Import VAT in Germany: Calculation and practice
Import VAT (EUSt) is the German value-added tax on goods imported into Germany from non-EU countries. The formula is: EUSt = Taxable amount × VAT rate (19% or 7%)The tax base consists of the customs value + customs duty + any excise duties + intra-Community transport costs. A simple example: Given a certain value of goods, freight costs to the EU border, and a customs duty rate, the tax base is calculated from which the EU import VAT is determined. Collection is carried out by the Federal Customs Administration on the basis of the Value Added Tax Act (UStG) and the Union Customs Code (UCC).
Key points at a glance:
- Tax rates: regular 19% or reduced 7%, for example on certain goods such as books or food.
- Time of origin: Acceptance of the customs declaration by customs
- Input tax deduction: Companies can claim EU VAT as input tax.
- Since July 1, 2021, there is no longer a general €22 tax-free allowance.
Table of Contents
- What legal bases govern import VAT in Germany?
- When does EUSt arise, who owes it and what exceptions apply?
- How is EU VAT calculated? Formula, components and two calculation examples.
- How is the customs value determined and what errors occur during customs declaration?
- When and how can companies deduct EU VAT as input tax?
- What does the IOSS procedure regulate for shipments up to €150?
- What steps and documents do traders need for customs declaration?
- What are the consequences of an incorrect or insufficient EU VAT return?
- Key insights
- How Paket International relieves retailers of the burden of customs clearance
- Useful official sources for further reading
What legal bases govern import VAT in Germany?
Import VAT is enshrined in Section 1 Paragraph 1 Number 4 of the German VAT Act (UStG) as an independent taxable event. Section 21 of the German VAT Act stipulates that customs regulations apply mutatis mutandis to import VAT. It is collected by the Federal Customs Administration (zoll.de), not by the tax office.
The purpose is clear: Domestic goods are already subject to VAT, while imported goods from third countries are not. EU VAT establishes this tax balance and prevents imports from being favored over domestic products. Functionally, it is equivalent to VAT, but it is levied during the import procedure.
Overview of the legal framework: The German VAT Act (UStG) provides the national legal basis, while the Union Customs Code (UCC) governs customs procedures at the EU level. Both sets of regulations are interconnected. Anyone who imports goods commercially must be familiar with both.
When does EUSt arise, who owes it and what exceptions apply?
EU import VAT arises the moment the customs declaration is accepted by the customs authorities and the goods are released for free circulation. The person liable for the tax is the declarant in the customs sense, which is usually the importer or their customs forwarder.
For companies, this means that even if a foreign supplier delivers the goods "duty unpaid and tax unpaid," the importing company remains liable to customs. responsibleContractual agreements with the exporter do not change this.
Relevant exceptions and special cases:
- IOSS procedure: For distance sales up to €150, VAT can be collected at the time of purchase; with a correct IOSS ID, import VAT is waived.
- Abolition of the 22-euro tax-free allowance: Since July 1, 2021, EUSt (European Union Tax) is generally levied from the first cent.
- Customs transit procedures: Goods under customs seal (e.g. in the external transit procedure T1) do not yet trigger EUSt.
- Tax exemptions: Certain goods (e.g., returned goods, humanitarian goods) are exempt under certain conditions.
- EORI number: Every company that imports goods commercially needs an EORI number for customs declaration.
How is EU VAT calculated? Formula, components and two calculation examples.
The assessment basis consists of:
- Customs value (price of goods + freight to the EU external border + insurance)
- Customs duty amount
- Excise taxes (if applicable)
- Intra-Community transport costs (freight from EU border to destination)
Formula: EUSt = (Customs value + Customs duties + Excise duties + Intra-Community transport costs) × VAT rate
Calculation example 1: B2B import (goods value €1.000)
| Component | amount |
|---|---|
| Merchandise price (FOB) | 1.000,00 € |
| Freight to EU border | 150,00 € |
| Insurance | 10,00 € |
| Customs value | 1.160,00 € |
| Customs (5%) | 58,00 € |
| Intra-Community freight | 40,00 € |
| Assessment basis | 1.258,00 € |
| EUSt (19%) | 238,02 € |
Calculation example 2: Small shipment (goods value €100)
| Component | amount |
|---|---|
| Price of goods | 100,00 € |
| Freight to EU border | 15,00 € |
| Customs value | 115,00 € |
| Customs (5%) | 5,75 € |
| Intra-Community freight | 0,00 € |
| Assessment basis | 120,75 € |
| EUSt (19%) | 22,94 € |
The reduced tax rate applies to certain goods that are also taxed at a reduced rate domestically, such as books and food. The customs tariff number determines which rate applies.
