The standard rate, the reduced rate, what qualifies for each, plus zero-rated and exempt categories, import VAT, historical rates and the thresholds for foreign sellers.
Last updated 14 June 2026 · Free to cite with a link
The standard German VAT (Umsatzsteuer) rate is 19%, and the reduced rate is 7%. These have applied since 2007, apart from a temporary cut to 16% and 5% from July to December 2020. There is no general 0% rate; some supplies are zero-rated or exempt (below).
| Rate | Applies to |
|---|---|
| 19% | Standard rate. Most goods and services, and most cross-border e-commerce sold to German consumers. |
| 7% | Reduced rate. Food, books, newspapers, public transport, hotel rooms, cultural admissions and more (full list below). |
| 0% | Zero-rated (tax-free with input VAT recovery): exports to non-EU countries; intra-Community supplies to VAT-registered EU businesses. |
| Exempt | Exempt (no input VAT recovery): financial and insurance services, medical and dental care, education, long-term property rental. |
The reduced rate covers a defined list (Annex 2 to the German VAT Act). The most relevant categories:
Goods imported into Germany from outside the EU are charged import VAT at 19% (or 7% for reduced-rate goods). A VAT-registered importer generally deducts it as input VAT (Vorsteuer), so for a registered seller it is cash-flow, not a final cost.
Knowing the rate matters once you have to charge it. For a foreign company:
Use the free VAT check to see which applies to you, or the German VAT calculator to estimate what you would owe. Ready to register? See German VAT registration for foreign companies, or read the complete German VAT guide.
Free to cite with a link: Vaytax, "German VAT Rates (2026)", https://vaytax.com/german-vat-rates
The standard rate is 19%; the reduced rate is 7% on food, books, public transport, hotel rooms and more. Both have applied since 2007, apart from a temporary cut to 16% and 5% in the second half of 2020.
Most groceries, books, e-books, newspapers and magazines, public transport, hotel rooms, cultural admissions, plants, and water supply. Restaurant meals returned to 19% on 1 January 2024.
No general 0% rate. Exports outside the EU and intra-Community B2B supplies are zero-rated (tax-free with input VAT recovery); financial, insurance, medical and education services are exempt without recovery.
None if you store stock in Germany, register from the first euro. The €10,000 threshold is for cross-border B2C distance sales (OSS); the €25,000 Kleinunternehmer threshold is a domestic rule generally not available to foreign sellers.
German VAT registration and returns handled by a licensed German tax advisor. €1,199/year all-in with registration included, or €79/month if you already have a German VAT number.
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