24. mayo 2019

Top-level politicians support battle against competitive disadvantage due to reclaim procedure of VAT in Germany

German proceedings for claiming a refund of import VAT cause high costs for importers. These expenses do not incur in the neighbouring EU countries where import VAT for non-EU commodities imported by local entreprenerus can be reclaimed under the reverse charge mechanism and need not be paid upon filing the customs entry. This is why urgent demand for action is required by the federal republic government and its federal states in order to eliminate the current competitive disadvantage in this field at German ports and air ports, to improve liquidity and cut costs for German importers.

Optimizing the procedure for reclaiming import VAT in Germany comes to the attention of the highest level in politics: During her opening speech at the National Maritime Conference in Friedrichshafen, Lake Constance, Chancellor Angela Merkel said that an improvement in the VAT filing procedure is a helpful means to strengthen the competitive position of German ports and air ports. It appears that long-term protest of professional associations has had a positive effect.