Add or remove German VAT (Mehrwertsteuer) at 19% standard or 7% reduced rate.
Kleinunternehmerregelung: Businesses with prior-year revenue up to EUR 25,000 can opt for VAT exemption.
What are the VAT rates in Germany?
Germany has two main VAT rates: the standard rate of 19% which applies to most goods and services, and a reduced rate of 7% for essential items like food, books, newspapers, public transport, and hotel accommodation.
What is the Kleinunternehmerregelung?
Small businesses with prior-year revenue up to EUR 25,000 and current-year forecast up to EUR 100,000 can opt for VAT exemption under the Kleinunternehmerregelung. They do not charge VAT to customers but also cannot reclaim input VAT.
How often must I file VAT returns?
The filing frequency depends on your prior-year VAT liability: monthly if over EUR 7,500, quarterly if between EUR 1,000 and EUR 7,500, or annually if below EUR 1,000. New businesses must file monthly for the first two calendar years.
Disclaimer: These calculations are estimates based on 2025 German tax rules and should not be considered professional tax advice. Consult a Steuerberater for your specific situation.
Standard and reduced rates, Vorsteuer, and how VAT returns work
What are the VAT rates in Germany?
Germany has two VAT rates: 19% standard rate (Regelsteuersatz) for most goods and services, and 7% reduced rate (ermäßigter Steuersatz) for food, books, newspapers, public transport, cultural events, and hotel accommodation. Some services are VAT-exempt, including medical services, insurance, financial services, and residential property rentals.
What is Vorsteuer and how do you reclaim it?
Vorsteuer (input VAT) is the VAT you pay on business purchases. If you buy a €1,190 laptop (€1,000 + €190 VAT), you reclaim the €190 from the Finanzamt. You offset it against the VAT you collected from customers. If you collected €500 in VAT from sales and paid €300 in Vorsteuer, you owe €200 to the Finanzamt.
How often do you file VAT returns?
VAT returns (Umsatzsteuervoranmeldungen) are due: monthly if last year VAT exceeded €7,500 or in your first two business years, quarterly if between €1,000 and €7,500, and annually if under €1,000. Returns must be filed by the 10th of the following month. You can apply for a Dauerfristverlängerung to extend the deadline by one month.
What is the Reverse-Charge for EU transactions?
For B2B services between EU countries, the buyer (not the seller) declares the VAT in their country. You invoice without VAT and note "Steuerschuldnerschaft des Leistungsempfängers" on the invoice. You need the customer valid USt-IdNr. This also applies to certain domestic transactions like construction subcontracting.
What is a USt-IdNr and how do you get one?
The USt-IdNr (Umsatzsteuer-Identifikationsnummer) is your EU VAT identification number. It starts with "DE" followed by 9 digits. You need it for intra-EU trade. Apply at the Bundeszentralamt für Steuern (BZSt) — it is free and usually arrives within 1-2 weeks. Kleinunternehmer can also get one if they trade within the EU.
What mistakes should you avoid with VAT?
Common mistakes: missing Vorsteuer claims (leaving money on the table), incorrect VAT rates (19% instead of 7% or vice versa), not filing returns on time (triggers Verspätungszuschlag), and missing Zusammenfassende Meldung for EU sales. The most expensive mistake is not registering for VAT when required — you owe the VAT but cannot charge customers retroactively.
Bundesfinanzministerium-Aligned: Based on 2025 Bundesfinanzministerium rates and thresholds. For personal advice, speak to a qualified Steuerberater (tax adviser).
Disclaimer: This calculator provides estimates based on current German tax rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax adviser before making financial decisions. Read our terms
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