VAT

 

The prevalent VAT rate in Germany stands at 19%. A lower VAT rate of 7% is applicable to certain goods and services. Meanwhile, some services, like banking, health, and social work, are exempt from VAT.

The German VAT

The VAT system is based on the delivered goods and services of daily life in the company and in the private sector. Due to Germany's membership in the EU, the VAT system is significantly influenced by EU regulations. In addition, due to the global linkage, VAT is also a factor for exports and imports of goods and services outside the EU. In these three areas of national, EU-wide and ex-territorial goods and services, there are considerable requirements for documentaton and administraton, and therefore VAT is a factor that must be taken into account