Consumption/VAT/Sales Tax in Germany

Overview by
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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Experts Views (1)
  • EU VAT Guide

    With 27 EU Member States, each with their own VAT legislation to consider, VAT can be a time consuming and confusing task for international business.

    Accordance on 24 Jan 2012 related to Consumption/VAT/Sales Tax in Germany

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  • Accordance

    International VAT Compliance,