VAT Calculator Germany – How to Calculate VAT (Updated 2025)

Understanding VAT is essential for any online seller doing business in Germany. Whether you sell via Amazon FBA, your own website, or another marketplace, knowing how to calculate VAT helps you stay compliant and price your products correctly. In this article, we explain how the German VAT system works, how to calculate VAT in Germany from net and gross prices, and how to simplify this process with an online VAT calculator.

What Is VAT and How Does It Work in Germany?

VAT (Value Added Tax) is a consumption tax charged on the sale of goods and services. In Germany, as in other EU countries, VAT is added to almost every B2C transaction. If you’re VAT-registered, you must charge VAT on your sales and can deduct the VAT paid on your business expenses.

As of June 2025, the standard VAT rate in Germany is 19%. A reduced rate of 7% applies to specific goods and services such as:

• Basic food items

• Books and newspapers

• Public transport

• Certain healthcare and cultural services

Businesses act as intermediaries: they collect VAT from their customers and remit it to the German tax office (Finanzamt), after deducting the input VAT they’ve paid on their own purchases.

For more information on VAT rates in Europe check here.

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How to Calculate VAT in Germany

To correctly apply VAT, you need to understand the difference between net and gross prices:

• Net price: Price before VAT

• Gross price: Final price including VAT

Here are the formulas for both adding and removing VAT:

➕ Add VAT to a net price

➖ Remove VAT from a gross price

💡 Calculate the VAT amount from a gross price

These formulas allow you to quickly switch between net and gross values depending on how your prices are displayed or invoiced.

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Example: Calculating VAT in Practice

Let’s say you’re a VAT-registered seller in Germany and you list a product with a gross price of €119.

• First, calculate the net price:
  €119 / 1.19 = €100

• Then, calculate the VAT amount:
  €119 - €100 = €19

This means:

• €100 is your actual revenue (net price)

• €19 is VAT that you collect and remit to the tax office

If you’re purchasing this item as a business expense and you’re VAT-registered, you can claim the €19 VAT back in your VAT return.

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Why VAT Calculations Matter for Online Sellers

Whether you sell through Amazon FBA or your own online store, understanding how to calculate VAT is crucial for:

• Setting accurate product prices

• Issuing compliant invoices

• Submitting correct VAT returns

• Avoiding penalties for incorrect reporting

If you store inventory in multiple EU countries (e.g. through Amazon’s Pan-European FBA program), you may also have VAT obligations in those countries. Proper calculations help you avoid overpaying or undercharging VAT.

🔗 Learn more: VAT in Germany for Amazon sellers

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Use a VAT Calculator to Save Time

Manually calculating VAT is fine for a few items, but not practical when dealing with multiple SKUs, changing rates, or invoices across countries. That’s why most online sellers use automated VAT calculators.

With a reliable online VAT calculator, you can:

• Enter either the net or gross amount

• Choose the correct VAT rate (19% or 7%)

• Instantly get the missing value and the VAT amount

🔗 VAT calculator tool

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Conclusion

Calculating VAT in Germany is straightforward once you understand the formulas and know the current rates. For online sellers, it’s not just about tax compliance—it’s also about clear pricing and accurate accounting.

Using a VAT calculator or professional VAT software like Hellotax helps you avoid errors, save time, and focus on growing your business. Whether you’re just starting to sell in Germany or expanding across the EU, accurate VAT calculations are a key part of your success.

💬 Need help managing VAT across Germany or other EU countries?
Talk to a VAT expert at Hellotax and simplify your compliance process.