VAT is a general consumption tax that is levied directly on the goods and services consumed by customers in Germany.
The different VAT rates in Germany are:
| Rate | Type | Goods and services |
|---|---|---|
| 19% | Standard | All other taxable goods and services |
| 7% | Reduced | Certain foods, firewood, medical and dental care, water supplies, medical equipment for disabled persons, books,… |
| 0% | Zero | Intra-community and international transport (excluding road and rail and some inland waterways transport) |
There is an exemption limit for gifts. Since 2024, this limit is €50.