German import postponed VAT accounting

Introduction of cash-free import VAT option promised

Germany is likely to become the latest EU country to introduce postponed VAT accounting. This allows importers of goods into Germany to avoid a cash payment of import VAT; instead just making a declaration in their next German VAT return.

The reform is promised in the new government coalition agreement, Responsibility for Germany.  As most other EU member states offer the favourable cash flow incentive, German ports, airports and land customs points are seen as losing out on EU import services.

Currently, Germany allows of a 28-day delay on the import VAT payment which would otherwise be due at the point of clearing German customs.  But this may require a bank guarantee in many cases.

See more in our German VAT guide.

EU Postponed VAT Accounting