Mehrwertsteuer, usually abbreviated to MwSt, is the German for "VAT" (as known in the UK) or "sales tax" (as known in the USA).
The typical tax rate is 16%. This is halved to 8% for certain goods such as newspapers, books, and such like.
From 01.Jan.2007 the rate will be raised to 19%. See the related chat forum topic: German VAT to be increased to 19% from 01.Jan.2007
Mehrwertsteuer and Umsatzsteuer (also known as UmSt or "turnover tax") are, to all intents and purposes, the same thing. The word Umsatzsteuer tends to be used in association with business to business transations whereas Mehrwertsteuer is used more for business to consumer.
External links: