Selling to German Customers: VAT Threshold, LUCID and the Package Itself
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by Verpakkingdeals.nl
7 min reading time
An order with a German address in your webshop: what do you arrange beforehand? About the VAT threshold of 10,000 euros, the German Packaging Act with LUCID registration, and what changes to your box, filling, and tape.
The first order with a German address feels like a small celebration: your webshop is being found across the border. Until you realize that you don't actually know if you need to arrange anything before that package goes out. For the package itself, not much changes. For the paperwork surrounding it, it does. Two things almost always come up: the VAT threshold for sales to consumers in other EU countries, and the German Packaging Act. Below is what you need to know about that, and what it means for the box, the filling, and the tape you use.
The VAT threshold of €10,000
As long as you sell little to other countries, you can continue to charge Dutch VAT. According to the Chamber of Commerce, a joint threshold amount of €10,000 per year applies to distance sales within the EU: all sales to consumers in other EU countries add up. If you exceed this, you then charge the VAT of your customer's country from that moment on — even if it happens in the middle of the year, on the order you push across the border. If you stay below the threshold the following year, you can revert to Dutch VAT from January 1st.
Above the threshold, you don't have to register separately in each country. That's what the One Stop Shop scheme is for: one declaration via My Tax Authorities Business with which you remit foreign VAT. This is a choice, not an obligation — you can also register per country, but for most small webshops, that's much more work.
Practically, this means: keep track of your turnover per country from your first German or Belgian order, and set a reminder in your administration well before that €10,000. You don't want to discover halfway through December that you've been charging the wrong VAT rate for two months. Discuss the details with your accountant; the rules are in the nuances, and we are not tax specialists.
LUCID: arrange before your first package
The second point touches on precisely what we do understand: packaging. Anyone placing packaging on the German market must report this to the Zentrale Stelle Verpackungsregister (Central Agency Packaging Register) in accordance with the German Packaging Act (Verpackungsgesetz, or VerpackG for short), by registering in the LUCID register. In addition, you enter into a contract with a so-called dual system that arranges the collection and recycling of these packages; you pay a contribution for this that depends on the material and quantity. This is stated by RVO, the Netherlands Enterprise Agency, in its information on packaging requirements in Germany.
The devil is in the details: RVO explicitly states that this also applies to very small packages or small numbers of packaged products. So there is no "I only send five a month" exception you can rely on. Packaging includes not only your shipping box, but also the filling, tape, and the sales packaging around the product itself.
What this means for your purchasing: the fewer different materials you use and the lighter you package, the simpler your declaration becomes. A cardboard box with cardboard or paper filling is administratively clearer than a box with foil, foam, a plastic bag, and three types of tape. Always check the RVO website or the Zentrale Stelle itself for current requirements and the list of dual systems — rules change, and this article is a starting point, not legal advice.
What changes to your package
A package to Hamburg undergoes more transhipment moments along the way than a package to Haarlem: longer routes, more sorting centers, more times it's lifted. This is the main reason to choose slightly sturdier packaging for cross-border traffic than you would for domestic shipping.
Three things that make the biggest difference:
Less play in the box. The less your product can shift, the less can go wrong. A size smaller with good filling is almost always better than a size larger with air.
Better sealing. Two strips of tape over the seam and the sides included — half a strip won't survive an extra sorting round.
Visibly sealed. For a longer route, a seal or verifiable closure is useful if a customer claims the box was open.
Specifically from our assortment, with the sizes and prices as they appear on the product page:
If you ship flat items, a bubble envelope of 22 x 17 cm (€0.90) is often sufficient. Please note that letterbox sizes and rates differ per country and per carrier: what goes as letterbox mail in the Netherlands does not automatically fall into the same category in Germany. Check with the carrier you use before stocking up on a hundred boxes based on Dutch dimensions.
Seals, returns, and the question "has this been opened?"
For a longer route, you are more likely to be asked if a package has been opened along the way. With VOID security seals, 60 pieces for €9.95, it can be seen at a glance: the sticker leaves a visible trace as soon as someone pulls it off. That costs you less than 17 cents per package and saves discussions where no one can prove anything.
If you work with fixed quantities, tape becomes a hidden cost. A set of 6 rolls of tape costs €21.00; a tape dispenser with 2 rolls €9.95. With a dispenser, you tape faster and straighter, and that saves more than you think for a hundred packages.
A short checklist for your first German order
Keep track of your sales to consumers in other EU countries and set a limit in your administration well below €10,000.
Discuss with your accountant if and when you want to use the OSS scheme.
Find out what the German Packaging Act means for your situation: registration in LUCID and a contract with a dual system, even for small quantities.
Limit the number of materials you use: that saves administration and costs.
Choose one box size smaller with better filling instead of one size larger.
Check the sizes and rates of your carrier for the country you are shipping to.
Document your working method so that the second and hundredth German order look the same as the first.
Get started
Selling across the border is not a big leap for most webshops: your administration becomes slightly more precise and your packaging slightly sturdier. You can find the materials for this in Packaging & Shipping, in Letterbox Packaging and at Tape. If you ship larger quantities, look at Bulk Packaging for Webshops, where boxes and envelopes come in bundles.
Don't know which box size fits your product, or would you like us to help you think about a fixed set of packaging for your international orders? Email us at info@verpakkingdeals.nl with the dimensions and weight of your product, and we'll help you brainstorm. For the fiscal and legal aspects, we refer you to your accountant and to the information from the Chamber of Commerce and RVO — there you will find the most current information.
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