Paying a German supplier in euros: Rechnung and Vorkasse prepayment, IBAN and Verwendungszweck, German VAT on an export invoice, the GmbH form and USt-IdNr.
Estimate the minimum fee
The final fee and rate are fixed in the payment order
Minimum amount: 10,000 USD or equivalent
This is a minimum, not an offer or a rate lock. The final figure depends on the country, amount and the banks involved and is fixed in the payment order.
Request a quoteGermany remains an important supplier for Russian manufacturers, although the list of goods that may be sold to Russia has shrunk considerably. Today Russian companies pay German firms for components and consumables for machine tools already installed, medical and laboratory products, reagents, food ingredients, packaging and software licenses. The supplier itself decides on the sale of each item: a German exporter answers to its own authorities for what it ships and to whom. If the goods are banned from sale to Russia, no payment will bring them in, and we do not take such a deal.
A German invoice is called a Rechnung, and an advance invoice a Vorauszahlungsrechnung or proforma. Within Germany it is customary to pay after delivery, within 14 or 30 days, with a Skonto discount for quick payment. To a Russian buyer, a German supplier almost always offers Vorkasse: full prepayment before shipment. Before that, the supplier sends an Auftragsbestätigung, an order confirmation with the price and delivery date. Keep it together with the contract: the advance is tied to it, and your bank may ask for this document during currency control. If the invoice offers a discount for payment on time, count from the date the money is credited to the supplier’s account and allow for the execution period under the agency agreement.
A German IBAN starts with DE and has 22 characters. The BIC is needed for a SWIFT transfer; within SEPA it can be omitted. The payment reference field in Germany is called the Verwendungszweck. The supplier’s accounts department uses it to match the incoming payment to the invoice, so we put the Rechnung number and the contract number there. A German accountant may take a long time to identify a payment without the invoice number in the reference, and the supplier will assume the money has not arrived.
We select the agent from our pool for the beneficiary’s bank in Germany. If the agent’s account is in the SEPA area, the euros can go via SEPA; if not, via SWIFT. The exchange rate and the fee are written in the payment order before the roubles leave your account. If you need a guarantee, the roubles wait for the euros to be credited in a special escrow account at a Russian bank: this scheme is on request, for an additional fee. VEDmost’s fee is paid by the agent.
In Germany, a delivery outside the EU is exempt from VAT if the exporter proves that the goods were exported. When the buyer collects the cargo itself, on EXW terms, the German supplier is not always sure it will get that proof, and adds 19 percent MwSt to the invoice. There is no reason for you to pay someone else’s tax. Agree on the export documents and ask for an invoice without VAT before payment.
The beneficiary’s name is written with its legal form: GmbH, AG, KG, GmbH & Co. KG, UG (haftungsbeschränkt). The invoice shows the USt-IdNr. with the DE prefix, which can be checked in the European VAT database. The company is also entered in the commercial register with an HRB number. We use these details to check the beneficiary against the contract before you sign the agency agreement.
Five steps, the same for every country. Country specifics are described above.
Beneficiary's country, amount, currency, the invoice and the contract or bill, your company's and the beneficiary's details. We review the request before any documents are signed.
We select a network company and a route and prepare the documents. You sign an agency agreement with that company, which sets the execution period, and a payment order: amount, exchange rate and fee. All of this before you transfer your roubles.
You transfer roubles to the network company from your account at a Russian bank. If you need a guarantee, they wait for execution in a special escrow account, for an additional fee.
The agent sends the currency to the beneficiary under this payment order. A sub-agent is engaged only with your consent. The route does not change without a payment order.
We send you the payment confirmation, and a SWIFT confirmation on request. Then the completion certificate, the agent's report and the currency control package. The deal is not closed until the currency has been sent to the beneficiary.
If you need a guarantee, the payment goes through a special escrow account at a Russian bank: the roubles wait there until the agent sends the currency to the beneficiary and are released only upon execution. This scheme carries an additional fee, shown in the quote before the agreement.
The agent executes the payment within 3 business days: the period is written into the agency agreement.
If the beneficiary's bank accepts payment only from a specific payer, the agent engages a sub-agent. Only with your consent. Your agency agreement does not change.
For large volumes, on request, we assign an agent backed by a large exporter's surety; some companies in our network have one. It can be combined with escrow.
Tell us the rate you pay now or send your current agent’s documents. We’ll calculate the all-in cost with the FX markup and charges and look for a lower rate in our network. If there isn’t one, we’ll say so. The comparison is free.
Yes, if the account of the agent we select for your payment is in the SEPA area. Otherwise the transfer goes via SWIFT. The supplier's bank details and the documents stay the same either way.
German VAT is usually not charged on exports outside the EU if the exporter can prove the export. If the tax is in the invoice, ask the supplier before payment.
Skonto is counted from the date the money is credited to the supplier's account. Allow for the execution period in the agency agreement and send the payment with time to spare.
The Rechnung number and the contract number. This field, the Verwendungszweck, tells the supplier's accounts department what the money is for.
The exporter answers to its own authorities for what it sells and to whom. For machinery and equipment such a statement is standard practice, and without it the supplier may not ship the goods.
Describe the payment. We'll reply with a proposed route and terms. We name the agent in advance, and the rate and fee go into the payment order before your roubles are debited.