WHAT IS THE TAX RATE FOR ONLINE SALES OF GOODS AND SERVICES IN GERMANY?

Germany is one of the members of a European Union country and follows the tax rules of the European Union Value Added Tax (VAT) Directive. To buy or sell a good or service inside or outside the European country, you’ve pay tax to that particular country where you’re buying or selling the product. Most of you might have the following question in mind: What is the tax rate for online sales of goods and services in Germany? Well, this page covers all about the tax rate for e-commerce services in Germany. 

Tax Rules

Generally, the tax rules are the same in all the European Union countries. Based on the service and the consumer type, the tax amount may vary inside & outside the European country. Now, let’s see the tax rate for online sales in Germany briefly.

 

Inside the European country

In an EU country, you’ll be charged about 15% to 27% VAT whenever you buy or sell a good or service. The charge depends on the product and the country of consumers. 

 

Outside the EU country

When you sell or buy a good or service outside the EU country, 0% VAT charges are applied. This charge is applicable for both business-to-business (B2B) and business-to-customer (B2C) conditions.

The VAT charge on Digital goods

If you’re a resident of Germany and buy or sell goods or services online, the VAT charge is applied according to the country’s rules. If you’re a non-native to Germany, then the VAT charge depends on the buyer or seller's country. 

 

The standard VAT charge in Germany is 19%, and the charge for the reduced rate for certain products is 7%.