Germany Approves Import VAT Offset Model from 2030

Germany’s Finance Ministers’ Conference approved introducing a set-off model for import VAT, following a proposal by a federal-state working group.
The new system is intended to be available from 1 January 2030.
Under the model, import VAT would no longer be paid to customs; instead, businesses would report it in their VAT return and deduct it simultaneously as input tax, making the process more liquidity-neutral and streamlined.
The model aims to replace differing payment timings with a more automated procedure and is described as already standard in other EU countries, including for SMEs.
The DStV urged the federal government to quickly propose the necessary legislative changes and for federal and state authorities to prepare the required technical infrastructure.

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