This guide is for e-commerce companies that sell online via web stores or at marketplaces.
Web: German VAT rates
VAT Standard rate
The standard VAT rate in Germany in 2022 is 19%.
VAT Reduced rate
See the summary of the EU VAT rates
From the 1st of July 2021, the distance selling thresholds were withdrawn and replaced by a unified threshold of EUR 10,000 for all EU members.
In other words, VAT should be charged at the VAT rate of the customer’s country of residence by companies whose annual taxable cross-border turnover is over EUR 10,000.
If goods or services were used to make taxable supplies in Germany, VAT in input invoices might be credited. Examples include:
- VAT paid at custom clearance with your EORI number
- VAT paid to German suppliers
If the company paid invoices before VAT registration it may deduct them after registration.