Was ist MwSt? What is Mehrwertsteuer?
MwSt stands for Mehrwertsteuer — Germany's name for VAT (Value Added Tax). It is also officially called Umsatzsteuer (USt). Both terms are used interchangeably. Germany has two main rates: 19% (Normalsatz) and 7% (ermäßigt). The law governing it is the Umsatzsteuergesetz (UStG).
How do I calculate German VAT at 19%?
To add 19% VAT to a Netto price: multiply by 1.19. Example: €500 × 1.19 = €595 Brutto. To remove VAT from a Brutto price: divide by 1.19. Example: €595 ÷ 1.19 = €500 Netto. VAT = €595 − €500 = €95. Use our Netto ↔ Brutto calculator above for instant results.
What is taxed at 7% in Germany?
The 7% reduced rate applies to: most food and groceries, non-alcoholic beverages, books and e-books, newspapers, hotel accommodation, local public transport, museum and cinema tickets, takeaway food, prescription drugs, medical devices, and — new since January 2025 — original artworks and collectibles.
Do restaurants in Germany charge 19% or 7%?
As of 2025, restaurant and café food consumed on-site (dine-in) is taxed at 19%. Takeaway and delivery food is 7%. Beverages are always 19%. However, from January 1, 2026, a permanent 7% rate is planned for restaurant food (excluding beverages) under Germany's 2025 Tax Amendment Act.
What is the Kleinunternehmerregelung?
The Kleinunternehmerregelung (small business scheme, §19 UStG) allows German businesses with turnover up to €25,000 in the previous year (and projected under €100,000 in the current year) to be VAT-exempt from 2025. They do not charge MwSt on invoices and cannot claim input VAT (Vorsteuer).
What is Vorsteuer (input VAT)?
Vorsteuer is the German term for input VAT — the VAT a registered business pays on its own purchases. It can be offset against the MwSt collected on sales. The net amount is paid to or refunded by the Finanzamt via the Umsatzsteuervoranmeldung (VAT return), filed on ELSTER.
What is mandatory e-invoicing in Germany (2025)?
From January 2025, all German businesses must be able to receive e-invoices in structured formats (XRechnung, ZUGFeRD) for domestic B2B transactions. Mandatory issuing of e-invoices is being phased in: larger businesses from 2026, smaller businesses from 2027. B2G e-invoicing is already required.
Do German VAT numbers start with DE?
Yes. German VAT numbers (USt-IdNr.) begin with DE followed by exactly 9 digits (e.g., DE123456789). This is used for EU intra-community supplies and must appear on B2B invoices. Separately, businesses also have a Steuernummer (local tax number) for domestic returns filed with their Finanzamt.