German VAT Rates
Navigating the ins and outs of Value Added Tax doesn’t have to be daunting. Whether you’re a German business owner or just curious about how it all works, this blog is your friendly guide to VAT in Germany.
We’re here to simplify the key points – giving you important information on German VAT in plain, easy-to-grasp terms. No fuss, just the essentials.
What is the VAT rate in Germany?
Germany has a standard VAT rate of 19%, which applies to most goods and services. However, there are exceptions:
- Reduced Rate (7%): Includes essential items like food, books, and public transport.
VAT exempt goods and services
Certain categories are exempt from VAT in Germany, such as:
- Healthcare Services: Medical treatments and related services.
- Education: Services provided by educational institutions.
- Financial Services: Banking and insurance services.
VAT exempt goods and services
Zero-rated VAT applies to certain goods and services where the VAT rate is set at 0%. This means that while no VAT is charged to the customer, the seller can still reclaim VAT on their inputs related to these sales.
In Germany, there are no zero-rated goods or services.
VAT-exempt items are those that are not subject to VAT at all, and the seller cannot reclaim VAT on the inputs used to provide these goods or services.
Essentially, zero-rating allows for input tax recovery, while exemption does not.
German VAT Registration and Thresholds
In Germany, there’s no threshold for VAT registration.
Filing VAT Returns in Germany
- Frequency: Monthly, quarterly or annually, depending on the business size.
- Online Filing: Mandatory for all businesses through the ELSTER portal.
- Deadlines: Deadlines can vary depending on filing frequency. The 10th day of the month following the reporting period is standard for monthly and quarterly filings. If you are filing quarterly and have a good track record of German VAT compliance, it can be 1 month + 10 days. Annually, the deadline is usually 6 months – but it varies year to year.
Reclaiming Input VAT
Businesses can reclaim VAT paid on eligible business expenses, such as:
- Business Operations: Office supplies and equipment.
- Travel Expenses: Accommodation and transport.
Current Status on all EPR Categories in Germany (Subject to Regulatory Updates)
| Categories | Legislation Enforcement Date |
| Packaging | 01/07/2022 |
| WEEE | 01/07/2023 |
| Batteries | N/A |
| Single Use Plastics | 01/01/2025 |
| Textiles | 01/01/2025 |
Frequently Asked Questions
Are there any special VAT rules for using fulfilment centres in Germany?
If you store stock in a fulfilment centre in Germany, it triggers an immediate VAT registration requirement, regardless of your sales volume.
How do I file VAT returns in Germany?
VAT returns in Germany are generally filed monthly, quarterly or annually, depending on the business size.
All businesses must file electronically through the ELSTER portal.