German low value consignment stock VAT

  • Jul 3, 2015 | Richard Asquith

German low value consignment stock VAT

The German fiscal court (BFH) ruled this year on the details of the application of import VAT relief for small consignment sales to consumers.

Under the EU VAT Directive, imports of small value packages are exempt from the usual import when sold to EU consumers. EU member states are free to set their own limits. Germany’s, along with most EU states is €22 per transaction per day per individual consumer.

In a case this year, the BFH ruled that if a non-EU importer appoints an carrier with a German fixed establishment as the declarant for import at customs, then import VAT becomes liable if the correct declaration is not made. The German agent did not do this.

The EC has proposed withdrawing the low-value consignment stock relief mechanism as it provides an unfair advantage to non-EU importers over local providers.

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is the former VP Global Indirect Tax at Avalara