How is the customs value determined and what errors occur during customs declaration?
The customs value is based on the transaction value, i.e., the actual price paid or payable for the goods, plus all costs incurred up to the EU external border. This includes freight, insurance, and commissions borne by the buyer. Costs incurred only after importation are not taken into account.
The Customs tariff number The TARIC code is the central classification tool. It determines the customs duty rate, any import bans, anti-dumping measures, and special regulations. An incorrect tariff number leads directly to an incorrect calculation of import VAT and thus to additional tax demands.
Common mistakes in customs declarations:
- Incorrect or inaccurate customs tariff number
- Missing ancillary costs (freight, insurance) in the assessment basis
- Incorrect origin declarations that prevent preferential tariffs
- Incomplete commercial invoices lacking quantity and price information
- Missing or outdated EORI number
Pro tip: Before importing a new product group for the first time, it is advisable to obtain a binding tariff information (BTI) ruling from customs. This protects against subsequent demands and provides planning certainty for cost calculations.
Document verification includes at least: commercial invoice, packing list, waybill (CMR, AWB or B/L), certificate of origin (if preferences are claimed) and the customs declaration itself.
When and how can companies deduct EU VAT as input tax?
Businesses entitled to deduct input tax can claim the import VAT paid as input tax in accordance with Section 15 of the German VAT Act (UStG). The prerequisite is that the goods are used for business purposes and the business is entitled to deduct input tax.
Acceptable evidence includes the following: Import duty noticeThe ATLAS tax notification and the tax assessment notice from the Federal Customs Administration must be retained and included in the preliminary VAT return.
A key liquidity advantage: Input tax deduction can be claimed in the preliminary tax return period in which it arises, regardless of whether the import VAT has actually been paid to customs. Those who also apply for a deferral of payment can pay the import VAT by the 26th of the following month and will have already claimed the input tax deduction in the meantime.
Typical accounting pitfalls: Import VAT must not be mixed with customs duties. Both must be recorded separately. Anyone who incorrectly books import VAT as a business expense instead of input tax will lose their right to a refund.
What does the IOSS procedure regulate for shipments up to €150?
The IOSS (Import One-Stop Shop) procedure allows online retailers to collect VAT on distance sales with a value of up to €150 at the point of purchase and remit it via a central registration in an EU member state. Shipments with a valid IOSS ID are exempt from import VAT.
According to the Chamber of Industry and Commerce (IHK) information sheet Regarding VAT on deliveries from third countries: If the retailer is not registered for IOSS, the tax liability lies with the recipient. The parcel service then collects the import VAT upon delivery, often plus a service fee.
For retailers in B2C distance selling:
- Advantages: Better customer experience, no unexpected delivery costs.
- Advantages: Clearer price display possible at checkout
- Disadvantages: Monthly IOSS reporting requirement, increased administrative burden
- Decision rule: IOSS is worthwhile if the shipment volume to the EU is high and the administrative effort can be automated.
The previous €22 exemption limit no longer applies since July 1, 2021. Retailers who continue to rely on this regulation risk being asked to pay additional taxes.
What steps and documents do traders need for customs declaration?
A complete customs declaration requires preparation. The following checklist covers the essential obligations:
- Apply for an EORI number at the Federal Central Tax Office (BZSt), if not already available.
- Determine the customs tariff number (TARIC). for each product group; if in doubt, obtain binding customs tariff information.
- Create a commercial invoice with complete details of product name, quantity, price, country of origin and delivery conditions.
- Provide freight documents (CMR, air waybill, bill of lading depending on the mode of transport).
- Customs declaration via ATLAS submit it yourself or have it submitted by an approved customs forwarder.
