Germany VAT – Big Changes in 2026

Germany implementing new VAT procedures next year.
Starting January 2026, companies who are operating in Germany will need to adapt to new VAT rules. The EU 2025 Tax Amendment Act led to this series of VAT changes. A draft of the new VAT legislation is currently being reviewed by the German government and tax authorities. EuroVAT is happy to discuss and answer all your questions regarding Germany’s tax reform package. Here’s a snapshot of what could affect your US business already next year:

How and when VAT should be reported
VAT will be considered officially delivered at the time when the transaction was made available electronically. This affects VAT rates but also exchange rates and your timeline for reporting. Germany together with EU is adjusting to a broader shift toward digital and real-time VAT.

VAT rate adjustments
For example, the VAT rate is lowered to 7% for meals provided in restaurants and catering services. This is particularly interesting if you are planning events in Germany. Generally, a US company organizing an event in Germany (where attendee fees are being charged) - needs to register for VAT in Germany. Once you receive your VAT catering costs they will most likely fall under the reduced 7% VAT rate. Some exceptions will apply, including beverages, which will continue to be taxed 19 % standard rate.

New import and export rules
US companies may benefit from a simplified VAT process - when importing and exporting goods with Germany. The new 2026 VAT rules are designed to simplify and streamline cross-border processing. Your company may use Centralized Customs Clearance procedures for imports and exports, please call 310-204-0805 or email vat@eurovat.com EuroVAT to learn more.

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