Germany is with one of the biggest Amazon marketplaces in Europe definitely worth expanding to. This is likely to require a VAT registration in Germany. The VAT rates that apply differ within Europe from country to country and the product category is also decisive.
Maximilian GamplLast Updated on
How does VAT work in Germany?
The VAT applies almost to all goods and services that are bought and sold within the EU. Therefore, export goods which are sold abroad are normally not subject to VAT. The other way around, imports are taxed to guarantee an equal competition – on equal terms on the European market with suppliers situated outside the EU.
Germany, like any other country that is part of the EU, can set its own standard VAT rate as long as it exceeds 15%. In Germany the standard rate is 19%.
German VAT rates – depending on the product
The standard VAT rate, as mentioned before, is 19%, however, there are specific types of goods for which different rates apply.
Value Added Tax rate in Germany – 19% (Standard):
All taxable goods and services that are not listed in the following VAT rates.
VAT rate: 7% (Reduced):
Water supplies, medical equipment for disabled persons, local public transport, books, audiobooks, newspapers, periodicals, writers/composers etc., agricultural inputs, hotel accommodation, admission to cultural and certain sports events, social services, firewood, take away, medical and dental care, cut flowers and plants, taxation of gold and jewellery
Rate of 0% (Zero) in Germany
Intra-community and international transport
Due date for German VAT
The VAT in Germany has to be provided to the respective tax authorities 10 days after the VAT reporting period ends. This can either be monthly or quarterly and does naturally apply for goods and for services.
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