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VAT is Value Added Tax, basically 19% sales tax on all goods, reflected in the displayed price on all general merchandise items (food excluded). US service members stationed in Germany under the US-German status of forces agreement are allowed to purchase forms for $4/ea which, when presented to a German shopkeeper, exempt that purchase from German VAT. The forms are three pages and require various stamps are are generally a pain in the ass so its rare you see them used for anything but larger purchases in excess of 100 euro.
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