The VAT rate in Germany is 19% for regular goods and 7% for some goods like food or books. It is included in the retail price. As a traveler residing in a non-EU country, you are entitled to claim a VAT refund. Less charges, you can receive up to 14.5%. The qualifications for tax-free shopping are a minimum purchase of € 25 and the export of the goods within three months.
How to get your refund?
For checked baggage: Check in and have your baggage labeled. After that, you can take your suitcases to the customs office. Customs will check your merchandise, stamp your receipts and handle your baggage. Last step will be the Global Blue Office, where you need to show your receipts and will finally get your refund.
For carry-on baggage: Check in and pass the security and passport control. Proceed to the customs office to get your merchandise checked and your receipts stamped. Last step will be again the Global Blue Office. You can also get your refund at the ReiseBank.