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What is the reduced VAT rate?
In Germany, there are two main VAT rates (Mehrwertsteuer / Umsatzsteuer):
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Standard rate: 19%
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Reduced rate: 7%
The reduced rate of 7% is designed to lower the tax burden on basic goods and services or those considered cultural or essential.
When does the reduced rate (7%) apply?
1. Basic food products
| Example | Subject to 7%? |
|---|---|
| Bread, milk, cheese | Yes – 7% |
| Drinks (juices, water, alcohol) | No – 19% |
2. Books and printed media
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Printed books
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Newspapers and magazines
All of these are generally taxed at the reduced rate of 7%.
Since 2020, e-books are also taxed at 7%.
3. Cultural activities
| Service / Area | Rate |
|---|---|
| Theatre tickets, museums, cultural concerts | 7% |
| Commercial entertainment services | 19% |
4. Local public transport (ÖPNV)
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Tickets within a city
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Local and regional trains
These are often taxed at 7%.
5. Certain agricultural and animal products
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Eggs
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Unprocessed meat
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Seeds
These can fall under the 7% reduced rate.
Examples that are not covered by 7%
| Product / Service | Rate |
|---|---|
| Restaurant meals eaten on the premises | 19% |
| Mobile phones, cars | 19% |
| Clothing, electronics | 19% |
| Petrol and other fuels | 19% |
Important notes
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If you sell products or services subject to 7%, you must clearly show this rate on the invoice.
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An invoice may contain items taxed at 7% and 19% – they must be listed separately.
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In some borderline or mixed cases (e.g. combined cultural and commercial services), it is wise to consult a tax advisor to determine the correct rate.
Useful terms
| German term | Translation (Arabic) |
|---|---|
| Mehrwertsteuer (MwSt) | ضريبة القيمة المضافة |
| Ermäßigter Steuersatz | reduced tax rate (المعدل المخفض) |
| Regelsteuersatz | standard tax rate |
| Lebensmittel | foodstuffs / groceries |
| Buchhandel | book trade / book retail |
The editorial team of our website strives to provide accurate information based on thorough research and multiple sources. Nevertheless, errors may occur or some details may not be fully confirmed. Please treat the information in this article as an initial reference and always consult the competent authorities or professional advisors for binding and up-to-date guidance.