- Keep the import duty notice. for input tax deduction.
- EU VAT payment or deferral Organize; observe the deadline (26th of the following month in case of postponement).
Automation tools such as the Shipping platform of Paket International Customs calculations, document creation, and tariff classification are handled directly from the online shop or ERP system. This reduces manual data entry and thus the most common source of errors.
Pro tip: Those who apply for a deferral of EU VAT payments noticeably improve their liquidity: The input tax can be deducted in the month it is incurred, and payment to customs is only made on the 26th of the following month.
For online retailer For high import volumes, it is also recommended to connect via an API interface, which automatically checks customs tariff numbers and calculates assessment bases in real time.
What are the consequences of an incorrect or insufficient EU VAT return?
Errors in import VAT declarations rarely go undetected. The Federal Customs Administration reviews customs declarations during company audits and can claim back payments for up to four years.
Typical consequences:
- Additional demand the underpaid EUSt plus interest
- Fines (€) in case of careless misdeclaration
- Customs penalty proceedings in cases of intentional tax evasion
- Importer's liability even in the event of errors by the commissioned freight forwarder
Immediate action in case of identified errors: Secure the relevant documents, inform the responsible customs forwarder, and consider amending the customs declaration. For substantial sums, a tax advisor specializing in customs law should be consulted. A voluntary self-disclosure can reduce penalties if the error is disclosed before an official audit.
Documentary diligence pays off: Companies that fully archive commercial invoices, freight documents, and ATLAS declarations can react quickly during audits and limit subsequent claims. Companies that rely on automated customs processing have a structural advantage here because all relevant documents are stored centrally.
Key insights
EUSt arises upon acceptance of the customs declaration, applies from the first cent and is fully refundable for companies via input tax deduction.
| Theme | Details |
|---|---|
| Calculation of EUSt | The tax base (customs value + customs duties + incidental costs) × 19% (standard rate) or 7% (reduced rate) results in the tax due. |
| Use input tax deduction | Companies deduct EUSt according to § 15 UStG; proof via import duty assessment or ATLAS document. |
| IOSS for B2C shipments | Distance sales up to €150 can be pre-taxed via IOSS; with a correct IOSS ID, import VAT is waived. |
| Exemption limit abolished | Since July 1, 2021, EUSt (European Union Import Tax) is generally levied from the first cent; there is no longer a 22-euro exception. |
| International Package | Automated EUSt calculation, tariff classification and document management for traders with import volume. |
How Paket International relieves retailers of the burden of customs clearance
Anyone who regularly imports from third countries knows the effort involved: checking customs tariff numbers, calculating assessment bases, archiving documents. Paket International takes over precisely these routine tasks fully automatically.
The platform calculates import VAT and customs duties in real time, directly during the shipping label creation process. Merchants receive transparent landed cost calculations before the goods are even shipped. This prevents surprises for the recipient and makes pricing predictable. More information is available online. customs clearance All relevant documents can be managed centrally; ATLAS interfaces are directly integrated. A direct connection is also available for shop operators. Import duties already included in checkout The platform reduces manual intervention and thus noticeably lowers the error rate in customs declarations. Those who use it reduce manual intervention and thus significantly lower the error rate in customs declarations.
Useful official sources for further reading
For importers who want to delve deeper into the legal situation and practical application, the following sources are recommended:
- Federal Customs Administration (zoll.de): First point of contact for customs declaration procedures, ATLAS access, binding tariff information and current regulations.
- Chamber of Industry and Commerce (IHK) information sheet on value added tax for deliveries from third countries: Practical explanations of IOSS, distance selling regulations and special cases.
- Umsatzsteuergesetz (UStG): The relevant paragraphs are § 1 para. 1 no. 4, § 11, § 15 and § 21 UStG.
- EU Customs Tariff Information (TARIC): Binding classification of goods and query of applicable customs duties at EU level.
- Customs tariff number.com Customs calculator: Practical tool for quickly calculating customs duties and EUSt based on specific goods values.
Note: This article is for general information purposes only and does not replace tax or customs advice. For your specific situation, it is recommended that you consult a tax advisor or the relevant customs authority.