Germany VAT / Sales Tax

Detailed vat / sales tax rates and rules for Germany in 2026.

VAT / Sales TaxEUR

Germany applies a Value Added Tax (Umsatzsteuer or Mehrwertsteuer) at a standard rate of 19%, with a reduced rate of 7% for essential goods and services. VAT-registered businesses must file monthly or quarterly preliminary VAT returns and an annual VAT return. The VAT system follows EU directives and uses the credit-invoice method.

Standard Rate

19%

Registration Threshold

€22,000 in annual revenue (Kleinunternehmerregelung: businesses below this threshold may opt out of charging VAT)

Reduced Rates

7% — Food and beverages (excluding restaurant services and alcoholic beverages), books, newspapers, magazines, public transportation, hotel accommodation, cultural events, medical devices, and agricultural products0% — Intra-community supplies of goods, exports outside the EU, and certain financial and insurance services (exempt without credit)

How Germany VAT / Sales Tax compares

Germany’s standard VAT / sales tax rate of 19% is the 44th highest of 203 countries TaxAtlas tracks, above the global average of 13.7% and Europe’s regional average of 19.9%.