Value Added Tax on funeral services in Germany – can it be refunded?
A legal overview of VAT on burial costs (Umsatzsteuer auf Bestattungsleistungen)
When a person dies in Germany, their family usually covers the costs of the funeral via a funeral home (Bestattungsinstitut). These services typically include: transportation of the body, washing and shrouding, coffin, announcements, coordination of the burial and other related services.
At the bottom of the invoice there is often one item that raises particular questions: Value Added Tax (VAT / Mehrwertsteuer / Umsatzsteuer), which may be charged at a rate of up to 19%.
This leads to three key questions:
Is this tax refundable?
Can it be deducted for tax purposes?
Or must the heirs bear the full burden?
In Germany, most funeral services are subject to VAT at the following rates:
19% on the majority of services, such as:
organising and managing the funeral,
providing or renting a coffin or funeral hall,
printing and publishing announcements and notices,
administrative and service fees charged by the funeral home.
7% or exempt in certain cases, for example:
municipal cemetery fees (kommunale Friedhofsgebühren),
purely religious funeral rites without commercial elements.
In practice, however, most invoices issued by funeral homes include VAT at 19%.
The short answer is: No, there is no direct refund.
The VAT paid on funeral invoices is not reimbursed in cash by the tax office (Finanzamt).
Unlike input VAT in a business context, private relatives cannot simply reclaim this tax.
Yes, but only under strict conditions.
Funeral expenses – including the embedded VAT – can, in certain situations, be claimed as
“außergewöhnliche Belastungen” – extraordinary burdens
in the German income tax return (Einkommensteuererklärung).
The main conditions include:
| Condition | Explanation |
|---|---|
| The costs are borne by close relatives | No deduction is allowed if a third party (e.g. an insurance company) has paid in full |
| The expenses are not covered by the estate or a policy | If the estate is sufficient to cover the costs, the tax office will often reject the claim |
| Proper invoices can be provided | These must be submitted with the tax return |
| Costs exceed the taxpayer’s “reasonable burden” | Threshold depends on income, marital status and number of children |
Important: VAT is not treated separately, but is included as part of the total funeral expenses when calculating any tax deduction.
Using Islamic or non-profit funeral associations:
Some Islamic funeral associations operate as non-profit organisations, and certain services may not be subject to the full 19% VAT.
Purchasing specific services separately:
If, for example, the shroud (Kafan) or ritual washing is organised independently of a commercial funeral home, these items may fall outside the scope of the standard 19% rate, depending on their legal classification.
Funeral pre-arrangements (Bestattungsvorsorgevertrag):
Entering into a funeral pre-arrangement contract in advance can help to plan and structure costs and, depending on the arrangement, may reduce the financial burden later on.
In Germany, VAT on funeral services is generally an integral part of the funeral invoice and is not directly refunded by the state.
However, under certain conditions, the total funeral costs – including VAT – can be claimed as “extraordinary burdens” in the income tax return.
Therefore it is advisable to:
keep all invoices and supporting documents,
consult a tax advisor (Steuerberater) or wage tax assistance service,
clarify whether, and to what extent, a tax deduction is possible in your specific case.
The authors and editorial team of this website strive to provide accurate information based on thorough research and multiple sources. Nevertheless, errors may occur or some information may be incomplete or not fully verified. Please treat the information in this article as an initial guide only and always consult the competent authorities and qualified experts for definitive and legally binding advice.
