Taxera
Flag of GermanyVAT groups GermanyOptional, automaticLast reviewed October 2026

VAT groups in Germany: Organschaft explained

German VAT groups arise automatically when the legal conditions are met. The controlling company (Organträger) is the taxpayer and files one return for the group.

General information only, not tax advice. Rules change, so check the official sources at the bottom of this page before you act.

The regime

VAT group (Organschaft), section 2(2) no. 2 of the VAT Act (UStG)

Who can join

A legal entity that is financially, economically and organisationally integrated into the controlling company. There is no application: the group exists once the conditions are met.

How it works

Configure the group in Taxera → Prepare each member from ERP data → Consolidate at group level, with adjustments → Review the group total → File the group return

Key points and dates for Germany

  1. Automatic
    No registration or election is needed once the integration conditions are met
  2. Scope
    Effects are limited to the parts of the business located in Germany
  3. Proposed
    A draft law would require an active election from 2030. It is a proposal, not law

What the group return covers

Supplies between group members are generally not taxable. The Organträger reports the whole group's VAT in one return and is the contact for the tax office.

What your ERP has to deliver

Taxera needs the VAT data of every member company code, tagged to the right group, so each member's figures can be prepared and then consolidated. Entities outside the group stay on the standard VAT return.

The process, step by step

ERP data (all members)
Taxera: member figures
Group consolidation and adjustments
Group total for filing

Practical insights

  • Check whether each entity truly meets the integration tests, because the group arises automatically and an error affects every return.
  • Keep an eye on the draft election rule and on recent guidance from the Federal Ministry of Finance.

Common pitfalls

  • Treating group members as separate taxpayers while the group exists in law.
  • Assuming foreign branches are part of the German group.

Linked obligations in Germany

VAT returns: standard returns for entities outside the group
e-Invoicing and SAF-T: same ERP data, same integration

VAT groups Germany: questions, answered

Official sources

Keep this guide

Download the Germany VAT groups guide as a PDF. It has the same content as this page.

More VAT group guides

All VAT group countriesVAT groups FranceVAT groups NetherlandsVAT groups BelgiumVAT groups ItalyVAT groups SpainVAT groups PolandVAT groups IrelandVAT groups LuxembourgVAT groups PortugalVAT groups RomaniaVAT groups LatviaVAT groups MaltaVAT groups Czech RepublicVAT groups United KingdomVAT groups SloveniaAll countries in the Tax Tracker

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