Germany VAT Rates 2026

Germany VAT Rates at a Glance

What is VAT Called in Germany?

In Germany, value added tax is officially known as Mehrwertsteuer (MwSt) / Umsatzsteuer (USt). It is administered by the Bundeszentralamt für Steuern (BZSt) for foreign businesses; local Finanzamt for German businesses.

Like all EU member states, Germany operates VAT under the EU VAT Directive (2006/112/EC), which sets the framework for standard and reduced rates, exemptions, and the reverse charge mechanism across all 27 EU countries. The Bundeszentralamt für Steuern is responsible for VAT registration, returns, enforcement, and issuing VAT rulings.

Reduced VAT Rate in Germany (7%)

Germany applies a reduced VAT rate of 7% to the following categories of goods and services (subject to the specific conditions of Germany VAT law):

• ✓Food and agricultural products
• ✓Books, newspapers and magazines
• ✓Cultural services (theatres, museums, concerts)
• ✓Public transport (local)
• ✓Accommodation
• ✓Pharmaceutical products
• ✓Cut flowers and live plants

Note: Reduced rate eligibility depends on the specific nature of the supply and how goods or services are classified under Germany VAT law. Always verify classification with a local VAT adviser before applying a reduced rate.

VAT Registration in Germany

Once registered, businesses are issued a Germany VAT number (DE + digits). This number must appear on all invoices and be verified on the EU VIES database before zero-rating intra-EU B2B supplies.

Non-EU businesses are generally required to register for Germany VAT with no registration threshold — the first taxable supply in Germany triggers an immediate registration obligation. Non-established businesses may need to appoint a local fiscal representative depending on the nature and location of their business.

Filing VAT Returns in Germany

VAT returns in Germany must be submitted electronically via the Bundeszentralamt für Steuern portal. Most member states require payment of VAT due simultaneously with the return submission — check whether Germany requires separate payment instructions or if bank debit is automatic.

VAT Invoice Requirements in Germany

To be valid for VAT recovery purposes, Germany VAT invoices must include the following mandatory information (consistent with Article 226 of the EU VAT Directive, plus any additional national requirements):

1. 1Full name and address of supplier and recipient
2. 2German tax number (Steuernummer) or VAT ID (USt-IdNr: DE + 9 digits)
3. 3Date of invoice and date of supply
4. 4Consecutive invoice number (fortlaufende Nummer)
5. 5Quantity and description of goods/services
6. 6Net amount, VAT rate, VAT amount
7. 7Gross amount payable

Simplified invoices (without all fields above) may be issued where the total amount does not exceed €100 excluding VAT, subject to Germany's national rules on simplified invoicing.

Reverse Charge Mechanism in Germany

Germany applies the Reverse-Charge-Verfahren to B2B services from abroad, construction services under §13b UStG, supplies of scrap and waste (§13b para. 2 no. 7), and emission allowances.

Under the reverse charge, the recipient of the supply (rather than the supplier) is responsible for declaring and paying VAT. The recipient self-accounts for VAT on their Germany VAT return — declaring both output VAT (as if they had charged it) and input VAT (which they may recover subject to normal rules). The supplier issues an invoice without VAT with a note such as "Reverse charge — Article 196 EU VAT Directive."

EU OSS and Germany

German businesses register for EU OSS through the BZSt's BOP online portal (BZSt Online-Portal) at bzst.de. Germany is the EU's largest OSS registered country by business volume.

Under the EU's One Stop Shop (OSS) scheme introduced in July 2021, businesses selling digital services or goods B2C to customers in Germany (and other EU countries) can register in a single EU member state and file a single quarterly return covering all EU consumer sales. OSS avoids the need to register for VAT separately in each of the 27 EU member states where you have customers. The Germany VAT due on your OSS return is paid in your registration country and forwarded to Germany's Bundeszentralamt für Steuern.

Germany VAT: Background & History

Germany pioneered the modern VAT concept — the intellectual foundation for EU VAT was laid by German tax economist Wilhelm von Siemens who coined the term "Mehrwertsteuer" in 1919. Germany implemented VAT in 1968. The temporary COVID-19 rate reduction in 2020 (19% to 16%, 7% to 5%) was Europe's largest-scale temporary VAT cut and cost the German government an estimated €20 billion.

Practical VAT Compliance Tips for Germany

Frequently Asked Questions — Germany VAT

Germany VAT Tools