Germany VAT Calculator 2026

Germany's value-added tax (Mehrwertsteuer/Umsatzsteuer) applies to most goods and services at a standard rate of 19%. A reduced rate of 7% applies to food, books, newspapers, local public transport, hotel accommodation, and cultural events.

Businesses must display tax-inclusive prices to consumers. The VAT system uses an input tax credit mechanism where businesses can deduct VAT paid on purchases from VAT collected on sales.

Small businesses with annual revenue below €22,000 can opt for the small business exemption (Kleinunternehmerregelung) and are not required to charge VAT.