Buying from a German wholesaler with a VAT ID: VIES and reverse charge explained

What is a VAT ID and what does it look like?

A VAT identification number is used by businesses that trade goods or services with companies in other EU countries. It is not the same as your national tax number, even if the two look alike in some countries.

Every VAT ID starts with a country code, followed by a string whose format differs by country. A few examples: Germany DE plus nine digits, Austria ATU plus eight digits, the Netherlands NL, nine digits, the letter B and two digits, Belgium BE plus ten digits starting with 0 or 1, France FR, two check characters and the nine-digit SIREN, Italy IT plus eleven digits, Poland PL plus ten digits.

In many countries you apply for the number at the tax office; in some it is issued automatically. Your tax authority or adviser can tell you how it works where you are.

VIES: how the number is checked

VIES is the European Commission's validation service. It asks the tax administration of the relevant country whether a VAT ID is valid. Depending on the country, it also shows the company's name and address.

At MDH this check runs automatically as soon as you enter your VAT ID during registration. The form shows straight away whether the number has been confirmed. If VIES is temporarily down, which happens now and then, we verify the number manually later.

A common pitfall: in some countries a new number is issued but not yet activated for intra-EU trade, and VIES reports it as invalid. Check your own number on the European Commission's VIES page before you register.

Reverse charge in plain language

When a German wholesaler supplies goods to a business with a valid VAT ID in another EU country, this is an intra-Community supply. It is exempt from VAT in Germany, so MDH issues the invoice without German VAT.

That does not make the goods tax-free. VAT is simply charged where the goods arrive: as the buyer, you report the purchase in your own VAT return and account for VAT at your country's rate. This is called an intra-Community acquisition; in everyday speech it is often simply called reverse charge.

For businesses entitled to deduct input VAT, this usually balances out in the same return. How it works in your country and which reports are required is a question for your tax adviser.

Important: without a valid VAT ID we charge German VAT at 19 %, even if your business is based abroad.

What the invoice shows

An invoice for an intra-Community supply contains the usual details plus the seller's and the buyer's VAT IDs and a note that the supply is exempt. It is sent by email and readable in German or English.

Make sure the company name and address in your trade account match exactly what is stored for your VAT ID. Differences lead to queries on both sides.

Proof of business from your country

Along with the VAT ID, you upload proof of your business when registering. In Germany that is a trade registration or a commercial register extract. From other countries we accept the equivalent extract from the national business register, such as an Austrian Firmenbuch extract or trade licence, or a Dutch KvK uittreksel.

The document can be a PDF, JPG or PNG and should be complete and easy to read. Our guide to trade accounts and proof of business walks through the form field by field.

Delivery to other EU countries: how it works

Within Germany we ship by DHL parcel or freight as standard. We deliver to the other EU countries as well, but settle the details case by case: parcel or pallet, costs and timing are agreed with you before you order. At checkout, any delivery address outside Germany shows exactly this note.

Alternatively, you can collect from our Mettmann warehouse yourself or with your own carrier. For a VAT-exempt supply there also has to be evidence that the goods actually reached your country; we arrange this evidence with you as part of your delivery request.

A note on the products: our range is intended for the EU single market and comes from official distribution channels. Documents such as CE declarations of conformity for toys or halal certificates for Samyang Buldak are available on request, and we welcome special requests on quantities or paperwork. Before selling, still check the labelling requirements in your country, for example the language on the label.

The process step by step

1. Register: choose your country, enter your VAT ID, add company details and upload your register extract. It takes about 3 minutes.

2. Approval: we check your documents and VAT ID, usually within 1–2 working days. Prices and volume tiers then become visible.

3. Arrange delivery: email info@mdh-distribution.com or send a WhatsApp message to +49 1556 3188241 with the products, rough quantities and delivery address you have in mind. We reply in German or English.

4. Order: once shipping method and costs are agreed, order in the shop as usual or collect in Mettmann.

Retailers from several EU countries already buy from us this way. Our wholesale for European retailers page gives an overview by country, for example for the Netherlands.

What about retailers outside the EU?

The VAT ID rules do not apply to Switzerland and other non-EU countries, because goods are exported and cleared through customs. Retailers from Switzerland should contact us by email or WhatsApp before registering; we clarify delivery and export case by case.

For any other questions about registering from abroad, the same contact channels apply.