The 2026 Guide to Sales Tax Returns in Germany

Filing a sales tax return in Germany can be complicated, but it doesn’t have to be. This article provides all the information you need about deadlines and rates for sales tax returns to make filing as straightforward as possible.

You can also hand over registration, admin and ongoing obligations: we take care of them in Company Formation & Admin.

What is Sales Tax in Germany?

With few exceptions, sales tax is levied on all products and services sold in Germany. It is one of the most important taxes in Germany, accounting for over 30% of tax revenue. What changes when you sell via Amazon or eBay is covered in the VAT guide for Amazon and eBay.

Sales tax is both a transaction tax and a consumer tax. It is collected by selling businesses and remitted to the tax authority for administrative reasons, but ultimately it is borne by customers. From a consumer perspective, it is often referred to as “value-added tax”. From a business perspective, it is often called “sales tax”.

How Does the German Sales Tax System Work?

Germany has three tax rates: 0%, 7%, and 19%. Unlike most countries where a single rate applies regardless of category or product type, Germany uses different rates for each category, depending on what it includes. This varies from country to country. So be sure to inquire with someone knowledgeable about this process. We recommend speaking with your accountant if you’re unsure how to determine the correct rate. The sales tax identification number can be requested free of charge from the tax authorities.

A general rule:

1. 19% — Standard tax rate under § 19 subsection 1 UStG. Everything that is not exempt from sales tax or subject to the reduced sales tax rate.
2. 7% — Reduced tax rate under § 19 (2) UStG. Most food items, books and magazines, live animals, accommodation, artwork, orthopedic aids, etc.
3. 0% — Goods and services exempt from sales tax under § 4 UStG. Exports, intra-community supplies, credit brokerage, insurance, etc.

Who Must File a Sales Tax Return?

The rule: Every business is subject to sales tax.

Every self-employed person and business that charges money for their services or deliveries must calculate sales tax on those amounts. An exception is provided under § 19 UStG: Small businesses are exempt from the obligation to pay sales tax. Since 2025, a small business is defined as a self-employed person with prior-year revenue of no more than 25,000 euros. Additionally, revenue in the current calendar year must not exceed 100,000 euros. This exemption can be claimed when applying for a tax number.

Exception: Small Businesses (no more than 25,000 euros in revenue in the previous year and 100,000 euros in the current year)

Deadlines for Filing Tax Returns

Most businesses must file a preliminary sales tax return with the tax authority either monthly or quarterly. The deadline for filing the preliminary sales tax return is always the tenth day of the month, which must be a business day. However, if this date falls on a Saturday, Sunday, or public holiday, the deadline is extended to the next business day.

However, there are significant differences in how frequently tax authorities expect you to file preliminary sales tax returns according to sales tax law. You also have the option to extend the filing deadline by requesting an extension of the assessment period. Combined with cash-basis accounting, a deadline extension is an effective tool to make the statutory payment deadline for sales tax more favorable for you as a business owner and to secure liquidity.

What Happens If You Don’t File Your Return on Time?

For late payment (including special advance payments), a penalty surcharge of 1% is imposed for each calendar month started (calculated from the expiration of the payment deadline without grace period); the amount is rounded down to the nearest amount divisible by 50 euros.

As long as advance payments have not been reported or assessed, no penalty surcharge is imposed. Therefore, penalty surcharges can be levied at the earliest from the day after late filing of the preliminary return. If the preliminary return is not filed, penalty surcharges can be incurred at the earliest on the day the tax authority’s assessment notice becomes effective. Assuming the advance payment is made after the payment deadline but still within the advance payment period extended due to a request for an extension of the individual filing deadline. In this case, penalty surcharges may be waived on objective grounds of fairness.

Support for Sales Tax Returns

You can get support for your monthly sales tax return from two sources. The first is accounting software that can calculate your monthly sales tax and transmit it to the tax authorities via ELSTER. This option requires some effort on your part. Below, we compare two accounting software providers:

The first company is FastBill, which has a rating of 4.1 stars on Google and prices starting from 8.99 € per month. The software offers everything from time tracking to tax advisor export to sales tax return filing.

The second company is Lexoffice and offers a starter package from 8.90 € per month. Both FastBill and Lexoffice offer an app for Android and iOS for scanning documents.

The second option is a tax advisor, who is more expensive than software but takes care of the entire process. Finding good tax advice in Germany can be challenging. This is exactly where we can help. Contact us here, and we’ll support you with our network of tax advisors.