German VAT and e-invoicing for service businesses
The German standard VAT rate is 19%. Between German businesses, receiving electronic invoices has been required since 1 January 2025, and issuers are moving to structured e-invoices through transition periods running to the end of 2026, or 2027 for smaller issuers. Services to EU businesses abroad use the reverse charge.
Last reviewed 10 November 2026 by ReckonOS research (source check; not yet reviewed by an accountant).
Estimates based on the rules for Germany as of 10 November 2026. Check with your accountant. Each section below links to the official source it is based on, with the date we checked it. This page is research, not tax advice.
The standard rate
Germany’s standard VAT rate is 19% (code DE in the Commission’s table).
Sources: Your Europe: VAT rules and rates (opens in a new tab) (checked 5 November 2026).
E-invoices between German businesses
The Federal Ministry of Finance’s FAQ says domestic businesses must be able to receive e-invoices from 1 January 2025. Any issuer may still send other invoice formats until 31 December 2026; for issuers with prior-year turnover up to €800,000 that runs to the end of 2027.
We read these dates from the ministry’s FAQ as indexed by search, not from a direct copy of the page; check the page itself before relying on them.
Sources: German Federal Ministry of Finance: e-invoice FAQ (opens in a new tab) (checked 5 November 2026).
Clients elsewhere in the EU
A German business selling services to a VAT-registered business in another member state generally invoices without German VAT under the reverse charge in Article 196 of the VAT Directive.
Sources: European Commission: persons liable for VAT (opens in a new tab) (checked 5 November 2026).
What ReckonOS does with these rules
- Applies German VAT at 19% to domestic invoices and reverse charge to business clients elsewhere in the EU.
- Exports Peppol-ready UBL. It does not produce XRechnung or ZUGFeRD files.
Other countries
United States · United Kingdom · European Union · Belgium · Canada · Australia · Nigeria
Questions
What is the VAT rate in Germany?
The standard rate is 19%.
Does ReckonOS produce XRechnung or ZUGFeRD files?
No. It exports Peppol-ready UBL (Peppol BIS Billing 3.0). Check with your accountant whether that format suits your clients.
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