How to Fill Out and Use US Forces Germany VAT Forms (NF-1 and NF-2)

If you are stationed in Germany with the U.S. forces, you use VAT forms by registering at your installation’s Tax Relief Office and then presenting either an NF-1 or an NF-2 at the point of purchase to buy at the tax-free (net) price. The NF-1 covers everyday purchases under €2,500 and you pay the vendor directly; the NF-2 covers anything at €2,500 or more and the TRO pays the vendor on your behalf. Germany’s standard VAT is 19 percent on most goods and 7 percent on food, books, and transportation, so the forms pay for themselves quickly.¹

Who Can Use the Forms

Three groups qualify: active-duty military (the Force), DoD civilians stationed in Germany (the Civilian Component), and dependents of either group. You need a valid U.S. military ID and must be in Germany solely because of official duties.² Once the sponsor registers, household members can be added to the account and make purchases on their own.

You lose the privilege the moment you get classified as “ordinarily resident” in Germany. Two moves put you there fast: taking a German work permit, which is treated almost as a declaration of German residency,³ and registering your residence at a German town hall, which can generate a German tax ID and broadcast-fee demands.⁴ A German spouse counts as a dependent but is considered ordinarily resident for German tax purposes and cannot personally use the forms. Contractors and anyone who held a German work permit during a prior stay are generally out, unless they spent at least a year back in the United States between assignments.

Which Form You Need

The threshold is €2,500 (excluding tax) per transaction, and picking the wrong form is one of the most common violations.

Use an NF-1 for any single purchase under €2,500. It is a multi-copy carbon form. You fill it out, hand it to the merchant, and pay the vendor directly by cash, card, or bank transfer at the net price.¹

Use an NF-2 for anything €2,500 or more. You cannot pay the vendor yourself on an NF-2. You need a written cost estimate from the vendor, and the TRO issues the form and handles payment.¹ Only one NF-2 can be outstanding per household at a time, and it stays valid for 90 days.

You cannot split a purchase across two NF-1 forms to duck the threshold. A €1,500 bed and a €2,000 couch bought at the same store on the same day are one €3,500 transaction and require an NF-2.⁵

Setting Up Your Account and Getting Forms

Before your first purchase, the sponsor registers at a Tax Relief Office. Every major U.S. installation in Germany runs one, including Ramstein, Grafenwöhr, Stuttgart, and Wiesbaden. Bring your military ID to open the account, then add household members so they can shop independently.⁶

You can pick up NF-1 forms at the TRO window. Some installations also accept email orders from a .mil address on a CAC-enabled computer; those typically reach your APO mailbox in about five to seven days. Include your full name, the last four of your DoD ID, the number of forms you want, your APO address, and a contact number.⁶

Prices vary by installation. USAG Bavaria charges $10 per NF-1 and $100 per NF-2.⁶ An earlier Army-wide reference listed $5 and $65.⁵ Ask your local TRO for current pricing. The NF-2 fee looks steep until you run the 19 percent against a €5,000 kitchen.

Filling Out and Using an NF-1

Fill the NF-1 out before you get to the register. Doing it at the counter slows the line and invites errors that make the merchant refuse the form.

Use the vendor’s exact legal business name and address. The name over the door isn’t always the name on their tax registration, so confirm before you go. Describe the goods generically in the designated area (household electronics, clothing, auto repair parts). Add your full name, ID number, and the date. All copies must be legible because they are carbon duplicates.⁷

At checkout, hand the completed form to the merchant. The vendor verifies your information, signs and stamps it, and charges you the net price. Then the copies split three ways:

White copy (Page 1) goes back to the TRO so you can buy a replacement form.
Pink copy (Page 2) stays with your receipt as your personal proof of purchase.
Yellow copy and remaining pages stay with the vendor, who submits them to the German finance office.⁷

Return the white copy promptly. The TRO will not issue new forms while you have unreturned ones outstanding, and chronic late returns can lead to account suspension. Multiple purchases from the same vendor in the same calendar month can go on a single form if you finish the transaction before the month ends.⁵

Running an NF-2 for Purchases Over €2,500

The sequence matters. Get it out of order and the TRO will refuse to issue the form.

