The German tax authorities are tightening requirements for foreign entities starting this year. The registration process is now more detailed and places greater emphasis on proving economic activity.
What is changing and what to prepare for:
- Thorough verification: Authorities (especially in Chemnitz) now more frequently require detailed documentation of contracts with German partners or proof of physical goods flow even at the start of registration.
- Electronic communication: There has been further restriction on paper submissions. Without properly set access to the German tax portal (Elster), communication with authorities is practically impossible.
- Extension of deadlines: Due to increased administrative burden on the part of German authorities, we recommend starting the registration process 4–6 weeks earlier than in the past.
Our tip: Changes in regulations may lead to more frequent rejections of incomplete applications. If you plan to enter the German market, we will prepare the documents for you to meet the current requirements for 2026.