- When a good enters the European Union from a third country, it usually incurs import VAT
- There are questions about whether and by whom the German import VAT can be deducted as input tax
- Problems often arise in this context, and this article explains the requirements, highlights special considerations, and discusses the potential for deducting import VAT as input tax through a sale under retention of title
- The deduction of import VAT can generally only be done by the entrepreneur who has control over the imported item at the time of release into free circulation
- Special considerations apply to rental agreements and commission transactions
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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