The two German VAT rates
Germany (Mehrwertsteuer, MwSt.) has a standard rate of 19% for most goods and services, and a reduced rate of 7% for essentials such as most food, books, newspapers, local public transport and hotel stays. Restaurant meals served on site are taxed at 19%.
Example at 19%
A invoice shows €2,000 net for consulting work. Gross = 2,000 × 1.19 = €2,380, so the VAT is €380. Going backwards from a €2,380 gross invoice: 2,380 ÷ 1.19 = €2,000 net.
Example at 7%
Groceries cost €50 net. Gross = 50 × 1.07 = €53.50, with €3.50 of VAT. From a €53.50 receipt: 53.50 ÷ 1.07 = €50.00 net.
Checklist for German invoices
- Confirm whether each line is taxed at 19% or 7% — mixed invoices must show both.
- Small businesses under the Kleinunternehmer rule charge no VAT at all.
- Reverse-charge applies to many B2B services from abroad — no German VAT is added.