Germany VAT Rates
A taxable transaction refers to the offering of goods or services that attract a VAT rate, even if it’s a zero rate. In Germany, those registered for VAT must apply the correct VAT rate when selling goods or services and remit the collected tax to the German tax authorities through a VAT submission process.
The prevalent VAT rate in Germany stands at 19%. A lower VAT rate of 7% is applicable to certain goods and services. Meanwhile, some services, like banking, health, and social work, are exempt from VAT.
View more in our comprehensive guide below.
Germany VAT Rates
Standard VAT rate |
|
| A standard VAT (Value-Added Tax) rate is the common rate that a country applies to most goods and services. While it covers a vast majority of items, there are exceptions. Essential items or certain specific goods and services might benefit from a reduced rate, as detailed below. | |
| Rate | Good or Services |
| 19% | This rate is applicable to most sales of goods and services and encompasses all products and services that are not subject to VAT rates. |
Reduced VAT rates |
|
| There are goods and services that may qualify for a lower value-added tax (VAT) rate presented below and are subject to change: | |
| Rate | Good or Services |
| 7% | Reduced rate |
| Foodstuffs such as bread, milk, meat, and vegetables (excluding luxury food items) | |
| Printed books (excluding e-books), newspapers, and magazines | |
| Certain pharmaceutical products, medical aids, and prosthetic devices | |
| Public transport services, including long-distance travel by bus and train | |
| Hotel accommodations (excluding certain ancillary services) | |
| Admission to cultural events, such as theater performances, concerts, and museums | |
| Copyright license or assignment | |
| 0% | Zero rated products |
| Intra- community supplies | |
| Exports | |
| Processing of goods under the temporary admission procedure for subsequent export | |
| Supplies of specific goods that are stored under a VAT suspension arrangement in approved warehouses and related services | |
| Aviation-related services for air traffic control and navigation | |
| Cross-border transport of passengers | |
| Sales of gold to national banks | |
| Supplies of goods and services by the Federal Railway Company | |
| Catering services provided on international voyages by seagoing vessels | |
| Supplies to foreign military forces that operate within the framework of Common Security and Defense Policy | |
| Supplies to foreign military forces that are part of NATO and stationed in Germany or other Member States. | |
| Transport services for goods that are being exported, arranged by intermediaries on behalf of the supplier or the customer | |
Exempt From VAT |
|
| Financial services such as provision of shares, insurance policies, investment fund management, pension schemes and exchange transactions involving virtual currencies. | |
| Supplies under Real Estate Acquisition Law such as Land, Buildings, Walls, Trees, Plants and Structures or natural objects attached to land. | |
| Health care services associated with auxiliary services provided by institutions | |
| Educational and training services provided by schools and universities | |
| A variety of social welfare and youth services | |
| Boarding services and temporary accommodation services for students and pupils | |
| Postal services such as delivery of letters and parcels, face-value stamps | |
| Race Betting and Lottery Law (e.g., lottery tickets); and | |
| Goods and services provided by registered charitable organizations | |
Selling into Germany?
German VAT Rates & Covid 19
Numerous nations introduced temporary modifications to their VAT rates in response to COVID-19. VAT rate reductions on products and services sold by companies that were particularly hit hard by the pandemic’s economic fallout—such as the hospitality sector—were the most prevalent.
To learn more about the implications of COVID-19 in Germany, please visit our news section by Clicking Here
Last Updated: 27/09/2023
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax
