The most important customs and tax duties for foreign companies in Germany

1. customs duties (import duties)

When importing goods from Third countries (non-EU countries) to Germany are generally subject to customs duties. The amount depends on the product and its country of origin.

a) Customs tariff and commodity code (HS code)

• Each product has its own Commodity code after the Harmonized System (HS code).
• This number is used to determine the Duty rate determined.
• The customs tariffs can be found in the TARIC system of the EU look up.

b) Preferential tariffs & free trade agreements

• If there is a Free trade agreement between the EU and the exporting country (e.g. with Canada, Japan or South Korea), the EU can Reduced or duty-free imports be possible.
• This requires the Proof of origin documentation correctly (e.g. EUR.1 or supplier's declaration).

2. import sales tax (EUSt)

The Import sales tax (EUSt) is a type of VAT that is levied when goods are imported into Germany.

• The standard tax rate is 19 %.
• A reduced rate of 7 % applies to certain goods, e.g. food or books.
• The tax is levied on the Value of goods + customs duty + transportation costs to the EU border calculated.

3. excise duties

For certain products additional taxes that go beyond customs and import sales tax. These include:

• Energy tax (e.g. on gasoline, diesel, heating oil)
• Tobacco tax (e.g. for cigarettes and tobacco products)
• Alcohol tax (e.g. for beer, wine, spirits)
• Coffee tax (for coffee products)

These taxes are independent of the import and must also be paid on sales within Germany.

4. sales tax (value added tax) in Germany

If a foreign company sells goods or services in Germany, it must register with the Value added tax (VAT) deal with.

a) Registration obligation for foreign companies

• If a company No permanent establishment in Germany but sells goods to end customers there (e.g. via an online store), it must register in Germany. register for sales tax.
• Registration takes place at Federal Central Tax Office (BZSt).
• After registration, the company receives a German sales tax identification number (USt-IdNr.).

b) VAT rates

• 19 % Standard tax rate (e.g. for electronics, clothing, furniture).
• 7 % reduced tax rate (e.g. for food, books, medicines).

c) Reverse charge procedure

• If a foreign company provides services to German companies, the following often applies Reverse charge procedure.
• In this case, the German customer pays the VAT himself and the foreign company must pay the VAT itself. not register in Germany.

5. trade tax

If a foreign company has a Establishment in Germany has, it must Trade tax pay.

• The amount varies depending on the city/municipality (approx. 7 % to 17 % of the profit).
• Companies without a permanent establishment are Not affected.

6. corporation tax & income tax

If the company in Germany has a Branch or subsidiary has, it is subject to the German Corporate income tax (for corporations) or Income tax (for sole proprietorships).

• Corporate income tax15 % of the profit + 5.5 % solidarity surcharge.
• Income taxProgressive tax between 14 % and 45 % (depending on the amount won).

7. customs procedures for tax optimization

In order to reduce customs duties and taxes, foreign companies can use certain Customs procedures use:

a) Customs warehousing procedure

• Goods can duty free in one Bonded warehouse be stored.
• Duties and taxes only apply when the product is removed and sold within the EU.

b) Active refinement

• If goods are further processed in Germany (e.g. assembly, repair), customs duties may be suspended or waived.

c) Temporary use

• If goods are only at times are brought to Germany (e.g. for trade fairs or tests), the import may be tax-free take place.