What are the different VAT rates in Germany? Why do they exist? There is, however, a reduced tax rate of 7%, which applies to certain goods and services. The standard rate of VAT, or Mehrwertsteuer in German, is 19%. Let's get started! German VAT Rates for Freelancers In Germany, a freelancer is “a person who exercises one of the free professions independently, without functioning as a business, a partnership, or being employed with a full-time, part-time or remote contract.” This guide includes everything you, as a freelancer, need to know about VAT rates and obligations in Germany in a nutshell. While you might already know that, you might be unaware of the specific rules surrounding your product, which you should follow if you want to stay tax compliant. VAT, or Value Added Tax, is a consumption tax levied on the purchase of almost all goods and services in the EU.

Regardless of where you’re based, you have to deal with German VAT rules if you have clients as a freelancer or an independent contractor in Germany.

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