In such a case, we talk of a shipment or a sale under DDP terms (Delivery Duty Paid).DDP or Delivered Duty Paid refers to shipments where the shipper (the overseas company not established in Germany) delivers goods sourced from a non-EU country to their final destination in Germany, but already cleared for importation.The overseas company bears all landed costs, including transportation charges, import duty and taxes levied on the goods by the German Customs Authorities.When sending a Delivered Duty Paid (DDP) shipment to Germany, an overseas company handles the shipment to a forwarding agent like FedEx, DHL or UPS, to name but a few. Import or Intra-community Supply? This special customs scheme allows exporters to recover import VAT paid on a DDP delivery into Germany, while offering to their clients the benefit of VAT exemption on their purchases. What if you do not have a VAT number in the country of import?

London, United Kingdom.

EU VAT Deferment

Central & South America It is not possible to report import VAT in the VAT return as input and output.

Amendments to the tax laws in various EU countries covered here could have been passed recently. VAT: 20%. Import VAT is charged on the value of the goods plus transport costs, customs duties, consumption tax and costs of transport within the EU.

This procedure gives rise to import duty and taxes levied by the Customs Authorities.

But this possibility is restricted to the following cases:For the first two points mentioned above, the following conditions must be met:Overseas companies established in the following countries are eligible to recover import VAT in Germany:Andorra | Antigua and Barbuda | Australia | Bahamas | Bahrain | Bermudas | British Virgin Islands | Brunei Darussalam | Bosnia and Herzegovina | Canada | Cayman Islands | Republic of China (Taiwan) | Gibraltar | Greenland | Grenada | Guernsey | Hong Kong | Iceland | Iran | Iraq | Israel | Jamaica | Japan | Jersey | People’s Rep. of Korea (North Korea) | Republic of Korea (South Korea) | Kuwait | Lebanon | Liberia | Libya | Liechtenstein | Macao | Maldives | Marshal Islands | Macedonia | Norway | Oman | Qatar | Pakistan | St. Vincent | San Marino | Serbia | Saudi Arabia | Solomon Islands | Swaziland | Switzerland | United Arab Emirates | U.S.A | Vatican City.Some overseas companies are reluctant to register for VAT in Germany because they do not want to charge local VAT to their German customers, offering them in this way a real advantage in terms of cash flow.Such foreign suppliers can chose to use the “Single Point of Clearance”, a procedure available for exports to EU countries.

Import VAT is a special form of VAT, charged by Customs authorities when you import goods from non-EU countries to Germany. If your company is importing goods into the European Union (‘EU’), then it will face some complex and varying rules on Below are some of the issues companies need to consider. Threshold: GBP 15.

Asia North America In addition, many customers now insist on goods being fully cleared for VAT purposes.This then obliges you to provide a valid VAT number, or register for one if you do not have one.

EU VAT registration This includes both imports and intra-community supplies.So if you are importing goods into the EU, the customs will require either you or your customer to provide a valid EU VAT number.

If you import goods from outside the EU and store them under an inventory system known as a customs warehouse, payment of import duties or VAT can be suspended.

Import VAT is charged on the value of the goods plus transport costs, customs duties, consumption tax and costs of transport within the EU. Some services (such as bank and health services or community work) are VAT exempt. A number of countries (e.g. The Our automation specialists are here to answer any questions you have, click the button below to start a chat. The latter arranges customs clearance in Germany in the name and on the behalf of the shipper.The freight forwarder or carrier pays in advance the duty and taxes to German Customs, and returns an invoice corresponding to the taxes prepaid to the shipper.YES! This must be settled prior to the release of the goods from customs. A reduced 7 percent VAT rate applies to some consumer goods and everyday services (food, newspapers, local public transport, hotel stays). Threshold:

This simplification of the EU VAT system was introduced in the 1993 Free Market Reforms.