Taxes
Germany — Tax: VAT
Germany's VAT (Umsatzsteuer/Mehrwertsteuer) has a standard rate of 19% applying to most goods and services, and a reduced rate of 7% for items like basic foods, books, newspapers, and local transport. As of 1 January 2026, food served in restaurants and cafés is permanently taxed at the reduced 7% rate (though drinks remain at 19%) — a change from the prior standard-rate treatment of restaurant food. Intra-EU supplies to VAT-registered businesses can qualify for a 0% rate under standard EU VAT rules.
VerifiedGovernment / official sourceBundesministerium der Finanzen / vatcalc.comLast reviewed: 2026-07-20
Key facts
- Standard VAT rate: 19% (unchanged in 2026), applying to most goods/services.
- Reduced VAT rate: 7%, applying to basic foods, books, newspapers, local transport.
- New since 1 January 2026: restaurant/café food is permanently taxed at 7% — drinks remain at the 19% standard rate.
- Intra-EU B2B supplies to VAT-registered businesses can qualify for a 0% rate under standard EU rules.
Required documents
- VAT registration (Umsatzsteuer-Identifikationsnummer)
- Invoices meeting German VAT formatting requirements
Common mistakes
- Applying the old standard 19% rate to restaurant food after the 1 January 2026 change — food is now 7%, though drinks remain 19%.
- Forgetting drinks are excluded from the new 7% restaurant-food rate and still taxed at 19%.