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Germany VAT Rates

Updated German VAT rate tables

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.

VAT guides

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 
  Sales of art work
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 

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German VAT Rates & Covid 19

Last Updated: 17/01/2025

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

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