Overview

• Germany's tax revenues in March 2025 increased by 11.1% compared to the previous year, reaching €86 billion.
• Value-added tax (VAT) collections rose sharply by 16%, with import VAT up nearly 19%, despite broader economic stagnation.
• The finance ministry has not identified a clear cause for the VAT spike, with experts suggesting recent fraud busts in North Rhine-Westphalia may have temporarily boosted collections.
• The Deutsche Steuer-Gewerkschaft (DSTG) has renewed calls for accelerated digitalization of the tax system to combat evasion and stabilize revenues.
• This unexpected revenue surge contrasts with weak GDP growth and high unemployment, complicating federal and state budget planning.