Foreign companies based in non-EU countries that import goods into Germany often pay import VAT (Einfuhrumsatzsteuer) at customs. In many cases, this VAT is recoverable — provided that certain conditions are met and the process is correctly followed. Understanding how to reclaim German import VAT is crucial for businesses importing goods for resale or distribution within the EU.
Below is a detailed overview of how the German VAT refund process works for non-EU importers and what happens when the goods are subsequently sold in Germany or other EU countries.
1. When Is Import VAT Payable in Germany?
Whenever a company imports goods from a non-EU country (a “third country”) into Germany, import VAT is charged by German customs at the time of entry. This is usually calculated as a percentage (19% or 7%) of the customs value, including cost, insurance, and freight (CIF).
Even if the goods are not sold in Germany, the import VAT is due at the German border, unless a special customs procedure is used (e.g. transit or bonded warehouse).
2. Can Non-EU Companies Recover Import VAT Paid in Germany?
✅ Yes – under certain conditions, import VAT can be reclaimed, either through:
- Regular VAT registration in Germany (for businesses with taxable activities in Germany), or
- The VAT refund procedure for non-established businesses under §§ 18.9 and 18.11 UStG.
a) VAT Refund via Registration (Standard Input VAT Deduction)
If the company is registered for VAT in Germany (e.g. because it sells goods from a warehouse in Germany or makes local sales), the import VAT can be deducted as input tax (Vorsteuer) in the regular German VAT return (Umsatzsteuervoranmeldung).
Requirements:
- Proper customs documents (e.g. import declaration, ATLAS system proof)
- Invoice or customs form showing your company as importer
- VAT registration and regular filings
b) VAT Refund Without Registration (Non-Established Businesses)
If your company is not registered in Germany and does not make taxable supplies in Germany, you may still apply for a VAT refund once per year via the so-called 13th Directive procedure.
Conditions:
- Your country must have a reciprocity agreement with Germany (e.g. USA, UK, Switzerland, Norway, Japan)
- Application must be submitted by June 30 of the following year
- Supporting documents required (original import forms, proof of payment, etc.)
- No taxable supplies made in Germany during the refund period
3. What Happens When the Imported Goods Are Sold?
Once the goods are imported, they are part of your stock in Germany or the EU. What happens next depends on how the goods are distributed:
a) Local Sales in Germany
- You must charge German VAT on the sale (standard rate: 19%)
- You need to issue invoices with German VAT
- Input VAT (including import VAT) can be deducted through your regular VAT returns
b) Intra-EU Delivery to Another EU Country
- If the goods are shipped to a VAT-registered business in another EU country, this is usually an intra-Community supply and can be zero-rated (0% VAT), provided:
- The buyer has a valid EU VAT number
- Proof of transport is available
- The transaction is reported in the EC Sales List (Zusammenfassende Meldung)
c) Export Outside the EU
- If the goods are re-exported to a non-EU country, the sale is zero-rated as an export
- Export documentation is required (e.g. customs export declaration, shipping documents)
4. Practical Tips for Non-EU Importers
- Ensure your company is correctly listed as the importer of record on the customs documents
- Work with a reliable customs broker or freight forwarder who understands VAT procedures
- Consider VAT registration in Germany if you’re storing or selling goods there
- Use the 13th Directive refund process only if you’re not otherwise required to register
- Keep all customs and shipping documentation organized for audit purposes
Need Support with Import VAT Refunds in Germany?
WW+KN, a Baker Tilly Company, supports non-EU businesses with VAT registration, import VAT recovery, and customs-related tax advice in Germany.
Contact our VAT experts: info@vat-germany.com
