Germany VAT Calculator 2026
Calculate German MwSt (VAT) with standard (19%) and reduced (7%) rates
Calculate VAT
Enter your amount to see the complete VAT breakdown
German Mehrwertsteuer (USt): 19% standard, 7% reduced
Germany's VAT is officially Umsatzsteuer (USt) but commonly called Mehrwertsteuer (MwSt) — the term you see on most invoices and receipts. Two main rates apply:
- 19% — standard rate, on most goods and services
- 7% — reduced rate, on basic foodstuffs, books and e-books, newspapers, public transport, cultural admission, hotel accommodation, agricultural inputs
- 0% — exports outside the EU, intra-EU B2B supplies, certain medical and educational services
- Exempt (no input recovery) — financial services, residential rentals, healthcare
German restaurants returned to 19% on food (from a temporary 7% COVID measure) on 1 January 2024. Hotel accommodation remains at 7%, but breakfast, parking, and minibar are billed at 19% — most German hotel invoices show two USt lines.
Kleinunternehmerregelung: the EUR 25,000 small-business exemption
Germany's small-business rule (Kleinunternehmerregelung §19 UStG) lets businesses with turnover ≤ EUR 25,000 in the previous year and ≤ EUR 100,000 in the current year opt out of charging USt — at the cost of losing input-tax recovery. Effective 2025 (raised from EUR 22,000 / EUR 50,000 in 2024).
Above the threshold, you must register for USt with your Finanzamt and obtain a Steuernummer. For intra-EU trade you also need a USt-IdNr(DE-prefixed) issued by the Bundeszentralamt für Steuern.
The classic 7%-vs-19% catches: takeaway, books, hotels
Takeaway food (zum Mitnehmen) is 7%. Eat-in restaurant food is 19% again since January 2024. Coffee from the same shop is 7% if takeaway, 19% if served at a table. Print books and e-books are both 7% since the 2020 alignment. Hotel rooms are 7%, but breakfast, parking, and Wi-Fi (when separately billed) are 19%. Software downloads, SaaS and most digital services are 19%.
Worked example
A Berlin consultancy bills a German corporate client EUR 5,000 net for advisory services (19%): USt EUR 950, Bruttobetrag EUR 5,950. The same EUR 5,000 to an Austrian VAT-registered company is 0% under intra-EU reverse charge — provided the Austrian UID is quoted on the invoice and reported in the ZM (Zusammenfassende Meldung).
Frequently asked questions
Is restaurant food 7% or 19% now?
19% (standard rate). The temporary 7% rate for in-restaurant food, introduced during COVID, ended on 31 December 2023. Takeaway and delivery remain at 7%. Drinks are 19% across the board.
Why does my hotel bill have two USt lines?
The room itself is 7%; everything ancillary (breakfast, minibar, parking, Wi-Fi when separately charged) is 19%. German law requires the breakdown on the invoice. Some hotels now bundle breakfast into a 7% packaged rate — it depends on contract structure.
Can a foreign business reclaim German USt?
EU businesses claim through the EU VAT refund portal in their home state. Non-EU businesses file directly with the Bundeszentralamt für Steuern using the 13th Directive procedure (with reciprocity required for certain countries). Deadlines are strict: 30 September of the following year for EU; 30 June for non-EU.
When are USt returns due?
Most businesses file monthly USt-Voranmeldungen, due the 10th of the following month (with a one-month Dauerfristverlängerung available). The annual USt return (Umsatzsteuererklärung) is due 31 July of the following year. Filings are submitted electronically via ELSTER.
Is e-invoicing mandatory in Germany?
From 1 January 2025, B2B e-invoicing is mandatory in principle (with phased acceptance periods through 2027 for outbound issuing). Inbound: every German business must be able to receive XML invoices in EN 16931 format (XRechnung or ZUGFeRD 2.x) from 1 January 2025. PDF-only invoices between businesses are gradually being phased out.
Official sources
Last reviewed: 2026-05-10.