B2B Sale to Germany Under the Coffee Tax

Why B2B Sales of Coffee to Germany Often Fail

In B2B sales of coffee to Germany, there are frequent uncertainties about who owes the Coffee Tax, when the Coffee Tax arises, and who must fulfill notification and procedural obligations. In practice, these uncertainties lead purchasing parties in Germany to reject B2B sales or selling parties in the EU to avoid B2B sales to Germany. The cause is regularly an unclear allocation of tax responsibility under German law.

Application of the Coffee Tax to Intra-Community B2B Sales

Coffee is subject to the Coffee Tax in Germany when it enters the German tax territory from another Member State for commercial purposes. The tax assessment is governed by Section 17 of the German Coffee Tax Act.

Classification of the Coffee Tax in Tax Law

The Coffee Tax is a national excise tax under German law. It is not part of VAT law. Under VAT law, coffee is not classified as an excise goods within the meaning of Section 1a(5) of the German VAT Act.

Commercial Acquisition as the Tax Trigger

The Coffee Tax arises through commercial acquisition. The tax debtor is the Coffee Recipient.

A Coffee Recipient is the party that receives the coffee within the German tax territory or that receives the coffee outside the German tax territory and subsequently transports or causes it to be transported into the German tax territory. Decisive is the actual physical control over the coffee.

Coffee Recipient Status Is Not Linked to the Purchase Contract

For the Coffee Tax, the conclusion of a purchase contract is not decisive. Decisive is exclusively the receipt of the coffee. The sale of coffee in itself does not establish Coffee Recipient status.

Standard Case in B2B Sales

In the standard case of a B2B sale, the coffee is dispatched by the selling parties from another Member State and received by the purchasing parties within the German tax territory. The purchasing parties become Coffee Recipients and tax debtors. The selling parties do not become Coffee Recipients.

Example of the Standard Case in a B2B Sale

A company in Italy sells coffee to a company in Germany. The coffee is delivered directly to the purchasing parties in Germany. The coffee is received within the German tax territory. The purchasing parties are Coffee Recipients and tax debtors.

Deviations from the Standard Case in a B2B Sale

Deviations from the standard case in a B2B sale lead to increased tax risks if the roles are not clearly defined. Selling parties in another Member State can only become Coffee Recipients themselves if the coffee does not enter Germany for the fulfilment of a specific B2B sale.

Requirements for Coffee Recipient Status of the Selling Parties

The selling parties become Coffee Recipients only if they hold the coffee outside Germany under their own physical control and transport the coffee into the German tax territory at their own economic risk.

Example of Independent Transport in a B2B Sale

A company in Italy transports coffee from its own warehouse in Italy to its own warehouse in Germany. There is no specific B2B sale at the time of transport. The selling parties receive the coffee themselves. The selling parties become Coffee Recipients and file the Coffee Tax declaration.

Distinction from Distance Selling

If coffee is supplied as part of a sale to purchasing parties that do not act as commercial recipients, distance selling within the meaning of Section 18 of the German Coffee Tax Act applies. In this case, the selling parties become tax debtors. The selling parties must appoint a tax representative within the German tax territory. This case must be strictly distinguished from a B2B sale under Section 17 of the German Coffee Tax Act.

Possession as a Fallback Criterion in Case of Procedural Violations

If the notification procedure under Section 17(4) of the German Coffee Tax Act is not complied with, the Coffee Tax may arise with the party that actually holds the coffee in possession while it is located within the German tax territory. Decisive is physical control. This interpretation has been confirmed by the case law of the Federal Fiscal Court.

ECLI:DE:BFH:2025:U.141025.VIIR13.23.0

Representation in the Execution of the Procedures

Coffee Recipients may be represented in the execution of the notification and declaration procedures under the German Fiscal Code. The tax liability remains with the Coffee Recipients.

Outcome for B2B Sales to Germany

For B2B sales to Germany, it must be ensured that the Coffee Recipients are clearly identified, that the notification is submitted before transport, and that physical control is clearly allocated. This is a prerequisite for the proper fulfilment of Coffee Tax obligations.