Input VAT deduction in the case of import VAT

BMF, guidance of 16 July 2020 ‒ III C 2 – S 7300-a/19/10001 :004

The German Ministry of Finance
(BMF) has clarified the
requirements for the deduction
of import VAT in accordance
with § 15 (1) sent. 1 no. 2 UStG.
As before, an import exists for
the company if the trader ships
the imported item in Germany for
the transfer of free circulation
and home use of goods and
subsequently, in the course of
their commercial activities uses it
to execute transactions. This
requirement exists for the trader
who, at the point in time of the
transfer to free circulation and
home use of goods, possesses
the authority to dispose of the
item.