Germany VAT Guide for 2026: Rates, Registration & Filing
Germany's standard VAT (Mehrwertsteuer) is 19%, with a reduced 7% rate. Learn registration requirements, OSS for cross-border sales, and filing with the Finanzamt.
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Key Takeaways
Germany's standard VAT (Umsatzsteuer) rate is 19%, with a reduced 7% rate on food, books, and public transport — and from 1 January 2026, permanently on restaurant and catering food (though drinks stay at 19%). A non-established business must register as soon as it makes taxable supplies, with no threshold; for EU-wide B2C distance sales, VAT is due once sales exceed the EU-wide EUR 10,000 threshold. SaaS and digital products are taxable at 19%, typically accounted for via OSS by non-resident sellers; financial, medical, and education services are exempt.
Taxability Snapshot
SaaS
Taxable
Digital Goods
Taxable
Sales Tax Rates
Germany's standard VAT rate (Umsatzsteuer) is 19%, with a reduced 7% rate on food, books, and public transport. From 1 January 2026, the 7% reduced rate also applies permanently to restaurant and catering food, though drinks stay at 19%. VAT is administered by the local Finanzamt and the Federal Central Tax Office.
Rate | Applies to |
|---|---|
Standard 19% | Most goods and services |
Reduced 7% | Food, books, transport, restaurant food (from 2026) |
Zero 0% | Intra-EU and export supplies |
Germany is phasing in mandatory B2B e-invoicing, with receipt capability required from 2025 and issuance obligations rolling out through 2027 and 2028.
Germany VAT Calculator
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Germany · MwStRates as of September 2026. Source: BMJ: UStG section 12 (opens in a new tab); BMF: Tax changes 2026 (opens in a new tab).
Germany · Standard rate
19%
MwSt rate
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This is an estimate. Whether a sale is taxable, and at which rate, depends on what you sell, who you sell to and where it's supplied. If you intend to rely on these rates, please use the Kintsugi platform.
Registration & nexus threshold
Germany uses VAT registration rules rather than US-style economic nexus. A non-established business must register as soon as it makes taxable supplies in Germany, with no threshold [2]. For cross-border B2C sales within the EU, VAT is due in the customer's country once total EU distance sales exceed the EU-wide EUR 10,000 threshold, reportable through the One Stop Shop [3]. A small domestic business may use the Kleinunternehmer exemption below its national turnover limit [4]. Registration steps are in the How to Register section.
Filing frequency & deadlines
Filing frequency depends on VAT due: monthly if prior-year VAT exceeds €9,000, quarterly if between €2,000 and €9,000, and annually if €2,000 or less (with Finanzamt approval). Returns and payment are due by the 10th of the following month, with a permanent filing extension (Dauerfristverlängerung) available on application.
Exemptions
Exports and intra-EU B2B supplies are zero-rated, and financial, medical, and education services are exempt. SaaS and digital products are taxable at 19%; for B2C sales to German consumers, non-resident sellers charge German VAT, typically via OSS.
Penalties
Late filing can draw a surcharge of up to 10% of the VAT due (capped at €25,000), and late payment accrues interest of around 1% per month. The Finanzamt may also impose additional penalties for persistent non-compliance.
Sources
[1] European Commission — VAT rates (Germany 19% standard, 7% reduced)
[3] Federal Central Tax Office (BZSt) — One Stop Shop (EU-wide EUR 10,000 threshold)
[4] German Federal Ministry of Finance — Kleinunternehmer small-business rule
[5] German Federal Ministry of Finance — Fiscal Code (objection and fiscal court appeal)
[6] German Federal Ministry of Finance — Mandatory e-invoicing rollout
Verified July 2026 against German Federal Ministry of Finance, Federal Central Tax Office, and European Commission guidance.
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