German ministers in favour of optimizing tax levying mechanism for importation VAT

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Specifically, the central association of German seaport operators – ZDS is in favour of this additional resolution by a state ministers’ conference.

Recently, both the state finance ministers, as well as the state economics ministers discussed about the optimization of the tax levying mechanism.

Now, the state transport ministries believe that the current mechanism impairs Germany’s competitiveness and deprives the German tax authorities of potential tax income.

Moreover, ZDS pushes on the tax levying mechanism for importation VAT to be reformed as fast as possible.

As the annual report of German Customs published, in 2018 about 59.4 billion euros were levied in import VAT compared to 55.9 billion euros in 2017.

The offsetting model, which is favoured by both those involved commercially and that was also identified as the most comprehensive solution by the responsible federal/states working group, should therefore be quickly implemented.

This is the only way to counteract the acute competitive disadvantage for the importers, forwarders, air- and seaports located in Germany. In addition, both tax and Customs revenue will be diverted from abroad to Germany.

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