# Germany VAT Guide for 2026: Rates, Registration & Filing

Canonical: https://trykintsugi.com/sales-tax-guides/europe/germany
Published: June 30, 2026

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.

- **SaaS:** Taxable
- **Digital Goods:** Taxable

## Key Takeaways

Germany's standard VAT (Umsatzsteuer) rate is 19%, with a reduced 7% rate on food, books, and public transport — and from January 1, 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

## Sales Tax Rates

Germany's standard VAT rate (Umsatzsteuer) is 19%, with a reduced 7% rate on food, books, and public transport. From January 1, 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.

#### 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)](https://taxation-customs.ec.europa.eu/taxation/vat/vat-directive/vat-rates_en)

- [2] [German Federal Ministry of Finance — VAT obligations for non-established operators (registration, filing, input VAT)](https://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Steuerarten/Umsatzsteuer/Merkblaetter/2017-11-28-englische-fassung-informationsblatt-zu-umsatzsteuerrechtlichen-pflichten-fuer-nicht-in-der-europaeischen-union-ansaessige-unternehmer.pdf)

- [3] [Federal Central Tax Office (BZSt) — One Stop Shop (EU-wide EUR 10,000 threshold)](https://www.bzst.de/EN/Businesses/VAT/OSS_non_Union/OSS_non_union_scheme/OSS_non_union_scheme_node.html)

- [4] [German Federal Ministry of Finance — Kleinunternehmer small-business rule](https://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Steuerarten/Umsatzsteuer/Umsatzsteuer-Anwendungserlass/2025-03-18-sonderregelung-kleinunternehmer.pdf)

- [5] [German Federal Ministry of Finance — Fiscal Code (objection and fiscal court appeal)](https://www.bundesfinanzministerium.de/Content/EN/Downloads/Resources/Laws/2018-03-26-fiscal-code.pdf)

- [6] [German Federal Ministry of Finance — Mandatory e-invoicing rollout](https://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Steuerarten/Umsatzsteuer/Umsatzsteuer-Anwendungserlass/2025-10-15-einfuehrung-obligatorische-e-rechnung.pdf)

Verified July 2026 against German Federal Ministry of Finance, Federal Central Tax Office, and European Commission guidance.

#### Frequently asked questions

### What is the Germany VAT rate in 2026?

Germany's standard VAT rate is 19%, with a reduced 7% rate on food, books, transport, and — from 2026 — restaurant food.

### When do I register for VAT in Germany?

Domestic businesses at €25,000 turnover; non-residents from the first taxable supply; EU B2C sellers at the €10,000 pan-EU threshold, usually via OSS.

### Is SaaS taxable in Germany?

Yes. SaaS and digital products are taxable at 19%; non-resident sellers to German consumers usually account for it through OSS.

### What is the OSS scheme?

The One Stop Shop lets EU B2C sellers file a single quarterly return for all member states instead of registering in each, once cross-border sales exceed €10,000.

### When are German VAT returns due?

By the 10th of the following month; monthly, quarterly, or annual frequency depends on the VAT due.

### What is the penalty for late German VAT?

A late-filing surcharge of up to 10% of the VAT due (max €25,000), plus roughly 1% per month interest on late payment.