Consumption/VAT/Sales Tax in Germany
Accounting (0) , Consumption/VAT/Sales Tax (1) , Corporate Tax (0) , International Tax Treaties (0) , Personal Tax (0)
Overview by Globlatrade.net:
- Nature of the Tax
- Value Added Tax (VAT) called Umsatzsteuer (USt)
- Standard Rate
- Reduced Tax Rate
- A reduced rate of 7% is applied to food, public transport, books and magazines and other products.
No rate is applied to exports.
- Exclusion From Taxation
- Transactions including some financial transactions and services, medical and educational services, and transactions covered by property tax are exempted from VAT.
- Method of Calculation, Declaration and Settlement
- VAT is calculated on the selling price. To obtain a VAT refund, a company must have a tax identity number.
- Other Consumption Taxes
- Company expenses are also subject to VAT (Vorsteuerabzug) at the rate of 19%. For more information refer to the German investement promotion agency.
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