German VAT (Mehrwertsteuer) Explained
Germany applies two main VAT rates. The standard rate is 19% (Regelsteuersatz), applicable to most goods and services. The reduced rate is 7% (ermäßigter Steuersatz), applied to essentials including food, books, newspapers, public transport, and hotel stays. To add 19% MwSt: multiply the net price by 1.19. For example, €100 net becomes €119 gross, with €19 tax. For the 7% rate: €100 net becomes €107 gross. Germany's VAT registration threshold for small businesses (Kleinunternehmerregelung) is €22,000 in annual revenue.