German VAT rates: 19 %, 7 % and 0 % under section 12 UStG

The essentials in brief

• Standard rate: 19 percent of the tax base (section 12 (1) UStG).
• Reduced rate: 7 percent for the supplies in section 12 (2) UStG, including deliveries of the goods listed in Annex 2.
• Zero rate: 0 percent for certain supplies of solar modules to operators of a photovoltaic system (section 12 (3) no. 1 UStG).
• The period counts: from 1 July to 31 December 2020 the rates were 16 and 5 percent (section 28 UStG).
• Several rates on one invoice: if a machine calculates the tax amount automatically, it may be shown as one sum if the tax rate is stated for the items (section 32 UStDV).
• EU rates: for sales to other EU countries see EU VAT rates under OSS.

The standard rate: 19 percent

Under section 12 (1) UStG the tax is 19 percent of the tax base for every taxable supply. That is the rate that applies unless a reduction applies.

The reduced rate: 7 percent

Under section 12 (2) UStG the tax is reduced to 7 percent for the supplies listed there. They include:

On no. 15: this version has applied since 1 January 2026 and has no end date (Art. 4 no. 2 and Art. 12 (2) of the Steueränderungsgesetz 2025 of 22 December 2025, BGBl. 2025 I no. 363). Since then food in restaurants and catering services is taxed at 7 percent; the supply of drinks is excluded.

Whether a good is in Annex 2 is decided by the annex itself. Do not rely on rules of thumb such as "food is always 7 percent".

The zero rate: 0 percent

Under section 12 (3) no. 1 UStG the tax is reduced to 0 percent for supplies of solar modules to the operator of a photovoltaic system, including essential components and storage, if the system is installed on or near private homes, apartments and certain public and other buildings. The conditions are deemed met if the installed gross capacity according to the Marktstammdatenregister is not more than 30 kilowatts (peak), or will not be.

Rates in the past

The statute sets out transitional rules in section 28 UStG:

Example: 100 euros net

The example is an arithmetic illustration. At 16 percent, as in the second half of 2020, the gross amount would be 116.00 euros.

Several tax rates on one invoice

If supplies or services on one invoice are subject to different tax rates and a machine determines the tax amount automatically, the tax amount may be shown as one sum if the tax rate is stated for the individual items (section 32 UStDV). What else an invoice needs: mandatory invoice details in Germany.

Common mistakes

• Taking the rate from memory. Check Annex 2 and the period.
• Applying old rates to other periods, for example 16 percent outside the second half of 2020.
• Treating drinks in a restaurant as reduced. No. 15 excludes the supply of drinks.
• Treating all electronic media as books. No. 14 names exceptions, such as video and music.
• Charging 19 percent on all EU sales. There are separate rules: EU VAT rates under OSS.

How it works with VAT GPT

1. Upload files: your Amazon or eBay CSV reports and your invoices. The AI reads amounts, countries and tax rates.
2. Check the result: VAT GPT breaks down the VAT for Germany and the EU (OSS) and prepares the advance return, monthly or quarterly. For the return, VAT GPT takes the German standard and reduced rate in force at the end of the reporting period; turnover at 19 and 7 percent goes into the fields for 19 and 7 percent turnover. You check and confirm.
3. Send: with VAT GPT Pro via ELSTER directly to the tax office.

Everything is in one place: VAT return, annual VAT return, OSS return, EÜR, trade tax and income tax return. With Go you use all Pro features free of charge for 30 days. Get to know VAT GPT or create an account right away.

What VAT GPT does not do

• VAT GPT is not tax advice, for example on whether the reduced rate applies to your supply.
• The AI reads amounts, countries and tax rates; whether the rate on a receipt is right for the supply is for you to check.

What does VAT GPT cost?

Free (basic features, free of charge), Go (30 days free with all Pro features), Pro €49 per month or €444 per year, each including VAT.

Frequently asked questions

Which VAT rates exist in Germany? 19 percent (section 12 (1) UStG), 7 percent (section 12 (2) UStG) and 0 percent for certain photovoltaic supplies (section 12 (3) UStG).

Which goods are taxed at 7 percent? The goods in Annex 2, for example books and newspapers (no. 49), and the other supplies in section 12 (2) UStG.

Does 7 percent apply in restaurants? Section 12 (2) no. 15 UStG names the reduced rate for restaurant and catering services except drinks.

Which rates applied in 2020? From 1 July to 31 December 2020 they were 16 and 5 percent (section 28 UStG).

How do I convert gross to net? Divide the gross amount by 1.19 (19 percent) or 1.07 (7 percent).

Further reading

• EU VAT rates under OSS
• Mandatory invoice details in Germany
• Small-amount invoices up to 250 euros
• Input VAT deduction in Germany: conditions

Not tax advice: the content does not replace individual advice.

Sources

• Section 12 UStG (in German)
• Annex 2 UStG (in German)
• Section 28 UStG (in German)
• Section 32 UStDV (in German)
• Steueränderungsgesetz 2025, BGBl. 2025 I no. 363 (in German)