Section 4: Tax and input VAT

§ 12 Tax rates

(1) The VAT due for every taxable transaction is 19 percent of the taxable amount (§§ 10, 11, 25 paragraph 3 and § 25a paragraph 3 and 4).

(2) The VAT rate is reduced to 7 percent for the following transactions:

1. the supply, import and intra-Community acquisition of goods set out in Annex 2, with the exception of those goods mentioned in number 49 lit. f and numbers 53 and 54;

2. the leasing of goods set out in Annex 2, with the exception of those goods mentioned in number 49 lit. f and numbers 53 and 54;

3. the breeding and keeping of livestock, the growing of plants and attendance at performance tests for animals;

4. supplies that directly serve the keeping of sires, the promotion of livestock breeding, the artificial insemination of animals or performance and quality testing of livestock breeding and dairy farming;

5. (deleted)

6. supplies arising from activities performed as a dental technician, as well as supplies rendered by dentists referred to in § 4 number 14 lit. a sentence 2;

7.  

   1. the admission to theatres, concerts and museums, as well as performances comparable to theatre performances and concerts by performing artists;

   2. the licensing of films for approval and screening, as well as viewings of such films, provided that the films are labelled in accordance with § 6 paragraph 3 numbers 1 to 5 of the law on the Protection of Minors dated 23 July 2002 (BGBI I p. 2730, 2003 I p. 476) in the applicable version or were first screened prior to 1 January 1970;

   3. the granting, transfer and assertion of rights arising under the Copyright Act;

   4. circus performances, services arising from activities carried out by a travelling carnival worker as well as transactions directly related to the operating of zoological gardens;

8.  

   1. supplies provided by corporate bodies, whose single purpose is exclusively and directly communal, charitable or religious (§§ 51 to 68 of the Fiscal Code). This shall not apply to supplies carried out as part of a commercial business activity. With regard to supplies provided by the part of the corporate body that pursues economic activities within the framework of §§ 66 to 68 of the Fiscal Code (so-called “Zweckbetrieb”) sentence 1 shall only apply if the purpose of this “Zweckbetrieb” is not primarily the generation of additional revenues through the execution of transactions in direct competition with transactions entered into by other taxable persons that are subject to the standard VAT rate or if the corporate body with its “Zweckbetrieb”, within the meaning of §§ 66 to 68 of the Fiscal Code, pursues, with these supplies, a preferential tax treatment as laid down in the statute of the corporate body. Corporate bodies realise their tax-privileged statutory purposes themselves with their special-purpose enterprise (so-called “Zweckbetrieb”) described in §§ 66 to 68 of the Fiscal Code, if the recipients of the services or the persons involved in the provision of the services are covered by the tax-privileged purpose of the institution,

   2. supplies provided by non-incorporated associations of persons and associations of corporate bodies referred to in lit. a sentence 1 if, in the cases when the corporate bodies themselves carry out such supplies on a prorated basis, such supplies would be taxed in total at a reduced VAT rate in accordance with lit. a;

9. transactions directly related to the operation of public swimming pools, as well as therapeutic baths. The same shall apply to the provision of health resorts provided that a resort tax is paid as consideration;

10. the transportation of passengers by

    a)

    railway,

    b)

    trolleybus, automotive vehicle for approved regular services, taxi, cable cars and other mechanical ascent aids of all types and by ship for approved regular services as well as transportation by ferry

    aa)

    within a local community, or

    bb)

    where the transportation distance is not more than 50 kilometres.

11. the leasing of living space and bedrooms that a taxable person keeps ready for short-term accommodation of guests, as well as the short-term leasing of camping sites. Sentence 1 shall not apply to services that do not directly relate to leasing even when, by virtue of the payment for the leasing, these services are also compensated.

12. Importation of goods mentioned in number 49 lit. f and numbers 53 and 54 of Annex 2;

13. the supply and intra-Community acquisition of goods mentioned in number 53 of Annex 2, provided that the supplies are carried out by

    1. the creator of the goods or his successors in title or

    2. a taxable person who is not a reseller (§ 25a paragraph 1 number 1 sentence 2), and the goods

       aa)

       were imported into Community territory by the taxable person,

       bb)

       were supplied by the creator or his successors in title to the taxable person, or

       cc)

       have entitled the taxable person to a full input VAT deduction;

14. The provision of products mentioned in number 49 lit. a to e and number 50 of Annex 2 in electronic format, regardless of whether the product is also offered in physical form, with the exception of publications which completely or primarily consist of video-content or audible music. Also excluded are media products for which there are restrictions according to § 15 paragraph 1 to 3 and 6 of the Protection of Young Persons Act in the valid version, regarding media carriers who endanger minors (and information obligations regarding the information provided, as well as publications which are completely or primarily used for advertising purposes, including travel advertising. The provision of access to a database which contains e-books, newspapers and magazines or parts thereof benefit from the reduced VAT rate.

15. restaurant and boarding services with the exception of the serving of foods and beverages provided after 30 June 2020 and before 1 January 2024.

(3) The VAT rate is reduced to 0 percent for the following transactions:

1. the supply of solar modules to the operator of a photovoltaic system including the components essential for the operation of a photovoltaic system and the storage which serve for the storage of the electricity produced by the solar modules, when the photovoltaic system is installed on or near private buildings, apartments as well as public and other buildings which are used for welfare services. The preconditions of sentence 1 are regarded as fulfilled when the installed gross output of the photovoltaic systems according to the market master data register does not or will not exceed 30 kilowatts (peak);

2. the intra-Community acquisition of goods mentioned in number 1 which fulfil the preconditions mentioned in number 1;

3. the import of goods mentioned in number 1 which fulfil the preconditions mentioned in number 1;

4. the installation of photovoltaic systems as well as the storage which serve as storage for the electricity produced by the solar modules, when the supply of the installed components fulfils the preconditions mentioned in number 1.