Tax and Duty
When exporting to Germany, various aspects have to be considered: Customs and taxes, quality and environmental standards, trademark and competition rules are just a few of them.
In general, the importer is responsible for clearing the items to put the goods in circulation in Germany. Exporters need to be informed on prerequisites of penetrating the German market, if only for pricing purposes. In reference to customs duties for goods which are exported to Germany, the goods' country of origin is of utmost importance.
All industrial imports are subject to an "Import sales tax" of 19%. It is equivalent to the value-added tax (VAT) which is levied on all domestically produced items, thus placing the same tax burden on imported and domestic products. The import turnover tax is charged on the duty paid value of the import article plus a customs duty. A discounted tax of 7% is levied on food products, books, newspapers, pieces of art etc.
Within the Single European Market, a community-wide system of VAT collection is in place. National VAT is levied on the product at the place of production. Buyers can deduct it as input tax in their home country, provided that the supplier has got a valid value added tax identification number.
Customs duty as well as tax are collected by the German customs authorities.
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