In Germany, the VAT rate you charge depends on the type of product or service you’re providing. Here’s a quick breakdown:
📈 19% VAT - The standard rate
This is the default VAT rate in Germany. If your product or service doesn't fall into a special category, this is the rate you'll likely charge. Simple, right?
Examples:
Most consulting services
Digital products
Standard retail goods
📉 7% VAT - The reduced rate
Germany applies a lower 7% VAT rate to certain essential or culturally significant products and services. If your work fits into one of these categories, you’ll apply this rate:
Newspapers, magazines, books
Copyrighted services (e.g. texts, graphics, images, web content, logos)
Admission to theatres, concerts and museums
Performances by artists (film, circus, theatre, concerts)
Passenger transport
Handmade works of art (without computer processing)
Take away food
Some food and drinks
Decorative flowers
📊 0% VAT - fully exempt
In some cases, no VAT is charged at all. These exemptions usually apply to essential services like housing and healthcare, which are considered basic needs.
Sale of real estate
Letting and leasing of real estate
Medical and nursing services
📌 Why this is important
Knowing (and applying) the correct VAT rate saves you hassle with the tax office – and time in your daily routine. The good news: With Accountable, you don’t have to figure this out on your own. We help you with that. Automatically and correctly.
If you're ever unsure which VAT rate to use, don’t hesitate to reach out to our Tax Coaches at tax-coach@accountable.eu! We’re here to guide you every step of the way. 🙌