Import VAT accrual in centralised customs clearance

Background

Centralised customs clearance is a simplified customs procedure within the European Union that allows companies to submit their customs declarations to a single customs office of their choice, regardless of which Member State the goods are physically located in or where they enter the EU. This allows all customs-related formalities to be bundled and processed centrally, while the actual presentation and any necessary goods inspections take place at another location in the EU. This procedure offers particular advantages to businesses with multiple production, logistics or entry points, as it reduces administrative effort, harmonises internal processes and ensures uniform customs support. In order to use centralised customs clearance, an authorisation from the customs authorities is required, which usually requires proof of reliable internal control structures and secure electronic communication with customs. Overall, centralised customs clearance helps to speed up processes, use resources more efficiently and significantly simplify customs clearance within the EU.

So while the customs debt arises in the EU Member State where the customs declaration is submitted, the import VAT depends on where the goods enter the EU economic cycle. This is based on the case law of the European Court of Justice. § 21b (1) of the UStG now expressly stipulates that, when using centralised customs clearance, the import VAT accrues at the place of presentation or at the place where the goods are located in the Germany if there is an exemption from the obligation to present them.

If the central customs declaration is submitted in another Member State, even though the goods are presented in Germany, the practical simplification would be undermined if an additional tax return for importation were required in Germany. Therefore, according to § 21b (3) sentence 1 UStG, the transmission of the customs declaration from the other Member State to the competent customs authority in Germany is considered a tax return. The prerequisite is that it has been recorded in a processable manner and contains all the information necessary for determining the import VAT. In addition, the declarant or his representative must have an authorisation for the deferral of import VAT. If these requirements are not met, a tax return for import must be submitted in Germany.

Practical relevance

The new regulation represents a significant practical simplification for companies that use centralised customs clearance in accordance with Article 179 UCC, as it eliminates the need for a separate tax return in Germany. Only then can the advantages of centralised customs declaration be fully realised, as the flow of goods and declaration obligations are completely decoupled. This reduces compliance costs and, potentially, tax consulting costs.

It should be noted that § 21b of the UStG only applies to goods presented or (in the case of exemption from presentation) located in Germany. Regulations in other EU member states must be checked.

Author: Nadia Schulte, Friederike von Borries