Taxi and VAT in Germany

Taxi VAT - this is how it is calculated

• The taxi VAT in Germany varies depending on whether you are taking a short or a longer journey.
• When driving in town or Up to 50 km, 7 percent VAT is charged on the fare.
• For trips of 50 km or more, you pay the regular VAT rate of 19 percent in Germany.
• If the customer is transported in town and later starts the return journey with the same taxi company, these journeys must be billed separately. As a result, only 7 percent VAT is charged on both trips.
• If the taxi ride is started for professional reasons, this can be deducted from tax. the ride costs are fully deductible on the annual income tax return.


Dropping off taxi rides - you should keep that in mind

Travel expenses incurred in connection with the exercise of the profession, employees, ...

• As a self-employed person or freelancer in Germany, you can include the VAT of 7 resp. 19 percent of your payable
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  value added tax pull off.

This applies to passenger transport in Germany

• Taxi companies in Germany often also offer rental cars. This means that you are more free on the road. A uniform VAT rate of 19 percent applies here.
• You can also deduct this VAT in your own VAT return.
• If you are employed in Germany, then professionally paid taxi and rental car bills can also be paid out.
• The easiest way is to talk through the conditions in advance, for example whether the billing address should then correspond to the company address. This also applies to hotel accommodation, for example.
• Then submit the invoice to accounting and have the money paid out.