VAT is a general consumption tax that is levied directly on the goods and services consumed by customers in Germany.
The different VAT rates in Germany are:
|Rate||Type||Goods and services|
|19%||Standard||All other taxable goods and services|
|7%||Reduced||Certain foods, firewood, medical and dental care, water supplies, medical equipment for disabled persons, books,…|
|0%||Zero||Intra-community and international transport (excluding road and rail and some inland waterways transport)|
The VAT rate on meals (excluding beverages) provided in restaurants and other catering services has been temporarily reduced from 19% to 7% during the Covid-19 pandemic. This reduction has been extended to 31 December 2023 due to increasing inflation.
Additionally, the supply of gas and heat are now also taxed at 7% from 1 October 2022 until 31 March 2024 due to the increase energy costs for private households.