Vat Calculator  Germany VAT Calculator

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In Germany, the value added tax is one of the main sources of income - accounts for 28% of all revenues.

VAT stands for Value Added Tax. Germany is part of EU, therefore, its tax system is harmonized with the EU Directive on taxes. (ger. MwSt - Mehrwertsteuer).

If turnover for the previous calendar year did not exceed 17 500 € and in the current planning not to exceed EUR 50 000 (for small businesses), the resident may not register for VAT. Otherwise, the company should register and pay VAT in accordance with the general provisions on German VAT taxation.

Non-residents whose activities are conducted in Germany and taxed, are also obliged to register for VAT.

If distance selling in Germany the company is a non-resident obtains a turnover of EUR 100 000 in one calendar year, it must register for VAT in Germany.

There are several VAT rates:
  • the standard rate is 19%;
  • reduced rate of 7%;
  • exemption from VAT which is 0%;

Under the standard VAT rate (19%) are almost all taxable goods and services.

Reduced rate (7%) applies to certain categories of goods and services ( such as imports; the purchase of food within the EU, except drinks and fast food; the sale of books and periodicals (excluding electronic books); medical equipment for disabled persons; inter-community (EU) and the international passenger transport on specific road and rail routes; hotel services; purchase / sale of real estate; insurance services; some financial services, etc.).

Exempt from VAT (0%) inter-community (between EU countries) and international water transportation.

In addition, there are several specific VAT rates: farmers pay 5.5% and foresters pay 10.7% (you can calculate those using general vat calculator here).