Guide to Import VAT in Germany for Foreign Companies

What Is Import VAT in Germany (Einfuhrumsatzsteuer)?

Import VAT in Germany, or Einfuhrumsatzsteuer, is a consumption tax charged when goods from non-EU countries enter German territory and are released into free circulation. German customs (Zoll) collects it at the border alongside customs duty, but it is legally distinct from duty. The declared importer in the customs declaration is liable for the tax.

The taxable event sits in § 1 Abs. 1 Nr. 4 UStG, which names “die Einfuhr von Gegenständen im Inland” as a separate taxable transaction under the Umsatzsteuergesetz (UStG), the German VAT Act. It stands apart from domestic supplies and intra-Community acquisitions. You owe it whether you import for resale, production, or internal use.

When Does Import VAT Apply in Germany?

Import VAT applies when non-EU goods enter German free circulation, even when no customs duty is due. It does not apply to goods arriving from another EU member state. Those intra-EU movements trigger intra-Community acquisition VAT (innergemeinschaftlicher Erwerb), self-assessed on your VAT return, not import VAT at the border.

The intra-EU boundary matters most. Source: § 1 Abs. 1 Nr. 4 UStG. Non-EU origin means import VAT. EU origin means acquisition VAT, which a registered business usually self-assesses and deducts in the same return.

What Happens to Import VAT Under Customs Warehousing and Special Procedures?

Import VAT is suspended while goods sit under a customs suspensive procedure and becomes due only when the goods are released into free circulation in Germany. Bonded warehousing, external transit, and inward processing all defer the charge. Goods re-exported straight from the procedure never incur German import VAT at all.

Each procedure needs customs authorization, and the goods stay under customs control throughout. The release declaration into free circulation is the chargeable event, which is when the EUSt and any duty crystallize. This matters for foreign companies holding stock in Germany before onward sale, because warehousing shifts the VAT trigger to the moment goods actually leave customs control. The framework sits in the EU Union Customs Code (UCC), Regulation (EU) No 952/2013.

How Is Import VAT Calculated in Germany?

The VAT base equals the customs value plus any import duties and excise taxes plus transport, handling, and insurance costs to the first destination in the EU, under § 11 UStG. You then apply 19% or 7% to that base. The customs value itself follows the UCC transaction value method.

Base figures from § 11 UStG. The importer pays €400 duty plus €2,166 import VAT at clearance. The customs value is set under UCC Articles 70 to 72: Article 71 adds costs like royalties, commissions, and transport to EU entry, while Article 72 excludes post-entry EU transport and assembly.

What Are the Import VAT Rates in Germany?

Import VAT mirrors the domestic rate structure: 19% standard and 7% reduced, under § 12 UStG. There are no import-specific rates. You map the imported good to whatever domestic VAT category it falls into, so a reduced-rate domestic product keeps the 7% rate on import.

Germany temporarily cut rates to 16% and 5% for supplies between 1 July and 31 December 2020 under § 28 UStG, then reverted to 19% and 7% from 1 January 2021. Those standing rates still apply in 2026. The reduced-rate list in Anlage 2 UStG enumerates goods by customs tariff heading.

Which Imports Are Exempt From German Import VAT?

Specific imports are exempt under § 5 UStG (Steuerbefreiungen bei der Einfuhr) and the Einfuhrumsatzsteuer-Befreiungsverordnung (EUStBV), the import VAT exemption ordinance. Exemption is narrow and condition-bound. Most commercial stock is not exempt, so treat exemption as the exception, not a planning tool.

Sources: § 5 UStG and the EUStBV ordinance. Confirm any claimed exemption against the statute before relying on it, because the conditions are strict and documentation-heavy.

How Does the €150 Low-Value Consignment Rule Work?

The €150 rule changed in 2026. Until 30 June 2026, consignments with intrinsic value up to €150 were exempt from customs duty. From 1 July 2026, Zoll confirms that exemption is abolished and replaced by a flat €3 duty per product category. Import VAT always applied from the first euro.

The common misconception is that small parcels are VAT-free. They are not. The old €22 VAT exemption disappeared EU-wide on 1 July 2021, and a further €2 Union Handling Fee per category applies to distance-sale shipments from 1 November 2026, per Zoll.

What Is IOSS and Should Non-EU Sellers Use It?