Get a written cost estimate first. Ask the vendor for a Kostenvoranschlag or Angebot showing the price with and without VAT. It must be addressed to your installation’s VAT office (for example, “86 FSS” or “CMWRF”) as the purchaser, with your name and address underneath. An estimate showing only your name is not eligible.⁸
Bring the estimate to the TRO before you order or pay anything. The TRO cannot issue an NF-2 based on a final invoice, order confirmation, or bill of sale.⁸
Arrange payment through the TRO. You cannot pay the vendor directly for any portion of an NF-2 transaction. Paying by cash or check means a certified (cashier’s) check from your bank or credit union made payable jointly to your TRO and the vendor, such as “86 FSS and [Vendor Name].” If you are financing, bring a letter of intent from your lender showing the amount in both dollars and euros.⁷
The TRO issues the form, an authorized signer co-signs the check, and the vendor is paid at the net price. Return the white copy to the TRO once the purchase is complete.¹

Plan on at least two TRO visits and give yourself lead time if the vendor has to order materials. Vehicles, furniture sets, and larger home-improvement contracts almost always land here.

Online Purchases

Online shopping works as a reimbursement rather than an upfront discount. For Amazon.de, you pay the full VAT-included price, then mail the completed VAT form with the original invoice to:

Amazon CS Berlin GmbH
Zahlungsabteilung
Karl-Liebknecht-Straße 5
10178 Berlin⁹

Amazon refunds the VAT to your original payment method and mails your form copies back. This works only for items sold directly by Amazon.de; for third-party marketplace sellers you have to contact the seller yourself. The order must ship to an APO address, not a German street address.⁹ Other online retailers vary, so ask before you order. If an online purchase hits the €2,500 threshold, the NF-2 rules still apply, which means the estimate and TRO-processed payment have to happen before the order is placed.

What You Cannot Buy With a VAT Form

Some exclusions catch people off guard.

Real estate: buying, renting, selling, or adding to real property, including apartments, houses, garages, carports, sheds, and even the legal fees tied to a real-estate transaction.¹
Utilities and telecom: electricity, gas, water, and phone contracts. Off-post personnel handle utility VAT through a separate program, the Utility Tax Avoidance Program.¹⁰
Contracts longer than 30 days: leases, subscription services, and similar agreements.¹
Kitchens over €15,000: kitchens are eligible, but tax relief is capped at €15,000 (excluding tax).¹
Business, resale, or gifts to non-eligible people: forms cannot be used to buy stock for a home business, items for resale, or anything for someone who does not qualify, including gifts to non-eligible friends or neighbors.¹¹

Vehicle purchases and repairs do qualify and follow the normal NF-1 or NF-2 process based on price.¹² A car will nearly always land in NF-2 territory.

What Happens If You Break the Rules

Your account is tracked across installations in a centralized database called iTRAAC, so a violation at one base follows you everywhere in Germany.

First violation: notification letter from the TRO, temporary account suspension, and a required briefing and signed acknowledgment.
Second violation: the same process, but the notification comes from your garrison or base commander.
Third violation within three years, or a single serious violation: account barred for at least 12 months, with the garrison commander setting the length based on severity.¹

German tax authorities can also pursue tax-evasion charges independently. If they later deny a tax-relief transaction, you are personally on the hook for the unpaid VAT plus any fines, and suspected violations are referred to law enforcement.¹¹

Mistakes That Trip People Up Most Often

A handful of errors account for most violations. Splitting a purchase across two NF-1 forms to stay under €2,500 is the big one, and both TROs and German auditors look for the pattern.¹³ Paying a vendor directly on an NF-2 is another, since a lot of people do not realize the TRO has to handle those payments.¹

Placing the order or signing a contract before the NF-2 is issued kills the transaction. The TRO will not issue a form after the fact based on invoices or order confirmations.⁸ And letting white copies sit is the slow route to a suspension. Treat the white copy like a library book: return it and you can check out another.

1
Department of Defense. Army in Europe Regulation 215-6
2
Gov.uk. Supplementary Agreement to the NATO-SOFA Germany
3
Department of Defense. Bilateral Agreements, Notes Verbale, Consultative FAQs
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U.S. Army Garrison Stuttgart. Spousal Employment in Germany
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The United States Army. Save Money with VAT Forms
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Grafenwoehr Army MWR. Value Added Tax (VAT)
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86th Force Support Squadron. AE Form 215 – VAT Form Instruction
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Grafenwoehr Army MWR. Value-Added Tax (VAT) Relief Program In Germany
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Amazon.de. About Military Addresses VAT Refunds
10
Ramstein Air Base. Utility Tax Avoidance Program
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Ramstein Air Base. Observing Tax Relief Rules Helps Buyers Avoid Potential Problems
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The United States Army. Avoid Sticker Shock When Stationed in Germany: VAT Form Dos and Donts
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StuttgartCitizen.com. Avoid These Common VAT Prohibited Practices