When you sell products through Digistore24 as a vendor or promote products as an affiliate, you act as an entrepreneur. This applies regardless of whether your activity is commercial or freelance. Here you will learn when you need to register a business, which tax information Digistore24 needs, and what applies to small businesses.
Business registration requirement
Whether you need to register a business (Gewerbe) depends on the type of your activity:
-
Commercial activity
You must register a business. -
Freelance activity
If your activity is one of the liberal professions (freie Berufe), you do not need to register a business. This is regulated by § 6 GewO (German Trade Regulation Act).
Important: VAT applies regardless of business registration
Even without a registered business, you are an entrepreneur for VAT purposes. For VAT, commercial and self-employed professional activities both count as entrepreneurial. You therefore always need a tax registration (tax number or VAT ID) – regardless of whether you have registered a business.
The rules on business registration apply to Germany. Please clarify questions about your activity with your tax advisor.
Tax information for your payout
As a reseller, Digistore24 may need your tax information in order to make payouts to you.
You can start using Digistore24 to sell and promote products even before providing this information. However, Digistore24 can only make payouts to you after you have provided your VAT ID or tax number.
If your company is located outside of Europe, Digistore24 does not need your tax information.
See also VAT calculation at Digistore24 GmbH.
When does Digistore24 need your VAT ID or tax number?
| Reseller contract with | Company location | VAT ID or tax number required |
|---|---|---|
| Digistore24 GmbH (also together with Digistore24 Inc.) | Europe | Yes |
| Digistore24 GmbH (also together with Digistore24 Inc.) | Outside Europe | No |
| Only Digistore24 Inc. | Europe or outside Europe | No |
European Small Business Regulation
If your company is located in Europe and your annual turnover is below certain thresholds, you may apply the European Small Business Regulation. As a small business, you generally do not have to pay VAT – but you remain an entrepreneur for tax purposes and need a tax number.
The following conditions apply for small businesses:
-
Your company is located in Germany
You must provide your tax number so that Digistore24 can make payouts to you. The special regulation according to §19 Abs. 3 UStG applies. Accordingly, no VAT is levied if the turnover in the previous calendar year does not exceed a specified amount. More information can be found at https://www.kleinunternehmer.de/ustg.htm. -
Your company is located in Europe, outside Germany
You must provide your tax number so that Digistore24 can make payouts to you. Generally, the tax office in the country where your company is located does not levy VAT on small businesses. -
Your company is located outside Europe
Please contact your local tax authority.
Note
Are you a small business and wondering why Digistore24 shows VAT on invoices? Information on this can be found in the article VAT calculation at Digistore24 GmbH.