No pre-financing of import VAT as of 2030

Summary

On 10 September 2026, the German Conference of Finance Ministers endorsed an offsetting model under which import VAT would be reported in the periodical VAT return and simultaneously recovered as input VAT. The federal government has been asked to initiate the necessary legislative changes, with availability targeted for 1 January 2030. [finanzverw…ung.nrw.de], [dstv.de]
The reform would benefit German importers by removing, where full input VAT recovery is available, the need to pre-finance import VAT through customs before reclaiming it in the VAT return. This should reduce financing costs, simplify administration and improve the competitiveness of German ports and logistics locations. [kmlz.de], [finanzverw…ung.nrw.de]
The resolution is an important policy milestone, but it is not yet enacted legislation. Implementation will require federal legislative amendments, coordinated data exchange between customs and state tax authorities, and significant IT development. Businesses should therefore monitor the design carefully, including eligibility conditions, authorisation requirements and reconciliation processes. [finanzverw…ung.nrw.de], [kmlz.de]

Article

The German Conference of Finance Ministers agreed on 10 September 2026 to support the introduction of an import VAT offsetting model. The initiative was submitted by North Rhine-Westphalia together with Hamburg, Hesse, Bremen and Bavaria, following work by a federal-state working group. The Conference approved the group’s concept and asked the federal government, in cooperation with the federal states, to bring forward the required legislative changes. The stated objective is to make the new model available from 1 January 2030. [finanzverw…ung.nrw.de], [dstv.de]

Under Germany’s current procedure, import VAT is generally assessed and collected by the customs administration. Without payment deferment, it is normally due within ten days under Article 108(1) of the Union Customs Code. A business entitled to deduct the tax may subsequently claim it as input VAT in the relevant periodical VAT return. The timing difference can create a material cash-flow burden, particularly for businesses with substantial or frequent imports. [kmlz.de]

Under the proposed offsetting model, businesses would instead declare import VAT in their periodical VAT return and claim the corresponding input VAT deduction at the same time. For a fully taxable business with complete deduction entitlement, the two amounts should broadly offset without an actual cash payment. This would bring Germany closer to established approaches in several other EU Member States, including the Netherlands and Belgium, and could make German ports and logistics operations more attractive for EU import flows. [kmlz.de], [finanzverw…ung.nrw.de]

The announcement should nevertheless be treated as a policy decision rather than completed legislation. Federal statutory amendments are still required, and the detailed operating rules have not yet been published. A central implementation challenge will be the timely and reliable exchange of import data between the federal customs administration and the tax authorities of the federal states. The authorities will also need to develop the supporting IT infrastructure before the intended 2030 launch. [finanzverw…ung.nrw.de], [kmlz.de]

The commercial value of the reform will depend heavily on its final design. In particular, policymakers will need to determine whether access will be automatic or subject to customs authorisations, guarantees, compliance history or other eligibility requirements. If businesses must continue to obtain administratively demanding customs approvals, part of the intended simplification could be lost. [kmlz.de]

Importers should monitor the legislative process and assess their current import VAT funding costs, deferment arrangements and customs data flows. Tax and customs teams should also consider whether ERP systems can reconcile customs declarations with VAT-return reporting at transaction level. Until legislation takes effect, existing German import VAT payment, deferment and recovery procedures remain applicable.

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Other articles

On September 10, 2026, the Conference of Finance Ministers resolved to integrate import VAT into Germany’s periodical VAT returns, allowing businesses to declare and offset it simultaneously, a long-sought change.
This shift from direct payment to customs authorities would offer significant liquidity advantages for businesses, streamline administration, and enhance Germany’s attractiveness as a logistics hub, similar to models already successful in the Netherlands and Belgium.
While the resolution marks progress, practical implementation challenges remain, particularly concerning data exchange between federal and state authorities and ensuring the new model avoids bureaucratic hurdles similar to current customs authorizations for payment postponement.

Source KMLZ