Finanzamt Hessen).

Which mistakes happen often?

Not clarifying the model. Whether you or the platform supplies depends on in whose name the sale is made.
Deducting input VAT from invoices without the required details. The deduction requires a proper invoice.
Overlooking EU sales. Above €10,000 a year the destination country applies (§ 3c (4) UStG).
Showing VAT as a small business owner. That is not permitted (Finanzamt Hessen).

How VAT GPT helps

If you have to report VAT, VAT GPT helps in three steps:

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Frequently asked questions

Do I have to pay VAT in print on demand? If you are not a small business owner and sell in your own name to end customers, yes: deliveries by a business within Germany for consideration are subject to VAT (§ 1 (1) no. 1 UStG).

Can I deduct the VAT on the print invoice? Yes, with an invoice issued under §§ 14, 14a UStG (§ 15 (1) no. 1 UStG). Not as a small business owner (Finanzamt Hessen).

What applies if my print partner is abroad? It depends on whether it delivers or provides a service. For services of a business from another EU country the recipient can owe the tax (§ 13b UStG). If it delivers goods from another EU country into Germany, an intra-Community acquisition may arise (§ 1a UStG).

When do I have to consider VAT of other EU countries? If distance sales to consumers in other member states exceeded €10,000 in the previous year or exceed it in the current year (§ 3c (4) UStG).

Does this also apply if a platform sells my design in its own name? This article makes no statement on that; the classification depends on the contract.