Gross (Brutto), Net (Netto), VAT on cars in Germany

Gross (Brutto), Net (Netto), VAT on cars in Germany

In the context of cars in Germany, the terms “net” and “gross” mean the following:

Net (Netto): This is the price of the car excluding VAT (Value Added Tax). It represents the base price of the product or service, without including taxes or other additional charges.

Gross (Brutto): This is the price of the car including all taxes and fees, such as VAT and other mandatory payments. This is the price that the buyer sees and typically pays for the product or service.

For example, if a car costs €30,000 net, and the VAT rate in Germany is 19%, its gross price would be €35,700 (€30,000 + 19% VAT).

These terms are important for understanding the final cost of a product or service, as they highlight the difference between the base price and the price that includes all taxes and additional expenses.

VAT on cars in Germany is an important topic for those interested in purchasing a car in this country. In Germany, the VAT on cars is 19%. This tax is included in the price of the car shown on websites or in dealerships. It’s important to note that when foreigners purchase a car in Germany, there is a possibility of getting a VAT refund under certain conditions. This applies, for example, to individuals who are not EU residents, who can receive a VAT refund through special procedures, such as Tax Free Shopping.

If you need advice or assistance, we are always here to help.