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This guide provides a detailed overview of VAT (Value Added Tax) in Germany, including applicable rates, registration requirements, invoicing rules, compliance obligations, and filing deadlines. It is tailored for businesses engaging in transactions within Germany or with German customers.
The VAT system in Germany, known locally as Umsatzsteuer (USt), is based on the EU VAT Directive and was implemented under the German Value Added Tax Act (UStG). It applies to most goods and services within Germany, including imports, and follows EU regulations with local adaptations.
Euro (€)
DE followed by 9 digits (e.g., DE123456789)
No, not required.
Yes, available for businesses below the standard threshold.
| Rate | Rate Type | Description |
| 19% | Standard Rate | Applies to most goods and services |
| 7% | Reduced Rate | Applies to certain goods and services such as food, books, and cultural services |
| 0% | Zero Rate | Intra-community and export transactions |
| Business Type | VAT Registration Threshold |
| Domestic Businesses | EUR 22,000 per annum and will not exceed EUR 50,000 in the current year |
| Non-Resident Businesses | No threshold; registration required for any taxable activity in Germany |
| Frequency | Filing Deadline | Payment Deadline |
| Monthly | 10th day of the following month | 10th day of the following month |
| Quarterly | 10th day of the month following the quarter | 10th day of the month following the quarter |
| Annual | May 31 of the following year | May 31 of the following year |
| VAT on Cross-Border Electronically Supplied Services | Yes |
| VAT Rate on Digital Services | 19% |
| Threshold for Registration | EUR 10,000 per calendar year for EU-based businesses; no threshold for non-EU businesses |
| VAT on B2B Sales | Reverse charge mechanism applies |
Germany follows the EU’s ESS VAT rules. Businesses providing digital services (e.g., website hosting, software, digital media) must apply the VAT rate based on the consumer’s location, often utilizing the OSS system for cross-border services.
Access to electronic newspapers and periodicals may be exempt if used for public interest or educational purposes.
Germany’s e-invoicing mandate for domestic B2B transactions will begin from January 2025 whereby all resident taxpayers should have the capability to receive e-invoices. The sending of B2B e-invoices will gradually be implemented beginning in January of 2027 for taxpayers in excess of EUR 800 000 turnover and continuing to January of 2028 for all other taxpayers. All e-invoices in Germany should abide by the EN-16931 compliant format.
At present, B2G transactions should be sent as e-invoices through the Zentrale Rechnungseingangsplattform (ZRE) platform.
Germany has specific digital reporting requirements for cross-border EU transactions under the VIES system. Regular reporting is essential for compliance with EU VAT obligations.
Disclaimer: The information in this article is for general informational purposes only and may not cover all aspects of German VAT. Consult one of our tax professionals for specific guidance regarding your business.
| Pos. | Username | Country | Score |
|---|---|---|---|
| 1 | marko.kangasmaki@solnet.group | Finland | 100 % |
| 2 | Connor | Afghanistan | 92 % |
| 3 | Plrstrive | United Kingdom | 92 % |
| 4 | elkeg | Netherlands | 92 % |
| 5 | Cait | South Africa | 92 % |
| 6 | Chilli Dev | South Africa | 92 % |
| 7 | Brett | South Africa | 83 % |
| 8 | Quizard | South Africa | 83 % |
| 9 | Quinny Ness | South Africa | 75 % |
| 10 | Bronwynm | South Africa | 75 % |
