Import turnover tax
Goods imported into Germany from a non-European-Union country are also subject to value-added tax, but value-added tax on imports is called "import turnover tax".
In contrast to value-added tax (VAT), this is an excise duty and import levy within the meaning of customs law. Import turnover tax is levied by the Federal Customs & Excise Administration. Import turnover tax can be owed either by an entrepreneur or by a private individual. Entrepreneurs can deduct import turnover tax from their value-added tax bill, provided the items have been procured for business purposes.
The assessment base for import turnover tax is the so-called "customs value". Various costs have to be added to the customs value, e.g. freight costs from the EU border to the goods? (initial) destination in this country.
The tax rate for imported goods is the same as it is for turnovers within the country. It is 19 percent of the assessment basis; for certain goods it reduces to 7 percent.
Further information on import turnover tax can be obtained on the Internet under Federal Customs & Excise Administration.
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