The value added tax is levied on sales made by a domestic entrepreneur within the framework of his company. Taxable revenues include deliveries of goods or other services.
The standard VAT tax rate is 19 percent. For certain sales a reduced rate of 7 percent is applicable. The reduced tax rate applies e.g. for books and newspapers, for many food products and also for certain transport services.
Certain sales are exempt from VAT. Particular reference should be made here to export deliveries and intra-EU community sales.
Every business is generally required to submit VAT tax returns no later than the 10th day after the end of a calender month. However, extensions of that period and also simlifications for small business are available.
A VAT return can be submitted electronically via the "ELSTER" webpage to the tax office.
For VAT purposes it is very important that an invoice includes:
For invoices with amount below EUR 150 (including VAT) simplification rules exist. For the deduction of input VAT the following information should be included on such invoices:
Similar simplifications also apply to tickets.
Our accountants and tax advisers are based in Munich/Germany. If you have any questions please feel free to send a message: