German VAT calculator 2026

The standard rate (Regelsteuersatz) is 19% under §12 Abs. 1 UStG. The reduced rate (ermäßigter Steuersatz) is 7% and covers food, books, newspapers, local public transport and restaurant meals (food only) from 2026. A zero rate applies under §12 Abs. 3 UStG to qualifying solar PV installations of up to 30 kWp.

At 19%: VAT = gross × 19/119, which is approximately 15.97% of the gross price. At 7%: VAT = gross × 7/107, approximately 6.54% of the gross price. The net price equals the gross divided by 1.19 (at 19%) or by 1.07 (at 7%).

From 1 January 2026, the 7% reduced rate applies permanently to restaurant meals (Verpflegungsdienstleistungen), as confirmed by the BMF administrative letter of 22 December 2025. Beverages — including soft drinks and alcoholic drinks — remain subject to the 19% standard rate. Mixed invoices must list food and beverages on separate lines.

Under §19 UStG, businesses whose prior-year turnover did not exceed €25,000 and who do not expect to exceed €100,000 in the current year are exempt from charging VAT. They do not show VAT on their invoices and cannot reclaim input tax (Vorsteuer). These thresholds have applied since 2025.

Yes. Under §12 Abs. 3 UStG, the supply and installation of solar PV systems with a capacity of up to 30 kWp on residential buildings, garages and publicly used buildings has been zero-rated since 2023. The installer must verify that the installed system capacity falls within the qualifying limit.