Why are grains tax-free

How high is the sales tax in Germany?

One of the most important questions for the self-employed: Do I have to add no, 7 or 19 percent VAT to my invoice? All sales are subject to sales tax, including all 19 percent at the full standard tax rate. However, certain sales are preferential and subject to a reduced tax rate of 7%. Few sales are completely exempt. Sales tax is also popularly known as value added tax (VAT).

Mixed services

Who provides services that are subject to different tax rates for Flat rate provides VAT after the main performance to calculate.

Tax rates for foreign purchases

Tax when importing goods from abroad: There is no sales tax when goods are imported from other EU countries. Due to the internal market, the goods can be brought across the border tax-free. The sales tax is then submitted via the UR attachment of the sales tax return to the responsible party Tax office, but there is one VAT identification number necessary.

When importing goods from Countries that do not belong to the EU, the foreign supplier must have the Invoice net, i.e. without foreign VAT. German value added tax is then levied on the net price as import sales tax. This import sales tax can be claimed as input tax as normal.

Deliveries to other EU countries:

Deliveries within the European Union are deemed to be VAT-free sales with input tax deduction. The service of a German company is subject to sales tax in the country in which it is provided.

In Germany, the following sales are exempt from sales tax:
  • International delivery
  • Intra-community deliveries (as taxable in other EU countries)
  • Sales from the activity as a doctor, dentist or alternative practitioner
  • Turnover from activity as a building society agent, insurance agent, insurance broker
  • Revenues from the sale and rental and leasing of land
  • Various transactions in money and capital transactions, e.g. B. Granting and mediation of Credit

In principle, sales tax is to be levied on all goods and services. It is an indirect tax that only the consumer pays. Entrepreneurs can deduct input tax from their sales tax liability. For them, sales tax and input tax are only a transitory, cost-neutral item. At certain intervals, the entrepreneur reports the difference between sales and input tax with the Advance VAT return the tax office. This results in payments to the tax office (more input tax than sales tax) or payments from the tax office (more sales tax than input tax).

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