Selling on OTTO Market: VAT rules for sellers

Adding OTTO Market as a sales channel? For VAT this means: you act as the seller towards the end customers, as a seller based in Germany your sales belong in your VAT return, and OTTO's fees come "plus the applicable VAT" (OTTO's words, our translation). OTTO also requires your own VAT ID and excludes small businesses under § 19 UStG.

Last updated: 27 October 2026

In brief

You are the seller. OTTO's requirements say you appear as the seller towards end customers.
Your own VAT ID. OTTO requires one; a tax group (Organschaft) with a shared ID cannot be connected.
Small businesses under § 19 UStG are excluded from selling on the marketplace, according to OTTO.
OTTO's fees are stated by OTTO as plus the applicable VAT. On an invoice that shows the tax you can deduct input VAT (§ 15 para. 1 no. 1 UStG).

What does OTTO require from you?

These points come from OTTO Market's pages "Formalien" (formalities), "Anmeldung" (registration) and FAQ, read on 27 October 2026. They change; the current OTTO page is what counts.

One of the accepted legal forms, including sole traders without a commercial register entry, GbR, GmbH, UG (haftungsbeschränkt) and e.K.
A company seat in one of the countries OTTO lists; for German businesses that is Germany.
Your own VAT ID. For businesses from other countries OTTO also requires participation in the OSS.
On connection, OTTO compares your data with the information held at the Federal Central Tax Office (BZSt); in the company information it later asks for your economic identification number and your tax number.

For payments, OTTO names OTTO Payments GmbH as its own payment service provider; you neither need nor can use your own.

What this means for you: Check OTTO's current pages before you apply, because the requirements can change.

Which marketplace rules apply here too?

OTTO is subject to the same marketplace rules as any other marketplace where you sell as a trader. That includes platforms reporting seller data to the tax authorities. What platforms report and what you should know: DAC7 reporting: what platforms tell the tax office about sellers. How VAT looks on a similar marketplace: Kaufland marketplace and VAT.

What this means for you: Expect the same marketplace rules as on other platforms, including seller data reports to the tax authorities.

Small businesses on OTTO Market?

OTTO's "Formalien" page says (our translation): "All other legal forms, including small businesses under § 19 UStG, are excluded from selling via the marketplace." The FAQ adds that you must not be "registered as a small business under § 19 UStG with the tax office". That is OTTO's condition, not tax law. For the 2026 limits and what happens when you switch to standard VAT: Small business rule 2026: limits and switching.

What this means for you: You cannot sell on OTTO Market as a small business under § 19 UStG; that is OTTO's condition, not tax law.

How do you treat OTTO's invoices and your sales?

Fees. OTTO names a monthly base fee and a percentage sales fee, both "plus the applicable VAT", with the commission invoiced weekly; OTTO Payments offsets the amounts against your sales balance. We do not give fee amounts here; they are on OTTO's page. You may deduct "the tax legally owed" on a service another business supplied if you hold an invoice under §§ 14, 14a UStG (§ 15 para. 1 no. 1 UStG). Keep the fee invoices from the partner portal and check that the tax is shown.

Sales. In the VAT return you work out the tax for the period yourself and submit it by the tenth day after the period ends (§ 18 para. 1 UStG), or one month later with a permanent extension (§ 18 para. 6 UStG, § 46 UStDV). The basis is the consideration you receive for your supply, less the VAT legally owed (§ 10 para. 1 UStG), not the amount OTTO pays out after offsetting fees. How the return works: File your VAT return online.

Receipts for customers. According to OTTO, it makes the customers' purchase receipt available in the partner portal and creates it "in your name" from the data in your company information. Whether such a receipt contains everything an invoice needs, you check against the mandatory details: Invoice: mandatory details under § 14 UStG.

What this means for you: Keep OTTO's fee invoices and base your VAT on the consideration for your sales, not on the payout.

Common mistakes

Working with the payout amount. For VAT, the consideration for your sales counts, not the balance after fees.
Not keeping fee invoices. No invoice, no input VAT.
Forgetting the VAT ID. OTTO needs your own; tax groups are excluded.
Applying as a small business. OTTO excludes § 19 UStG explicitly.

What this means for you: Avoid these four mistakes: payout instead of consideration, lost fee invoices, a missing VAT ID and applying as a small business.

How VAT GPT helps

VAT GPT is the tax software for online sellers, freelancers and small businesses in Germany. It calculates and files in one place, in this order:

your OSS return
VAT
EÜR
trade tax
income tax

The VAT GPT method has three steps:

Upload: You upload your sales reports (for example Amazon or eBay CSV files) and your invoices. The AI reads amounts, countries and tax rates.
Check: VAT GPT calculates your returns from this data and flags invoices with low confidence for manual review. You check and confirm.
Send: With VAT GPT Pro, the VAT returns and the other returns go through ELSTER to the tax office, the OSS return directly to the BZSt.

You can upload invoices. The AI reads amounts, countries and tax rates, and you check and confirm them. VAT GPT creates the VAT return and, with VAT GPT Pro, you send it through ELSTER. There is Free, Go (30 days free with all Pro features) and Pro. Try for free now

Frequently asked questions

Do I have to charge VAT on OTTO Market? You appear as the seller (OTTO FAQ); if you are based in Germany, your sales belong in your VAT return (§ 18 para. 1 UStG).

Can a small business sell on OTTO? According to OTTO, no: small businesses under § 19 UStG are excluded.

Do I need a VAT ID? Yes, your own; tax groups with a shared ID cannot be connected, says OTTO.

Do OTTO's fees include VAT? OTTO states them as plus the applicable VAT. You can deduct the tax shown on the invoice if you hold it (§ 15 para. 1 no. 1 UStG).