Import
Any business importing goods into Germany will have dealings with different public authorities. These dealings will depend on the country of origin of the goods, i.e. whether the goods originate from within the European Union (intra-Community trade) or outside it (extra-Community trade), and specifically concern taxation issues and customs legislation.
Importing goods - an overview
Taxes and obligations when importing goods from other European Union countries
Applying for a Value Added Tax (VAT) identification number
Before importing or trading in goods for the first time, a business must apply to the Federal Central Tax Office for a VAT identification number. The VAT identification number is a separate number that is assigned to businesses in addition to the tax number assigned by the local tax office. German businesses can also have the Federal Central Tax Office verify a supplier's foreign VAT identification number. This can help eliminate the need for further discussions with the local tax office or the upfront payment of the tax amount in the further course of the import process.
Taxation of acquisitions and advance VAT returns
The acquisition of goods must be declared to the local tax office in the advance VAT return as the acquisition of goods is subject to tax. All businesses that are liable to pay VAT must adhere to this requirement. This is also known as the taxation of the acquisition of imported goods. The acquisition tax can be reclaimed as an input tax.
VAT exemption and the small business rule
In Germany, small businesses are not required to pay VAT if their turnover does not exceed certain thresholds, as defined in the VAT Act (Umsatzsteuergesetz). They do not need to show VAT on their invoices, which also means they cannot reclaim any input tax. In the event of cross-border trade in goods within the European Union, it may, however, be beneficial to apply for a VAT identification number, particularly if the other country has a higher standard rate of tax. For more information on the small business rule, please see the Lebenslage Steuern und Finanzen section.
Obligation to submit a declaration for intra-Community trade statistics
Businesses required to provide information must report all cross-border movements of goods between Germany and other European Union countries to the Federal Statistical Office for the purpose of intra-Community trade statistics. Monthly declarations must be submitted by all importing businesses whose imported goods exceeded a value of 800,000 euros in the previous year. The declarations must contain information on completed transport of goods, including the VAT identification number of the trading partner, the commodity codes, the value of the goods, the countries involved and weight information, for example.
More information available from the customs authorities, the chambers of industry and commerce or the chambers of crafts
If a business wishes to import goods into Germany, it can get more information about any import restrictions or prohibitions that may apply. Businesses can seek advice from the customs authorities, the chambers of industry and commerce and the chambers of crafts.
Customs obligations and taxation when importing goods from non-EU countries
Applying for a registration and identification number
The importing business must request an EORI number from the customs authorities prior to the first import. This is a one-time application. Businesses need this EORI number to declare imports and exports to customs and to clearly identify themselves to the customs authorities. The obligation to provide an EORI number applies from the very first import or export transaction. Businesses can also request an EORI number electronically via the portal of the customs authorities. Any changes to master data are then also implemented via the portal, which has the advantage that businesses can make any necessary changes to their master data themselves. All that is needed for online registration is an ELSTER business account. Alternatively, businesses can also simply fill in a form and send it to the customs authorities by post, e-mail or fax.
Customs and customs tariff information
Goods entering Germany from non-EU countries (third countries) must be cleared by the competent customs office. The customs tariff numbers that are required for the customs declaration contain information on the type of goods, any foreign trade restrictions that may apply, and the customs duties (tariffs) payable on the imported goods. Non-binding tariff information can be obtained or requested online from the customs administration (ezt-online), the Customs Central Information Office and in some cases also from the local customs office.
Binding tariff information (BTI), on the other hand, is a legally binding decision on the correct customs tariff number that will apply for a certain product. In Germany, a BTI application must be submitted electronically to the Main Customs Office in Hanover.
General information on customs formalities is also available from the chambers of industry and commerce, in addition to the competent customs offices.
Import VAT
When importing goods from non-European Union countries, it is necessary to pay import VAT in addition to the duties levied, such as import, anti-dumping, countervailing, preferential or excise duties. In customs legislation, the import VAT is an import duty and corresponds in essence to the value added tax.
Customs declaration
Customs declarations are lodged via ATLAS, the automated tariff and local customs clearance system. An oral customs declaration can be made for consignments with a value of less than 1,000 euros. However, if the value exceeds 1,000 euros, the declaration must be made in writing or lodged via ATLAS. The importer must provide the following particulars about the consignment when making the customs declaration: consignor and consignee of the goods, EORI number of the consignee, preferred customs procedure, place of delivery, transport documents and information on the goods. The customs tariff number (commodity code) is used in this context for the unambiguous classification of the goods.
Declaration of customs value
In addition to the customs declaration, a declaration of customs value must also be lodged for goods with a value of over 20,000 euros. The purpose of this declaration is to determine the actual value of the goods in the consignment. All supporting documents that provide information on the value of the goods, such as invoices or transport documents, must be furnished for this purpose. While the declaration of customs value does not need to be lodged for goods with a value of less than 20,000 euros, it can be requested by the border customs office.
Import restrictions and prohibitions
There are restrictions or prohibitions on the import of certain textile products and items of clothing, agricultural products or certain medicines. The customs administration also enforces strict controls on the import of rare or endangered species. Importers should first consult the Federal Office for Economic Affairs and Export Control - as the competent approval authority - to check whether goods they wish to import are subject to certain restrictions. The Federal Ministry of Food and Agriculture is responsible for the importation of agricultural products. Responsibility for quantitative restrictions on imports may also lie with the Federal Ministry for Economic Affairs and Climate Action.
Import licences
To prevent possible disruption of the agricultural market, the import or customs clearance of certain products, such as rice or hemp, may be subject to a licensing obligation. Further details are contained in Part I of the Annex to Delegated Regulation (EU) 2016/1237. Importers can also look up the "Einfuhrmaßnahmen" (import measures) provided in the EZT electronic customs tariff system for information on whether the importation of a particular product is only permitted with an import licence. According to the Annex to Delegated Regulation (EU) 2016/1237, imports for private individuals or imports of small amounts may be exempt from the licensing obligation.
Free trade agreements and preferential certificates
Germany and the European Union have concluded free trade agreements (FTAs) with a number of third countries. FTAs are designed to enable the exchange of goods with non-EU countries at a reduced or nil rate of duty and to facilitate trade. Such customs advantages are also known as "preferences". These preferential measures therefore constitute preferential treatment under customs legislation for goods from certain countries and territories, and are included in the EZT system as preferential customs duties. Preferences are granted upon application with the importer's assurance of the origin of the goods. Preferential certificates can either be prepared formally by a customs office or issued by the exporter in the form of self-certification.
Declaration for the purpose of extra-Community trade statistics is submitted by the customs administration
While data for intra-Community trade statistics are collected from businesses with a reporting obligation, the figures for extra-Community trade statistics are generally submitted by the customs administration to the Federal Statistical Office. Extra-Community trade statistics are therefore based on data from customs declarations.