Value-Added Tax & Other Taxes

The government adds a 19% value-added tax to everything you buy, including insurance policies, new cars and medicines. Food is the one exception and is taxed at 7%. The figures may seem high, but it’s still one of the lowest value-added taxes in Europe. The country also isn’t unfamiliar with sin taxes and a popular fundraiser for politicians is increasing the tax on cigarettes. Currently, smokers pay about 14 cents in tax per cigarette, more than half the €4.50 price of a 20 pack. Drivers are tapped to fund the Autobahn. Gas costs about €1.35 per litre, with about 82 cents of that going to the government.

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