Germany doesn't protect its production with tariffs any more than, say, North Carolina does. There are no German tariffs, because Germany is part of European Union, which sets up common, shared tariff regime, and tariff-free goods movement within EU. Germany can lobby within EU to propose tariffs that it considers beneficial to it, just like North Carolina can in US, but if other EU members don't like it enough, it will not go through.
Second, how does VAT protect domestic production? VAT applies to both imported and domestically manufactured goods equally. VAT is really ultimately just a sales tax, just collected in a somewhat different way, and you pay the same sales tax regardless of where the good was produced.
Second, how does VAT protect domestic production? VAT applies to both imported and domestically manufactured goods equally. VAT is really ultimately just a sales tax, just collected in a somewhat different way, and you pay the same sales tax regardless of where the good was produced.