🎧 Listen to This Article
U.S. military personnel and their families in Germany are reaping significant savings following the nationwide rollout of the Value-Added Tax (VAT) App on January 1, 2025. In just the first month, total refunds surpassed those from the previous eight-month pilot program, highlighting the app’s effectiveness in maximizing tax relief on small purchases.
Significant Savings for U.S. Forces Households
According to U.S. Army Installation Management Command-Europe (IMCOM-E) officials, 2,950 households benefited from a combined refund of €230,000 in January alone. After deducting the cost of VAT forms, the average net savings per household exceeded $70.
The app streamlines VAT refunds for everyday micro-purchases, allowing users to consolidate small receipts and claim tax relief more efficiently.
“The increase in savings is not only tied to the jump in users, but also to greater awareness as our VAT offices educate customers on how to maximize benefits,” said Jeffrey Wertz, IMCOM-E Assistant Chief of Staff for Family, Morale, Welfare, and Recreation and liaison to NOVAT GmbH, the app’s developer and operator.
How the VAT App Works
Previously, many small purchases were not worth processing through the VAT refund system, as the standard €10 VAT form often outweighed the potential savings. Now, the Remonon App enables users to upload multiple small receipts, making tax savings on minor transactions far more accessible.
Key features of the program include:
- Users can upload receipts for small purchases individually, with a maximum receipt value of €240 (including VAT).
- Each household can consolidate receipts, up to a maximum of €2,499.99 per month (excluding VAT).
- Refund rates: Customers receive VAT reimbursements at 14% for items taxed at 19% and 4% for items taxed at 7%.
- At the start of each month, users upload a VAT form purchased at their local VAT office into the app.
- Purchases are made at full price, and receipts are uploaded to generate a monthly summary invoice for VAT reimbursement.
Program Restrictions and Eligible Purchases
While the VAT app simplifies tax refunds, existing VAT program restrictions and German customs regulations still apply. As a reminder, purchases cannot be made for ineligible individuals or for rationed items such as vehicle fuel, coffee, liquor, or cigarettes. However, wine, beer, cigars, vape products, and tobacco heat sticks are eligible for tax-free purchase under this program.
Additionally, liquor consumed on-site at restaurants or bars is classified as a gastronomic service, making it VAT-exempt when processed through the app.
Pro Tip: The app even covers paid parking when a VAT receipt is available. Look for the ‘Quittung’ button on parking machines to print a receipt that can be uploaded for reimbursement.
With the full rollout of the VAT App, U.S. military personnel and their families in Germany now have a more efficient and cost-effective way to maximize their VAT savings. The ability to consolidate small purchases into a single VAT refund form is a game-changer, making everyday savings more accessible than ever before.
For further details, clarification, contributions or any concerns regarding this article, please feel free to reach out to us at editorial@tax.news. We value your feedback and are committed to providing accurate and timely information. Please note that all inquiries will be handled in accordance with our privacy policy
