A tax that is charged on the sale of goods and services. It is paid by the company to the tax office, but ultimately paid by the end consumer, and is often known as value-added tax.
example
Alle Preise sind inklusive der gesetzlichen Umsatzsteuer von 19 Prozent.
All prices include the statutory VAT of 19 percent.
Usage tips
Word composition
The word is made up of 'der Umsatz' (a company's total revenue) and 'die Steuer' (the tax). So it is literally a tax on revenue.
EXAMPLE
Jedes Unternehmen muss auf seinen Umsatz eine Steuer zahlen.
Every company has to pay a tax on its revenue.
Abbreviation
In official documents, on invoices, and in specialist language, 'Umsatzsteuer' (VAT/sales tax) is often abbreviated as 'USt.'.
EXAMPLE
Bitte überweisen Sie den Betrag zzgl. 19 % USt.
Please transfer the amount plus 19% VAT.
Typical collocations
Companies must 'Umsatzsteuer abführen' (pay/remit VAT) or 'an das Finanzamt zahlen' (pay it to the tax office). On invoices, the tax is 'ausgewiesen' (shown separately). Prices are often 'inklusive' (incl.) or 'zuzüglich' (zzgl.; plus) VAT.
EXAMPLE
Als Selbstständiger musst du regelmäßig die Umsatzsteuer an das Finanzamt abführen.
As a freelancer, you have to regularly remit VAT to the tax office.
Compare with
near_synonym · confusable
Umsatzsteuer vs Mehrwert
added value / surplus value
'der Mehrwert' and 'die Umsatzsteuer' can both occur in the area of money and sales, but they are not always used in the same way. 'die Umsatzsteuer' is the precise tax term for the tax on goods and services. 'der Mehrwert' usually means added value, meaning something that makes a product or idea more valuable. There is a risk of confusion because 'Mehrwert' can also be used as a short form of 'Mehrwertsteuer' (value-added tax). When talking about invoices and taxes, 'Umsatzsteuer' is more precise. When talking about benefits or advantages, 'Mehrwert' fits better.
Umsatzsteuer
Auf der Rechnung steht die Umsatzsteuer getrennt vom Nettopreis.
The invoice lists the VAT separately from the net price.
Mehrwert
Der neue Kurs bietet den Teilnehmern einen echten Mehrwert, weil sie sofort praktisch üben können.
The new course offers participants real added value because they can practice hands-on right away.