Indirect Customs Agent’s Right to Deduct Import VAT as Input Tax

• The German Federal Fiscal Court (BFH) had to address the question of whether an indirect customs representative, who only provides customs or transportation services, is entitled to deduct import VAT as input tax.
• According to the BFH, in order for a company to be eligible for the deduction of import VAT, the imported goods must be used for taxable transactions of the company.
• If the company only provides customs or transportation services in relation to the imported goods, it is not entitled to the deduction of import VAT.
• In the case at hand, a GmbH acted as an indirect customs representative for a Turkish company and declared electronic goods for release into free circulation. The customs office released the goods and imposed import VAT on the GmbH as a joint debtor with the Turkish company.
• Since the goods did not arrive at the recipient in Germany, the GmbH waived the right to submit the customs declaration as agreed.

Source: datenbank.nwb.de

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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