03. enero 2019

Import Sales Tax - reform of reclaim procedure called for

Professional associations in the logistics industry have criticized the procedure for reclaiming import VAT in Germany for a long time. At present, sales tax is levied on the import of goods into the EU by customs, a federal government agency. However, the refund is a federal state task, which implies that the processing of refunds creates a high administrative burden for all involved. In addition, importers have high costs for interim finance and, in certain instants, the placement of guarantees. Within the EU only Germany, Cyprus, Ireland and Great Britain do not allow the offset of import sales tax against VAT, i.e. these countries are at a disadvantage within the EU. Remedial action in Germany is in sight:

In the future it might no longer be necessary to pay import sales tax at the time of the import. Instead, the procedure will be simplified by offsetting import tax against VAT. At least the finance ministry’s undersecretary announced he is confident that until 2021 the current situation will be resolved.