Understanding Tax Rates

In Germany, there are different VAT rates. dVersum supports all common tax rates and even allows different tax rates per invoice line item.

The Three Tax Rates

Standard Rate: 19%

The standard tax rate for most goods and services in Germany.

Applies to:

• All ordinary business transactions
• Services
• Most goods
• Software and digital products

Reduced Rate: 7%

The reduced tax rate applies to certain essential goods.

Applies to:

• Food (except restaurant services)
• Books and magazines
• Cultural events
• Public transport
• Accommodation services
• Works of art

Zero Rate: 0%

Tax-exempt transactions or reverse charge cases.

Applies to:

• Export outside the EU
• Intra-community supplies (EU B2B with VAT ID)
• Reverse Charge (§13b UStG)
• Tax-exempt services per §4 UStG

Selecting Tax Rate Per Line Item

In dVersum, you can set an individual tax rate for each invoice line item:

1. Open the invoice
2. Click on a line item
3. Select the appropriate rate in the "Tax Rate" field

The tax breakdown at the end of the invoice automatically shows all used tax rates grouped together.

Example: Invoice with Different Tax Rates

Documenting Tax Exemptions

For tax-exempt transactions, you must state the reason:

Small Business Regulation (Kleinunternehmerregelung, §19 UStG)

If you use the small business regulation:

• Select 0% tax rate
• Add note: "No VAT charged pursuant to §19 UStG." (Gemass §19 UStG wird keine Umsatzsteuer berechnet.)

Reverse Charge (§13b UStG)

For EU B2B transactions with reverse charge:

• Select 0% tax rate
• Note appears automatically: "Reverse charge - VAT liability transfers to the recipient" (Steuerschuldnerschaft des Leistungsempfangers)

Tax-Exempt Services (§4 UStG)

For certain tax-exempt services:

• Select 0% tax rate
• State the reason in the "Tax Exemption Reason" field

dVersum Tip

The default tax rate for new line items is 19%. If you frequently work with a different tax rate, you can mark a client as "Reverse Charge" - then all invoices to this client will automatically be created with 0%.