Which value-added tax rates apply to which goods and services?
April 3, 2024 | 40,00 EUR | answered by Quentin Reuter
Dear Tax Advisor,
I am Maria Rothwiller and I have a question regarding value added tax. I operate an online retail company that offers various goods and services. I have heard that there are different VAT rates for different goods and services, but I am unsure which rates apply to my products.
Currently, I offer clothing, electronic devices, and digital services such as online courses. I am unsure whether these products are subject to the standard VAT rate of 19% or the reduced rate of 7%. Additionally, I am wondering if there are any special tax rates for specific products that I need to consider.
My concern is that I might apply the wrong VAT rates and encounter tax issues as a result. Therefore, it is very important for me to have clarity on which rates apply to which goods and services. I want to ensure that my accounting and invoicing are correct in order to avoid any tax errors.
Could you please provide me with an overview of the VAT rates for clothing, electronic devices, and digital services? Are there any special exceptions or regulations that I need to be aware of? I would greatly appreciate your assistance with this matter.
Thank you in advance for your support.
Best regards,
Maria Rothwiller
Dear Mrs. Rothwiller,
Thank you for your question regarding value-added tax. As a VAT consultant, I am happy to advise you on the different VAT rates for your products in your online trading company.
First of all, it is important to know that there are indeed different VAT rates for different goods and services. Currently in Germany, there are two different VAT rates: the standard rate of 19% and the reduced rate of 7%. The standard rate of 19% applies to most goods and services, while the reduced rate of 7% applies to certain products such as food, books, and some other goods.
Regarding your products, namely clothing, electronic devices, and digital services such as online courses, I would like to provide you with the applicable VAT rates:
1. Clothing: In Germany, clothing is subject to the standard VAT rate of 19%. This means that you must apply a tax rate of 19% on the sale of clothing.
2. Electronic devices: Electronic devices also fall under the standard VAT rate of 19%. Therefore, the tax rate of 19% applies to the sale of electronic devices as well.
3. Digital services such as online courses: Digital services like online courses are also taxed at the standard VAT rate of 19% in Germany.
There are no special exceptions or specific regulations for the products you mentioned. Therefore, you can apply the standard VAT rate of 19% to all your products.
It is important that you correctly apply the respective VAT rates in the invoicing and accounting of your products to avoid tax issues. If you have any further questions or need assistance, I am here to help.
I hope this information has been helpful to you and I am available for any further questions.
Sincerely,
Quentin Reuter, Tax Consultant