IOSS is the Import One-Stop Shop. It lets sellers charge VAT at checkout on business-to-consumer (B2C) consignments up to €150 intrinsic value and remit it through one monthly return, so goods clear customs without import VAT at the border. It was created by Council Directive (EU) 2017/2455 and took effect on 1 July 2021.

Non-EU sellers generally need an EU-established intermediary to register for IOSS. IOSS covers imports up to €150, while the One-Stop Shop (OSS) covers intra-EU distance sales. Online marketplaces are often treated as the deemed supplier and carry the IOSS obligation for sales made through them. A missing or invalid IOSS number means import VAT gets collected at the border, often with courier handling fees passed to the buyer.

Can You Defer Import VAT in Germany?

Yes, Germany offers two cash-flow mechanisms. A customs deferment account (Aufschubkonto) consolidates duty and import VAT into a monthly payment. Separately, under § 21 Abs. 3a UStG, import VAT is due by the 26th of the second month following import, which aligns payment with the VAT return cycle. Germany has no Dutch-style or UK-style postponed VAT accounting.

Sources: § 21 UStG, Abs. 3 and 3a. The deferred due date achieves a similar effect to postponed VAT accounting without a reverse charge, because many importers reclaim the VAT on the return around the time payment falls due.

How Do Foreign Companies Reclaim Import VAT in Germany?

A VAT-registered business reclaims import VAT as input VAT (Vorsteuerabzug) on its German VAT return, provided it holds the customs import document and has the right of disposal over goods used for taxable activities. The import VAT certificate and customs assessment notice are the evidence that links the deduction to a specific consignment.

The right-of-disposal rule is the common trap. A party named as importer on paperwork but without power of disposal over the goods, such as a pure logistics agent, cannot deduct the VAT. Foreign companies that are not VAT-registered recover through the 13th Directive refund procedure, where reciprocity applies for non-EU businesses, or the 8th Directive for EU-established businesses. For regular importers, German VAT registration is the cleaner route, with no registration threshold for non-established businesses.

Why Do Tariff Classification and Customs Valuation Matter?

The HS/CN tariff code (Zolltarifnummer) sets the duty rate, decides preferential-treatment eligibility, and can affect the VAT rate category. HS/CN means Harmonized System and Combined Nomenclature. Misclassification cascades into wrong duty, wrong VAT, shipment holds, and penalties. Binding Tariff Information (BTI, or verbindliche Zolltarifauskunft) from German customs gives you classification certainty in advance.

Customs value follows the UCC transaction value method, the price actually paid or payable, adjusted under Articles 71 and 72. Used and refurbished goods are not exempt: import VAT applies on their customs value at import. Where no reliable transaction value exists, the UCC fallback valuation methods determine the base, which keeps valuation defensible even for second-hand stock.

How Do You Calculate Landed Cost for German Imports?

Landed cost equals goods price plus freight plus insurance plus customs duty plus import VAT plus brokerage and handling. For a VAT-registered importer, the import VAT is recoverable, so it is a cash-flow item rather than a true cost. Treating recoverable VAT as margin cost is the most common landed-cost modeling error.

Formula: landed cost = goods + freight + insurance + duty + import VAT + brokerage. Using the worked example, the €10,000 consignment carries €400 duty and €2,166 recoverable import VAT, so the real margin cost is roughly €11,400 plus handling once the €2,166 is reclaimed. Model the VAT as a timing line, not a permanent expense.

What Are the Most Common Import VAT Compliance Mistakes?

The recurring failures are wrong customs values, misclassified tariff codes, importer identity mismatches, and poor IOSS or courier document tracking. Each one is avoidable with consistent data between your commercial records and your customs declarations. Weak documentation is what turns a routine import into a reclaim denial or an audit finding.

Compliance software is the structural remedy. It keeps classification, valuation, and documentation consistent across every shipment, which is where manual spreadsheet processes break down.

How We Help With Import VAT in Germany

Commenda’s global indirect tax software tracks your VAT registrations, filings, and deadlines across jurisdictions, so import VAT reclaim and reporting stay aligned with your customs data. You get one view of which shipments generated which import VAT and where reclaim or deferment applies, instead of chasing documents across brokers and spreadsheets.

Commenda connects to your stack through 100+ ERP, API, and custom integrations, so customs entries and VAT returns reconcile automatically. If you are a regular importer, VAT registration in Germany is the foundation for efficient reclaim, and the compliance calendar keeps the 26th-of-the-second-month deadline and your return filings on one timeline.

Book a demo to see where your German import VAT is recoverable and get your filings on one calendar.