Published: 29 October 2026 · Updated: 29 October 2026
A net price of €100 in Germany becomes €119 gross at the standard 19% VAT rate — €19 of tax. Add or remove German VAT below, at 19% or the reduced 7%.
Germany charges 19% VAT on most goods and services and 7% on essentials — and the classic mistake is subtracting 19% from a gross price instead of dividing by 1.19. The calculator below does both directions correctly, instantly.
Researched by MixKhazana Team · Last updated 29 October 2026 · Data: German VAT Act (UStG) § 12, Federal Ministry of Finance (BMF)
German VAT (Mehrwertsteuer, officially Umsatzsteuer) is a tax on the value added at each stage of a sale, and the end consumer carries it. Two formulas cover everything. Adding VAT: gross = net × (1 + rate). At 19%, €100 net × 1.19 = €119 gross, so the VAT is €19. Removing VAT: net = gross ÷ (1 + rate). At 19%, €119 gross ÷ 1.19 = €100 net, so the VAT is €19. The common error is subtracting 19% from the gross price — €119 × 0.81 = €96.39 — which understates the net price, because the 19% was charged on the net amount, not on the gross one. The same logic holds at 7%: €100 net → €107 gross, and €107 gross → €100 net.
Which rate applies depends on the item, not the seller: most goods and services are 19%, while groceries, books, newspapers, local public transport and hotel stays are 7%. Restaurant meals eaten on the premises returned to 19% in January 2024, while takeaway food generally stays at 7% — a split that still trips up small food businesses. If you invoice clients in Germany, compare with our France VAT calculator (20% standard) or check what the amount means for take-home pay with our Germany salary-after-tax calculator.
Lena, a Berlin freelancer, quotes a client €850 net for a design project:
Her invoice shows net €850, VAT 19% €161.50, gross €1,011.50 — the three lines German invoices must carry, plus her VAT ID where applicable.
| Category | Rate |
|---|---|
| Most goods and services (standard) | 19% |
| Groceries, books, newspapers | 7% |
| Local public transport, hotel stays | 7% |
| Restaurant meals served on the premises | 19% |
| Takeaway food | 7% |
| Most exports / certain financial services | Exempt |
Germany's standard VAT rate (Mehrwertsteuer) is 19%, in place since 2007, with a reduced rate of 7% for essentials such as groceries, books, newspapers, local public transport and hotel accommodation. Some supplies, like most exports and certain financial services, are exempt.
Multiply the net price by 1.19. A net price of €100 becomes €119 gross, of which €19 is VAT. For the reduced rate, multiply by 1.07 — €100 net becomes €107 gross with €7 VAT.
Divide the gross price by 1.19 for the standard rate (or 1.07 for the reduced rate). A gross price of €119 holds €100 net and €19 VAT, because €119 ÷ 1.19 = €100. Do not subtract 19% from the gross price — that gives €96.39, which is wrong.
The 7% rate covers most groceries, books, newspapers and magazines, local public transport, hotel accommodation and certain cultural services. Restaurant meals served on the premises are charged at the standard 19% rate since January 2024; takeaway food generally stays at 7%.
Net is the price before tax, VAT is the tax amount, and gross is net plus VAT. Business-to-business quotes in Germany are usually net, while consumer prices must by law include VAT — so the shelf price you see is the gross price.
Not necessarily. Under the Kleinunternehmer (small-business) scheme in § 19 UStG, businesses with annual turnover up to €100,000 since 2025 may opt out of charging VAT — but then they cannot deduct input VAT either, and their invoices must state that no VAT is charged under § 19 UStG.
For most business-to-business supplies of goods and services inside the EU, the reverse-charge mechanism applies: the supplier invoices net without German VAT and the customer in the other EU country accounts for VAT locally, using both parties' VAT IDs. Always confirm the treatment with a tax adviser for your specific transaction.
The 19% standard rate and 7% reduced rate come from § 12 of the German VAT Act (Umsatzsteuergesetz, UStG), published by the Federal Ministry of Finance (BMF); the small-business threshold of €100,000 comes from § 19 UStG as amended from 2025.