Import VAT – Current procedure does not allow for offsetting of import VAT against “regular” input VAT

• Import industry pushing for changes in import VAT procedures
• Fristenmodell introduced in December 2020 for easier payment of import VAT
• Current procedure does not allow for offsetting of import VAT against input VAT
• Calls for immediate offsetting of import VAT like in other EU countries
• Finance ministers conference reportedly agreed to advance offsetting model
• Hope for offsetting import VAT in VAT return to be cost-neutral
• Potential for significant bureaucratic reduction and competitive advantage for German ports
• Reform in VAT procedures can benefit traditional economy as well as digital age industries

Source: blog.esche.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.

---

---