Add or remove German VAT at the 19% standard or 7% reduced rate.
Germany's standard VAT (Mehrwertsteuer) rate is 19%. A reduced 7% rate applies to items like food, books, and public transport.
Illustrative estimate only, using simplified/rounded 2026 German tax figures — not tax advice. The income tax figure uses a smoothed approximation of the official §32a EStG progressive formula, not the exact quadratic zone formula. Always confirm with the Finanzamt or a Steuerberater.
Germany's VAT (Mehrwertsteuer, or MwSt.) is charged at a standard rate of 19% on most goods and services, with a reduced rate of 7% applying to specific categories including most food products, books, newspapers, and public transport — the reduced rate reflects a policy choice to keep essential goods and cultural products relatively cheaper than general consumption.
As with VAT systems elsewhere in the EU, Mehrwertsteuer is collected in stages through the supply chain: VAT-registered businesses charge it on sales and reclaim what they paid on business purchases, remitting only the net difference to the tax authority (Finanzamt), so the full 19% or 7% is ultimately borne by the end consumer rather than compounding at each stage of production.
German law assigns the reduced 7% rate to specific categories deemed essential or culturally significant — most food, books, newspapers, and local public transport — while the 19% standard rate applies to most other goods and services by default.
No, each EU country sets its own VAT rates within broad EU rules — Germany's 19% standard rate is close to the EU average but differs from, for example, France's 20% or Ireland's 23%, even though the underlying VAT mechanism works similarly across the bloc.
Very small businesses can use the Kleinunternehmerregelung (small business exemption) if turnover stays below a set threshold, allowing them to skip charging VAT on sales — though they also then cannot reclaim VAT paid on their own business purchases.
Yes, digital services and most online goods purchases are subject to VAT, generally at the rate of the buyer's country for consumer sales within the EU under current rules, which is why online checkouts show a rate matching the customer's location.