Germany is one of the largest economies in Europe. For those who do business or purchase goods in Germany, it is very important to understand the German consumption tax (VAT) system. This article will focus on the relevant content of German VAT payment and provide you with practical information.
1. Understanding German consumption tax (VAT).
Before we delve into the German VAT payment, we first need to understand what VAT is. VAT is the abbreviation of “Value Added Tax”. It is an indirect tax charged according to the value added of goods and services.
2. Overview of German VAT policy.
Germany’s VAT policy applies to almost all transactions of goods and services. According to German law, consumers need to pay the corresponding VAT when purchasing goods or using services. VAT rates are divided into different levels in Germany, generally 19% or 7%, depending on the type of goods or services.
3. German VAT payment methods.
Germany’s VAT payment can be made in a variety of ways. Here are several common payment methods:
Cash payment (Barzahlung): In some cases, you can pay the VAT amount directly with cash. This requires making sure that you have enough cash and that the merchant accepts cash payments.
Bank transfer (überweisung): This is a common electronic payment method that is very common in Germany. You can pay the VAT amount to the merchant or tax agency through a bank transfer.
Credit card payment (Kreditkartenzahlung): Using a credit card to pay is a convenient way. In Germany, most merchants accept payments from various major credit card brands, such as Visa, MasterCard, etc.
Debit card payment (EC-Kartenzahlung): Germany’s debit card system is also very popular, and you can use a debit card to pay the VAT amount directly. This method requires you to enter a personal identification number (PIN) when paying.
Fourth, German VAT invoice.
In Germany, merchants usually provide VAT invoices as transaction receipts. These invoices list in detail the information of the goods or services and the amount of VAT paid. As a consumer, you can keep these invoices for future reference or tax filing.
5. Tax Refund and German VAT.
For tourists from non-EU countries, they can apply for tax refund before leaving Germany. This means that they can get a partial or full refund of the VAT amount they paid. The specific procedures and requirements for tax refund can be obtained from the merchant when shopping by asking for relevant documents and forms. Normally, you need to show your shopping invoice, passport and fill out the tax refund application form. The merchant will handle the relevant procedures for you and refund the corresponding VAT amount.
In summary, Germany’s VAT policy applies to almost all transactions of goods and services, and consumers need to pay the corresponding VAT when purchasing goods or using services. Payment can be made in a variety of ways, including cash payment, bank transfer, credit card payment and debit card payment. Merchants usually provide VAT invoices as transaction vouchers, and for tourists from non-EU countries, they can apply for tax refunds to obtain a refund of the VAT amount.