VAT Guide for Agencies in Germany
Agencies operating in Germany charge the standard VAT rate of 19% (reduced rates: 7%). Registration becomes mandatory at €22,000 annual turnover, returns are filed monthly with annual return, and cross-border B2B services are generally reverse-charged to the customer.
| Standard rate | 19% |
| Reduced rates | 7% |
| Registration threshold | €22,000 annual turnover |
| Filing frequency | Monthly with annual return |
| Currency | EUR |
| In force since | 01 Jan 2007 |
| Last verified | 01 Sept 2026 |
Official source
Bundesministerium der Finanzen (BMF)Figure verified on 01 Sept 2026. Every rate on this page is traceable to the authority above.
Worked examples
Domestic sale in Germany
You invoice a customer based in Germany for €1,000.00 of agencies work.
Add 19% VAT: €190.00. Total invoiced €1,190.00, declared in your monthly with annual return return.
Cross-border B2B inside the EU
A VAT-registered business in another member state buys the same €1,000.00 service and supplies a valid VAT number.
Invoice at 0% under the reverse charge, state "Reverse charge — Article 196 VAT Directive", and report the sale on your EC Sales List.
Sales to consumers in another EU country
You sell €12,000.00 per year to private customers in other member states.
Past the €10,000 distance-selling threshold you must apply the destination rate and declare the sales through the One-Stop Shop.
Late filing exposure
Your monthly with annual return return is filed after the deadline.
1% per month late payment penalty, up to 10% of unpaid tax. Estimation penalties for non-filing.
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- Confirm whether you are above €22,000 annual turnover
- Register with Bundesministerium der Finanzen (BMF) before your first taxable supply
- Apply 19% on domestic sales and the reverse charge on EU B2B
- Validate every EU customer VAT number in VIES and keep the proof
- File monthly with annual return and archive invoices for the statutory period
- Kleinunternehmerregelung (small business exemption)
- Reverse charge for construction services
FAQ — Agencies in Germany
When must agencies register for VAT in Germany?
Registration is required at €22,000 annual turnover. Voluntary registration below that level is possible and usually worthwhile when you buy a lot of taxable inputs, because it lets you reclaim input VAT.
Which VAT rate applies to agencies in Germany?
The standard rate is 19%, with reduced rates of 7% for specific categories. Applied since 2007-01-01, last verified against Bundesministerium der Finanzen (BMF) on 2026-09-01.
How often do I file VAT returns in Germany?
Monthly with annual return. 1% per month late payment penalty, up to 10% of unpaid tax. Estimation penalties for non-filing.
What must appear on an invoice in Germany?
Must include sequential invoice number, date, full names and addresses, VAT ID, description, quantity, net amount, VAT rate, and total. Small invoices under €250 have simplified requirements.
Do I charge VAT to business clients in other EU countries?
No. For B2B services within the EU the reverse charge applies: invoice at 0%, quote both VAT numbers, add the reverse-charge mention and report the transaction on your recapitulative statement. Always validate the customer's VAT number in VIES first.
What is specific to Germany for my sector?
Kleinunternehmerregelung (small business exemption) · Reverse charge for construction services · Special import VAT deferment scheme
Disclaimer : This tool is provided for informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor for decisions regarding your tax situation.Source : EU VAT Directive 2006/112/EC
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