Germany VAT Calculator 2026
19% standard, with reduced rate of 7% on specified categories.
Figures last reviewed
Germany VAT at a glance
- Standard VAT rate
- 19% — ranked 19 of 36 covered here
- Reduced rate
- 7% — applies to specified categories only
- Compared with the average
- +2.01 pts — average across the 36 countries covered is 16.99%
- Registration threshold
- 22,000 EUR — annual turnover above which registration becomes compulsory
- Rates verified
- 17 August 2026 — checked against the issuing tax authority
German Mehrwertsteuer (USt): 19% standard, 7% reduced
Germany's VAT is officially Umsatzsteuer (USt) but commonly called Mehrwertsteuer (MwSt) — the term you see on most invoices and receipts. Two main rates apply:
- 19% — standard rate, on most goods and services
- 7% — reduced rate, on basic foodstuffs, books and e-books, newspapers, public transport, cultural admission, hotel accommodation, agricultural inputs
- 0% — exports outside the EU, intra-EU B2B supplies, certain medical and educational services
- Exempt (no input recovery) — financial services, residential rentals, healthcare
German restaurants returned to 19% on food (from a temporary 7% COVID measure) on 1 January 2024. Hotel accommodation remains at 7%, but breakfast, parking, and minibar are billed at 19% — most German hotel invoices show two USt lines.
Kleinunternehmerregelung: the EUR 25,000 small-business exemption
Germany's small-business rule (Kleinunternehmerregelung §19 UStG) lets businesses with turnover ≤ EUR 25,000 in the previous year and ≤ EUR 100,000 in the current year opt out of charging USt — at the cost of losing input-tax recovery. Effective 2025 (raised from EUR 22,000 / EUR 50,000 in 2024).
Above the threshold, you must register for USt with your Finanzamt and obtain a Steuernummer. For intra-EU trade you also need a USt-IdNr(DE-prefixed) issued by the Bundeszentralamt für Steuern.
The classic 7%-vs-19% catches: takeaway, books, hotels
Takeaway food (zum Mitnehmen) is 7%. Eat-in restaurant food is 19% again since January 2024. Coffee from the same shop is 7% if takeaway, 19% if served at a table. Print books and e-books are both 7% since the 2020 alignment. Hotel rooms are 7%, but breakfast, parking, and Wi-Fi (when separately billed) are 19%. Software downloads, SaaS and most digital services are 19%.
Worked example
A Berlin consultancy bills a German corporate client EUR 5,000 net for advisory services (19%): USt EUR 950, Bruttobetrag EUR 5,950. The same EUR 5,000 to an Austrian VAT-registered company is 0% under intra-EU reverse charge — provided the Austrian UID is quoted on the invoice and reported in the ZM (Zusammenfassende Meldung).
Frequently asked questions
Is restaurant food 7% or 19% now?
19% (standard rate). The temporary 7% rate for in-restaurant food, introduced during COVID, ended on 31 December 2023. Takeaway and delivery remain at 7%. Drinks are 19% across the board.
Why does my hotel bill have two USt lines?
The room itself is 7%; everything ancillary (breakfast, minibar, parking, Wi-Fi when separately charged) is 19%. German law requires the breakdown on the invoice. Some hotels now bundle breakfast into a 7% packaged rate — it depends on contract structure.
Can a foreign business reclaim German USt?
EU businesses claim through the EU VAT refund portal in their home state. Non-EU businesses file directly with the Bundeszentralamt für Steuern using the 13th Directive procedure (with reciprocity required for certain countries). Deadlines are strict: 30 September of the following year for EU; 30 June for non-EU.
When are USt returns due?
Most businesses file monthly USt-Voranmeldungen, due the 10th of the following month (with a one-month Dauerfristverlängerung available). The annual USt return (Umsatzsteuererklärung) is due 31 July of the following year. Filings are submitted electronically via ELSTER.
Is e-invoicing mandatory in Germany?
From 1 January 2025, B2B e-invoicing is mandatory in principle (with phased acceptance periods through 2027 for outbound issuing). Inbound: every German business must be able to receive XML invoices in EN 16931 format (XRechnung or ZUGFeRD 2.x) from 1 January 2025. PDF-only invoices between businesses are gradually being phased out.
Official sources
Last reviewed: 2026-05-10.
How VAT works in Germany
Standard 19%, Reduced 7% (food, books, transport)
Calculating Germany VAT
Start from the price excluding tax
VAT is charged on the net price. At 19%, a net EUR 100 becomes EUR 119.00 once VAT of EUR 19.00 is added.
To work backwards, divide — never subtract
Removing VAT from a gross figure means dividing by 1.1900, not subtracting 19%. Subtracting the percentage from the gross amount understates the net price, and the error grows with the rate.
Check which rate actually applies
Germany applies a reduced rate of 7% to specified categories. Standard 19%, Reduced 7% (food, books, transport) Using the standard rate on a reduced-rate supply overstates the tax.
Registration is threshold-based
Businesses with taxable turnover above EUR 22,000 a year must register and charge VAT. Below it, registration is usually voluntary — worth doing when your customers can reclaim the tax.
Worked example at 19%
Adding and removing VAT at 19%
| Component | Adding to a net price | Removing from a gross price |
|---|---|---|
| Starting amount | EUR 100.00 | EUR 1,000.00 |
| VAT at 19% | (EUR 19.00) | (EUR 159.66) |
| Result | EUR 119.00 | EUR 840.34 |
So a net price of EUR 100.00 in Germany costs EUR 119.00 once VAT is added. Working the other way, a gross price of EUR 1,000.00 contains EUR 159.66 of VAT, leaving EUR 840.34 net.
Computed from the same 19% rate the calculator applies, so this table and the calculator cannot disagree.
Countries with a similar rate
Germany VAT questions
What is the VAT rate in Germany?
The standard rate is 19%. Reduced rate of 7% apply to specified categories. That places Germany 19 of 36 of the countries covered here, 2.01 points above the 16.99% average.
How do I remove VAT from a price in Germany?
Divide the gross amount by 1.1900. At 19%, a gross EUR 1,000 works back to EUR 840.34 net with EUR 159.66 of VAT. Subtracting 19% from the gross figure is the common mistake and gives the wrong answer.
When do I have to register for VAT in Germany?
Once taxable turnover passes EUR 22,000 a year. Registering voluntarily below the threshold lets you reclaim input tax, which usually pays off if you sell mainly to other registered businesses and costs you if you sell to consumers.
Which countries have higher and lower rates than Germany?
Of the countries covered here, Finland has the highest standard rate at 25.5% and United Arab Emirates the lowest at 5%. Germany sits at 19%.