VAT Calculator Germany | 2024 Umsatzsteuer Guide (19% & 7%)
Utilize the Germany VAT Calculator to swiftly change or eliminate the VAT (USt) based on the standard 19 percent amount as well as the reduced rate of 7%. It is ideal to calculate invoices, accounting for business or refunds for tourist expenses Our tool will give precise results in just a few minutes.
VAT Calculator Germany
What is VAT (USt) in Germany?
In Germany, Value-Added Tax (VAT) is called Umsatzsteuer (USt) or Mehrwertsteuer (MwSt). It is applied to all items and services sold within Germany.
- Standard VAT Rate: 19%
- Low VAT rate: 7% (on things like food, books or public transportation)
- Zero-rated and Exempt Services: Healthcare, education financial transactions, exports
Germany’s VAT system is compliant in accordance with EU tax directive which was enacted in 1968..
How to Calculate VAT in Germany
Add VAT
Formula: VAT Amount = (Original Cost x VAT%) / 100 Total Price = Original Cost + VAT
Example:
- Base Price = EUR30,000
- VAT (19%) = EUR30,000 x 0.19 = EUR5,700
- Total = EUR30,000 + EUR5,700 = EUR35,700
Remove VAT (From VAT-Inclusive Price)
Formula: VAT = Total – (Total x (100 / (100 + VAT %))) Net Price = Total – VAT
Example:
- VAT-Inclusive Price = EUR30,000
- VAT = EUR30,000 – (EUR30,000 x 100 / 119) = EUR4,789
- Net Price = EUR30,000 – EUR4,789 = EUR25,211
VAT Rates in Germany (2024)
| Rate | Applies To |
|---|---|
| 19% (Standard) | The majority of goods and services |
| 7% (Reduced) | Books, groceries newspaper, hotel stay transportation for public transportation |
| 0% (Zero-rated or Exempt) | Banking, medical care education, exports residential leases |
Temporary Reduction in VAT
| Date | Standard Rate | Reduced Rate |
|---|---|---|
| Jul-Dec 2020 | 16 percent (temporary COVID Relief) | 5% |
The reduction was introduced to boost the economy during the outbreak and was to expire on the 31st of December in 2020..
Exempt or Zero-Rated Services in Germany
These services don’t require taxation and are tax-free:
- Exports to countries outside the EU
- Intra-community EU deliveries
- Services for banking and financial institutions
- Treatments for medical and health
- Real property transactions (buy/sell/lease)
- Training and education
- Long-term residential rentals
VAT Refunds in Germany (for Tourists)
Refund Range: 6.1% – 14.5% Minimum Purchase: EUR25 per receipt Eligibility:
- Non-EU residents
- Aged over 18
- The goods must be exported within 3 months of purchase.
- Must present export validation (customs stamp) at departure
VAT on Cars in Germany
- The purchase of a car is subject to standard 19% VAT rate.
- Automobiles tend to be more affordable when you live in Germany than in others (including those in the US) regardless of VAT.
FAQs – VAT in Germany Explained
Q: Do I have the obligation to cover VAT when I am in Germany?
A: Yes. VAT is applied to a majority of products and services, at 19 percent or 7.7% for the essential items.
Q: Is VAT refundable in Germany for foreigners?
A: Yes. Visitors from outside Europe are entitled to claim back 6.1 percent to 14.5 percent for purchases of more than EUR 25.
Q What’s the German VAT system function?
VAT is included in the retail price. Businesses collect it, and then pay them to German Tax Office (Finanzamt).
Q: What is the VAT rate on cars that are sold in Germany?
A: All cars are subject to 19 percent TVA at the time of the sale.
Q: What is the background of the VAT system in Germany?
A: VAT was first introduced at the beginning of the year 1968 at 11 percent. The rate increased by 16% from 2006 before rising to 19 percent in 2007. A temporary cut of 16% implemented in 2020, during COVID-19.
Try Our Other VAT Calculators:
- VAT Calculator France – 20%, 10%, 5.5%
- VAT Calculator Italy – 22%, 10%, 4%
- VAT Calculator Netherlands – 21%, 9%, 0%
