Dropshipping in Germany: the paperwork you cannot skip
4 min readPublished Team Zentorix
Most stores that fail in Germany do not fail on advertising. They fail on a warning letter over a missing imprint or a registration nobody told them about. Here is the list, in the order it usually becomes relevant.
This article explains the usual duties in plain language. It is not legal advice — for your own case, ask a lawyer or a tax adviser.
Business and tax
Selling with the intention of profit makes you a business from the first order. You register a trade, fill in the tax questionnaire and get a tax number. If you stay under the small business thresholds you do not show VAT on your invoices — and you cannot reclaim it either.
Once you sell to consumers in other EU countries above the EU-wide threshold, the VAT of the customer's country applies. The one-stop shop procedure exists so you can declare that centrally instead of registering in every country.
What your shop pages must contain
- An imprint that is reachable from every page, with a real address and contact details
- A withdrawal policy with the fourteen-day period and a model withdrawal form
- Prices including VAT, with shipping costs stated separately and clearly
- Delivery times that are specific enough for a customer to plan with
These four points are what most warning letters are about, and all four are fixed in an afternoon. The expensive part is not the work, it is the letter you get before you do it.
Product safety when you import
If goods come from outside the EU and you put them on the market, the law treats you as the importer. That brings duties: a responsible person inside the EU, safety information and warnings in the language of the country, and the ability to show where the product came from.
This is the reason many sellers switch to suppliers with EU stock: the paperwork moves to someone who does it for a living.
The registers people forget
- Packaging: anyone who sends parcels to end customers in Germany has to be registered and licensed
- Electronics: devices need a registration before the first sale, and a producer number in your shop
- Batteries: separate registration, including for devices with a battery inside
These registrations are annoying, cheap and quick compared to the fines. Do them before the first campaign, not after the first hundred orders.
The short version
Register the trade, get the tax number, put imprint and withdrawal policy on the site, state prices and delivery times honestly, and register for packaging before you ship. Everything after that is a matter of the products you choose — and choosing products is the part that is actually fun.
Frequently asked questions
Do I need a trade registration for dropshipping?
Yes, as soon as you sell with the intention of making a profit. The registration at your local trade office costs a small fee, and the tax office then sends you the questionnaire that gets you a tax number.
What is the small business rule worth to me?
Below the current thresholds you do not charge VAT and cannot deduct input tax. It keeps your invoices simple, and it becomes a disadvantage the moment your purchase prices carry a lot of VAT you would otherwise reclaim.
Who is responsible for product safety if I only forward orders?
If the product comes from outside the EU and you place it on the market, you are the importer in the eyes of the law. That means the safety documentation, the contact details on the product and the responsible person inside the EU are your problem, not the supplier's.