Germany VAT Calculator
How Much Is VAT in Germany?
The standard VAT rate in Germany is 19% in 2026, plus a reduced rate of 7% on food, restaurant meals (since 1 January 2026, drinks excluded), books, newspapers, local public transport, hotel stays and cultural events. Known locally as Umsatzsteuer (USt) or Mehrwertsteuer (MwSt), it applies to most goods and services sold in Germany. Among the 27 EU member states, standard VAT ranges from 17% in Luxembourg to 27% in Hungary, so the German rate sits at the low end — see how it compares in VAT rates in Europe.
How to calculate Germany VAT
To add 19% VAT to a net (tax-exclusive) price, multiply it by 1.19. To remove VAT from a gross (tax-inclusive) price, divide it by 1.19.
- Add VAT: EUR 100 net × 1.19 = EUR 119 gross (that is EUR 19 of VAT)
- Remove VAT: EUR 119 gross ÷ 1.19 = EUR 100 net (that is EUR 19 of VAT)
Use the Germany VAT calculator above for any amount, or compare Germany with every other country in our VAT rates by country table.
Germany VAT Rates Overview
Every VAT rate currently in force in Germany
Current VAT Rates (2026)
| Rate type | Rate | Applies to |
|---|---|---|
| Standard rate | 19% | Most goods and services, including drinks in restaurants |
| Reduced rate | 7% | Most food, restaurant and catering meals (from 1 Jan 2026, excluding drinks), books and e-books, newspapers, local public transport, hotel accommodation, cultural admissions |
| Zero rate | 0% | Rooftop solar panels up to 30 kWp and related storage for homes, exports and intra-EU B2B supplies |
VAT History and Local Rules in Germany
How the rates got here, and country-specific points to watch
Key VAT milestones
- 2026: Restaurant and catering food (not drinks) permanently moved to the 7% rate
- 2025: Kleinunternehmer scheme reformed to EUR 25,000 / EUR 100,000 limits; mandatory receipt of B2B e-invoices
- 2023: 0% rate introduced for small residential solar installations
- 2020: Temporary COVID cut to 16% and 5% from July to December
- 2007: Standard rate raised from 16% to 19%
- 1968: VAT introduced, replacing a cumulative turnover tax
Does the German VAT rate vary by state?
No. Unlike US sales tax, VAT in Germany is a federal tax: the same 19% standard rate and 7% reduced rate apply in every Bundesland. A purchase in Rheinland-Pfalz, Sachsen or Bayern carries exactly the same VAT as the identical purchase in Berlin or Hamburg, and there is no state or municipal surcharge on top.
Two points cause most of the confusion:
- There is no 20% German rate. Neighbouring Austria and France use 20%, and invoices from those countries are often mistaken for German ones. Germany's only rates are 19%, 7%, and zero-rating or exemption for specific supplies.
- Two German territories sit outside the VAT area. The island of Helgoland and the enclave of Büsingen am Hochrhein are excluded from German VAT territory, so German VAT is not charged there.
What does vary locally is which Finanzamt administers a business's VAT registration and returns — not the rate itself.
Good to know
Since 1 January 2026 food served in restaurants, cafés and by caterers is taxed at 7% whether eaten in or taken away, but drinks served with it remain at 19%.
Many foreign businesses are assigned to a specific Finanzamt according to their country of establishment rather than registering centrally.
The 7% rate on gas and district heating introduced during the energy crisis ended in March 2024.
Zero-Rated and Exempt Supplies in Germany
The difference matters: zero-rating keeps input-VAT recovery, exemption does not
Zero-rated supplies (0%)
VAT is charged at 0%, but the seller can still recover input VAT on related costs:
- Exports of goods outside the EU
- Intra-EU B2B supplies of goods to VAT-registered customers
- Supply and installation of solar panels up to 30 kWp on or near homes
VAT-exempt supplies
No VAT is charged, and the seller generally cannot recover input VAT on related costs:
- Financial and insurance services
- Medical and healthcare services
- Education and vocational training
- Residential letting
- Sale of land and buildings (subject to real estate transfer tax instead)
Germany VAT Registration & Compliance
Key facts for businesses registering for and reporting VAT in Germany.
| Local name | Umsatzsteuer (USt) / Mehrwertsteuer (MwSt) |
|---|---|
| VAT number format | DE + 9 digits (e.g. DE123456789) |
| Registration threshold | Kleinunternehmer exemption if turnover was up to EUR 25,000 in the prior year and stays below EUR 100,000 in the current year |
| Non-resident businesses | Non-established businesses must register from their first taxable supply in Germany; the small-business exemption is not available to them |
| Filing frequency | Monthly advance returns if prior-year VAT exceeded EUR 9,000, quarterly if above EUR 2,000, otherwise annual only |
| Filing and payment deadline | 10th day after the end of the period (Umsatzsteuer-Voranmeldung), extendable by one month (Dauerfristverlängerung); annual return by 31 July of the following year |
| E-invoicing / reporting | All businesses must be able to receive structured B2B e-invoices since 2025; issuing becomes mandatory from 2027 for turnover above EUR 800,000 and from 2028 for all |
| Tax authority | Bundeszentralamt für Steuern (BZSt) / local Finanzamt |
Thresholds, deadlines and e-invoicing rules are revised regularly. Always confirm current requirements with Bundeszentralamt für Steuern (BZSt) / local Finanzamt before relying on them.
Cross-Border Sales and Refunds in Germany
Selling into the country from abroad, and getting VAT back
Cross-border rules
Digital services and e-commerce: Foreign sellers of digital services to consumers in Germany charge Germany's VAT rate. EU businesses can declare it through the One-Stop Shop (OSS) once their EU-wide cross-border B2C sales exceed EUR 10,000; non-EU businesses use the non-Union OSS from the first sale.
Tourist VAT refunds: Non-EU visitors can reclaim VAT on purchases above EUR 50 per receipt.
For the general rules, see the reverse charge mechanism, VAT on digital services, VAT invoice requirements and VAT refunds for tourists and businesses.
Compare VAT Rates
VAT rates in neighboring and similar economies
Nearby Countries
🇫🇷 France
Standard Rate: 20%
🇮🇹 Italy
Standard Rate: 22%
🇪🇸 Spain
Standard Rate: 21%
🇳🇱 Netherlands
Standard Rate: 21%
Frequently Asked Questions
Common questions about VAT in Germany
What is the current VAT rate in Germany?
The standard VAT rate in Germany is 19% in 2026. Other rates in force: 7% (reduced rate), 0% (zero rate). See the rates table above for exactly what each rate covers.
How do I calculate VAT in Germany?
To add 19% VAT, multiply the net price by 1.19. To remove it from a VAT-inclusive price, divide by 1.19; the difference is the VAT. The calculator at the top of this page does both.
What is the VAT rate on restaurant food in Germany in 2026?
From 1 January 2026 restaurant and catering food is permanently taxed at 7%, whether eaten on site or taken away. Drinks, including soft drinks and alcohol, remain at 19%.
What is the Kleinunternehmer threshold in Germany?
Since 2025 you can use the small-business scheme if turnover was no more than EUR 25,000 in the previous year and does not exceed EUR 100,000 in the current year. Crossing EUR 100,000 ends the exemption immediately.
Is VAT included in prices in Germany?
Yes. Prices shown to consumers must include VAT (Bruttopreise). B2B prices are often quoted net of VAT.
Sources
Official and professional references used for this page
Last reviewed on 27 September 2026.