Germany Reverse VAT (MwSt) Calculator.

Germany's VAT system, known locally as Mehrwertsteuer (MwSt) — literally "value added tax" — or sometimes Umsatzsteuer (USt), is one of the original VAT systems in Europe. Germany introduced VAT in 1968 as part of European harmonization efforts. The standard rate is 19%, and Germany also has a reduced rate of 7% that applies to a range of goods and services.

The 19% standard rate applies to most goods and services in Germany including electronics, clothing, furniture, restaurant meals, most professional services, and motor vehicles. The 7% reduced rate applies to food for home consumption (supermarket groceries), books, newspapers, cultural and entertainment services, public transit, hotel accommodation, and many agricultural products. Germany was particularly notable for temporarily reducing its standard VAT rate from 19% to 16% and its reduced rate from 7% to 5% for six months in 2020 as a COVID-19 economic stimulus measure — an unprecedented experiment in using VAT cuts to stimulate consumer spending.

Germany's VAT registration threshold for foreign sellers without a German establishment is technically zero — any supply of goods or services to German customers by a non-established seller may require registration, though practical enforcement thresholds exist. Domestic businesses generally must register when annual turnover exceeds €22,000 (the Kleinunternehmer threshold for small businesses).

Germany uses a monthly or quarterly VAT return system (Umsatzsteuervoranmeldung) depending on the business's VAT liability. Annual summary returns are also required. Germany is known for rigorous VAT compliance enforcement, with the Finanzbehörden (tax authorities) actively auditing businesses.

For tourists from outside the EU visiting Germany, VAT refunds are available on retail purchases. Visitors must request a "Tax Free" form from participating retailers, have it stamped at customs at the point of exit from the EU, and then claim the refund either immediately at the airport or by mail.