Question 1

How is VAT calculated in Germany?

Accepted Answer

The standard VAT rate is 19%, calculated by multiplying the item's price by 1.19. The reduced VAT rate of 7% is calculated by multiplying the item's price by 1.07.

Question 2

Is there a 20% VAT rate in Germany?

Accepted Answer

Since the VAT rate remains above the EU minimum of 15%, Germany can set its own standard VAT rate. The current standard VAT rate in Germany is 19% and applies mainly to goods and services. A reduced rate of 7% applies to certain foods, medical services, and cultural services.

Question 3

Can I reclaim VAT in Germany?

Accepted Answer

A VAT rate of 19% is charged when purchasing goods in Germany. VAT can only be refunded if the goods are purchased and exported by a consumer residing outside the European Union.

Question 4

Which products are exempt from VAT in Germany?

Accepted Answer

There are three main categories that are fully exempt from VAT in Germany: healthcare services, medical treatments, and financial services.

Question 5

Do freelancers in Germany have to pay VAT?

Accepted Answer

Whether freelancers in Germany have to pay VAT depends primarily on their revenue and whether the small business regulation applies. Under certain conditions, small businesses (Kleinunternehmer) may be exempt from charging VAT. Anyone wanting to quickly calculate their applicable tax can use a VAT calculator for this purpose.

VAT Calculator Germany

Freelance Tax Calculator Germany

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