Germany’s 2025 Tax Amendment Act: Import VAT Rules for Centralised Customs Clearance

 

Introduction

Germany has enacted significant changes to its VAT framework through the Tax Amendment Act 2025, introducing new provisions for centralised customs clearance and import VAT administration. These changes, effective 1 January 2026, aim to align German VAT law with the Union Customs Code (UCC) and streamline processes for businesses engaged in cross-border trade within the EU.

Legal Basis

The amendment inserts §21b into the German VAT Act (Umsatzsteuergesetz – UStG), governing VAT treatment in cases where customs declarations are lodged in another EU Member State under Article 179 UCC.

• https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32013R0952
• https://www.gesetze-im-internet.de/ustg_1980/

Key Rules Under §21b UStG

• 1. Place of Import VAT Liability
  • Import VAT arises in Germany:
  • At the place of presentation of goods in Germany, or
  • If presentation is waived, at the location of goods in Germany when the customs declaration is accepted.
• 2. Competent Authority
  • Assessment and collection of import VAT are performed by the German customs office, centralising liability and cash flow within domestic authorities.
  • https://www.zoll.de/EN/Home/home_node.html

Customs Declaration as VAT Declaration

The foreign-lodged customs declaration can serve as the VAT declaration if all conditions are met:

• Transmission of the declaration to German customs.
• Inclusion of all material data required for VAT assessment.
• Reference to an authorised payment deferral (Zahlungsaufschub) under UCC Article 110(b) or (c).
• https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32013R0952

If these conditions are not satisfied, businesses must file a separate VAT declaration in Germany.

Electronic Assessment and Compliance

• Tax assessments will be issued electronically or made available for data retrieval under AO §122a.
• https://www.gesetze-im-internet.de/ao_1977/__122a.html

Businesses must ensure electronic receipt capability for these notices to remain compliant.

Practical Implications for Businesses

• No duplicate filings: Where conditions are met, the customs declaration lodged in another EU Member State will fulfill VAT declaration requirements in Germany.
• VAT remains payable in Germany, even if customs clearance occurs elsewhere.
• Digital readiness: Companies should prepare for electronic notifications and retrieval systems.
• Cash flow considerations: Payment deferral options under UCC can ease liquidity pressures.

Effective Date

The new rules take effect 1 January 2026, following publication of the amendment act on 23 December 2025.

• https://www.bgbl.de/

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