Germany VAT Rates
A taxable supply is one that involves the provision of goods or services that are subject to a VAT rate, including zero rate. In Germany, VAT-registered sellers of goods and services must charge the appropriate VAT rate and collect the tax for payment to the German tax authorities via a VAT filing system.
Germany’s standard VAT rate is 19%. Some goods and services are subject to a reduced VAT rate of 7%. Some services (including banking, health, and social work) are VAT exempt.
Germany VAT Rates
Type of rates |
Rates |
Type of products or services |
| Standard rates | 19% | All Taxable goods and services not included in the reduced or zero rates |
| Reduced rates | 7% | Some Water Supplies Medical Equipment for Disabled Persons Local Public Transport Books, Audiobooks and Newspapers Periodicals Writers / Composers Agricultural Inputs Hotel Accommodation Admission to cultural and certain sports events Social Services Firewood Take away food Medical and Dental Care Cut flowers and plants Types of gold coins and jewellery |
| Zero rated | 0% | Intra-community and International Transport (with some exclusions) |
| Option to tax for exempt supplies. | For certain VAT-exempt supplies, such as land, buildings, and financial transactions, the supplier may elect to classify the transaction as taxable and, if certain conditions are met, collect corresponding input tax. Additional conditions may apply. The supply or service must be supplied to an entrepreneur for commercial purposes. |
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: 16/01/2022
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
