Changes to the Foreign Trade Regulation (AWV) in 2025: Key Updates for Businesses

As of January 1, 2025, significant amendments to the Foreign Trade Regulation took effect through the Bureaucracy Reduction Act. These changes impact companies involved in international trade as well as those handling cross-border payments, whether paying or receiving funds.

In this article, we outline the main changes and explain what businesses need to consider moving forward.
 

1. Updated Reporting Thresholds

A major part of the changes is the revision of the reporting thresholds, which will come into effect in 2025. The following thresholds have been adjusted:
 

• From 2025, transactions will only need to be reported when they exceed 50,000 euros, rather than the previous threshold of 12,500 euros.
   
• The threshold for reporting claims and liabilities has been raised to 6 million euros.
   
• Similarly, the threshold for reporting the assets of domestic individuals abroad or foreign individuals in Germany will also be increased to 6 million euros.
   

2. Standardized Reporting Deadlines

Reporting deadlines will now be standardized and adjusted to workdays to make compliance easier:
 

• Transaction Reports: These must be submitted by the 7th workday following the end of the reporting month.
   
• Claims and Liabilities with Foreign Parties: These reports must be submitted by the 10th workday of the following month.
   
• Financial Relations with Foreign Parties Exceeding 500 Million Euros at the End of a Quarter: Reports for these cases must be submitted by the 50th workday after the end of the quarter.
   

3. Changes for Cryptocurrencies

There are also new reporting requirements for cryptocurrencies. Any cryptocurrency transactions with a value over 50,000 euros involving a foreign counterparty are now subject to reporting. To facilitate this, new identifiers have been introduced starting in 2025, allowing for a more precise categorization of cryptocurrencies in the balance of payments.
 

4. Transition from Paper Forms to Digital Reporting

The previous paper-based forms will be replaced by electronic reporting tools. Starting in mid-2025, new digital reporting schemes in XML format will be available through the updated General Reporting Portal for Statistics (AMS).
 

Conclusion

The changes to the Foreign Trade Regulation will affect a wide range of business activities and require careful attention to ensure compliance. The adjustment of reporting thresholds, the introduction of uniform reporting deadlines, and the shift to digital reporting methods are all designed to reduce bureaucracy and increase efficiency.

It’s important for businesses to prepare in advance for these changes. Failure to comply with the new reporting requirements could result in fines of up to 30,000 euros, as outlined in Section 19 (6) of the Foreign Trade Act (AWG) and Section 81 (1) of the AWV. By staying vigilant, you can avoid these penalties.
 

If you need assistance in adapting to these new regulations, don’t hesitate to get in touch. Together, we can ensure your company complies with the new reporting obligations promptly and accurately.