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) |
The VAT rate on meals (excluding beverages) provided in restaurants and other catering services has been temporarily reduced from 19% to 7% during the Covid-19 pandemic. This reduction ends 31 December 2023.
Additionally, the supply of gas and heat are now also taxed at 7% from 1 October 2022 until 31 March 2024 due to the increase energy costs for private households.
There is an exemption limit for gifts. In 2024, this limit is €50. In 2023 this limit was €35.