Germany VAT Rates and Compliance (2026)

Learn about Germany’s 2026 VAT rates, registration rules, invoicing, and compliance tips for businesses selling goods or digital services.

By Christy Bieber

Published:

June 12, 2026

Rates and Thresholds

Tax Rate

19%

Non-Resident Threshold

First sale

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Taxable Transactions

• B2B Sales: Reverse charge
• B2C Sales: Yes
• Digital Goods: Yes

If you sell products or services in Germany, you may become responsible for collecting value-added tax (VAT) on those sales. This is true whether you are located in Germany or in another country, and whether your customers are individual consumers or other businesses.

Germany, as a member of the EU, must align its tax laws with the EU’s VAT framework; however, Germany can determine its own VAT rates.

How VAT works in Germany

In Germany, VAT is called Mehrwertsteuer (MWSt). Germany charges VAT at two different rates, as well as a 0% rate, and any company (domestic or foreign) selling to German customers may be expected to register to collect VAT at the correct rate on taxable transactions.

German VAT rates

• 19% standard VAT rate: Applies to all taxable goods and services that are not subject to the reduced VAT rate, zero-rated, or exempt.
• 7% reduced VAT rate: Applies to some food, medical equipment for the disabled, certain types of transport, books and periodicals including digital and audio books except harmful content, cultural and sporting event admission, some hotel accommodations, agricultural inputs, firewood, timber for industrial use, cut flowers, and plants for decorative use.
• 0% VAT rate: Applies to specific intra-EU supplies to VAT-registered businesses and certain international transport services related to exports or imports.

Items exempt from VAT include some healthcare, educational, financial, and cultural services; real estate; charitable activities; insurance and reinsurance; and postal services. There is also a small business exemption for companies with taxable turnover not exceeding €22,000 in the previous year and expected not to exceed €50,000 in the current year.

Registering for VAT

Companies must register for a VAT number and begin collecting VAT once turnover reaches a predefined threshold.

Resident vs. non-resident businesses

Businesses established in Germany must register for VAT if their taxable turnover exceeded €22,000 in the previous year.

No VAT registration threshold exists for companies based outside Germany; they must register after their first taxable sale.

For EU businesses making cross-border B2C sales, the EU €10,000 distance-selling threshold determines where VAT is due.

Who needs to register

You must register for VAT in Germany if you:

• Make taxable sales not covered by an exemption or simplification scheme.
• Store goods in Germany or sell through platforms like Fulfilled by Amazon (FBA).

How to register

Submit an application to the relevant local tax office with company details and expected turnover. After registration, a German VAT number is issued.

When to charge tax

You don’t necessarily have to collect VAT on every sale. Determine:

• If you meet VAT registration thresholds or use the One-Stop Shop.
• If items sold are taxable.
• Who is responsible for collecting the tax.

Reverse charges

Under the reverse charge mechanism, the buyer is responsible for paying VAT on certain transactions with German companies.

B2B vs. B2C

Your obligations differ based on whether you sell to businesses (B2B) or consumers (B2C). B2B may shift VAT obligations to the buyer, while B2C can utilize the One-Stop Shop for compliance.

Marketplace facilitators

If you sell via a marketplace, the facilitator may be liable for VAT compliance.

VAT deductions

Claim deductions for input VAT when submitting German VAT returns; ensure you have a VAT-compliant invoice.

Statute of limitations

The statute of limitations for VAT collection in Germany is four years, extendable in cases of negligence or intentional evasion.

Staying compliant with German VAT regulations

Maintain compliance with regulations related to invoicing and record-keeping.

Invoicing requirements

A VAT-compliant invoice must include:

• A unique sequential number.
• Supplier’s and recipient’s names and addresses.
• Date of supply or service.
• Goods/services description.
• Net amount.
• Applicable VAT rate and amount.
• Total payable.
• Any VAT exemptions.

Filing VAT returns

File your VAT return online; frequency varies based on net VAT due.

Filing deadlines

The deadline for filing is the 10th day of the month after the return period.

Recordkeeping requirements

Keep records for 10 years.

Risks of noncompliance

Noncompliance includes audits, interest charges, and fines which may jeopardize your company’s stability.

Tips on staying compliant with German VAT regulations

Consider programs like One-Stop Shop to simplify VAT compliance.

One-Stop Shop and Import One-Stop Shop

These programs simplify EU VAT compliance for businesses selling goods in multiple EU countries.

Software solutions

Utilizing solutions like Numeral can streamline your VAT and sales tax compliance process.

Final thoughts

Knowledge of taxable items and VAT registration in Germany and other countries where you operate is essential for compliance. Numeral can assist in understanding and complying with VAT rules.