Germany VAT Refund

In Germany there are two types of vat rate i.e. Standard rate (19%) and Reduced rate (7%). Both the rate is applicable to the following sectors

♦   Trade fair expenses
♦   Conference costs
♦   Accommodation and travel expenses
♦   Expenses incurred while visiting Germany
♦   Service costs
♦   Training courses in Germany
♦   Outsourced services

Germany VAT Rate

Germany will raise its rate of VAT (value added tax) from 16% to 19% with effect from 1 January 2007. VAT is imposed on assets and services in Germany as well as on imports into Germany. Overseas exports are exempted from VAT in Germany. There are special conditions for small businesses.

The raise is expected to hoist £13 billion for the government and will result in reducing Germany's budget deficit. The VAT increase on most goods and services places Germany now nearer to the EU’s average VAT rate