Refunds of VAT

Value-added tax (abbreviated to Mwst or VAT) is also known by the specialist term turnover tax in Germany. It taxes the "added value" at each stage of production. The tax incurred at the various stages can be deducted as input tax. The VAT is thus ultimately imposed on the end user in full.

Two rates of VAT are applied to goods and services liable for VAT:

The general rate of 16 % (19% from 1 January 2007)
The reduced rate of 7 %.

VAT refunds to private individuals

Export sales by businesses are exempt from VAT, provided that the entrepreneur fulfils the statutory conditions. Under certain circumstances, this also applies to sales to travellers from outside the EU. It is not possible for the German tax authorities to refund VAT to travellers. The German VAT Act confers VAT exemption on the business, which can pass the tax exemption on to the purchaser in the form of a "price reduction".

Please ask the vendor whether and under which conditions it will refund the VAT.

The memorandum published by the German Federal Ministry of Finance in May 2004 contains exhaustive information on exports within the scope of non-commercial travel. You will find further information on how travellers from non-EU countries (third countries) can make tax (VAT) -free purchases in Germany on the Customs website.

VAT refunds by the Federal Central Tax Office (BZSt)

Foreign businesses can apply to the BZSt for a VAT refund. The application must be made on a form and within a certain period.

Click here for information on the conditions governing applications, application forms with notes on completion, memoranda and a list of frequently-asked questions (FAQs).

The notes on completion are available in various languages, but the form is currently only available in German. However, a form in the respective national language can also be used to make the application. Click here for addresses of foreign (national) authorities from which you can obtain forms in your own language.

back to the top