Germany VAT calculator

German VAT (Umsatzsteuer, in everyday language Mehrwertsteuer or MwSt) has two main rates under § 12 of the VAT Act. The standard rate is 19% of the net price and applies to most goods and services. The reduced rate is 7% and applies to the goods listed in Annex 2 of the Act, such as most food and books, and to services such as local public transport, hotel stays and restaurant meals.

Multiply the net price by 1.19 to get the gross price, or multiply it by 0.19 to get the VAT alone. At the reduced rate, multiply by 1.07 instead. The VAT is always charged on the net price, so it is a fixed share of the net amount, not of the final price. Enter the net amount, choose 'Add VAT' and the rate, and the calculator does the rest to the cent.

Divide the gross price by 1.19 (standard rate) or 1.07 (reduced rate) to get the net price; the difference is the VAT. Do not simply subtract 19% of the gross price: that removes too much, because the VAT was charged on the lower net price. Choose 'Remove VAT' and the calculator splits any gross amount into net price and VAT to the cent.

Restaurant and catering services are taxed at the reduced 7% rate under § 12 (2) no. 15 of the VAT Act, with the exception of drinks, which stay at 19%. A restaurant bill therefore often contains both rates: food at 7% and drinks at 19%. The calculator handles one rate at a time, so work out the food and the drinks separately.

They are the same tax. Umsatzsteuer is the legal name used in the VAT Act (Umsatzsteuergesetz, UStG) and on invoices and tax returns, while Mehrwertsteuer (MwSt) is the everyday name for value added tax. Businesses charge it on their sales, deduct the VAT they paid on purchases as input tax (Vorsteuer) and pay the difference to the tax office.