The VAT rate
Since January 2007, the sales tax in Germany has been a uniform 19% for all services (ref: Section 12, Paragraph 1 of the VAT Act). However, a reduced tax rate of 7% applies instead to a large number of goods and services (Section 12, Paragraph 2 of the VAT Act), for example for:
- groceries
- products from publishers (e.g. magazines, books)
- certain cultural offerings (e.g. theater, concerts, museums)
- local public transport
- services of a dentist/technician
- circus performances
- rental of living and sleeping rooms (e.g. hotels)
