VAT in Germany: Rates, Rules & How to Calculate Mehrwertsteuer
Germany applies two VAT (Mehrwertsteuer/MwSt) rates. The standard rate is 19%, covering most goods and services. The reduced rate of 7% applies to food, books, newspapers, public transport, hotel accommodation, and cultural events. Germany temporarily reduced its standard rate to 16% and reduced rate to 5% from July to December 2020 as a COVID-19 stimulus measure, but rates have since returned to normal.
The German Federal Central Tax Office (BZSt) oversees VAT administration. Businesses must register for VAT if their annual revenue exceeds 22,000 euros (Kleinunternehmerregelung threshold). VAT returns are filed monthly or quarterly depending on the prior year's VAT liability, and an annual return (Umsatzsteuererklarung) is mandatory. Germany uses the reverse charge mechanism for many cross-border B2B services.
Use our calculator to compute German MwSt instantly. For invoice preparation, try our invoice calculator, and for general percentage calculations, use our percentage calculator.