- On 10 September 2026, Germany’s Finance Ministers agreed to integrate import VAT into the periodic VAT return offsetting system, moving toward a long-planned reform.
- Under the proposed model, businesses would no longer pay import VAT upfront to customs and later reclaim it; instead, they would declare and offset import VAT directly in the VAT return through input VAT deduction.
- The main practical benefit is improved liquidity, as import VAT would be settled without the current pre-financing burden.
- The reform is also expected to make Germany more attractive as a logistics location, following similar systems long used in the Netherlands and Belgium.
Source: kmlz.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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