Economic stimulus program: import sales tax due with a delay

28. Jul 2020

In the context of the Corona crisis, the Federal Government and the Länder have agreed on a comprehensive economic stimulus package. In addition to the reduction in sales tax from 19% to 16% (or from 7% to 5%), the change in the deadline for import sales tax is another measure on this package.

Corona economic program of the federal government
Federal government’s economic stimulus program (source: Federal Ministry of Finance )

Import sales tax due later

The previous regulation states that the import sales tax with the vulnerable customs debt is levied by the responsible customs administration. Until now, the tax had to be paid by the debtor within 10 days of notification. Companies have so far been granted a deferred payment of up to one month on application if they were entitled to a full input tax deduction with regard to import sales tax (Section 21 (3) UStG).

With the new regulation of the stimulus package to deal with the Corona crisis The due date of the import sales tax is postponed to the 26th of the second month following the import . This regulation reduces the cost of pre-financing import sales tax and saves companies’ liquidity.

With this regulation, the federal government creates the leveling of competitive conditions with other member states of the EU. Direct offsetting of import sales tax and input tax credit is already possible there.

Reduction of competitive disadvantages in German ports

This reduction in disadvantages is particularly noticeable in the German ports. So far, the neighboring European ports have had a competitive advantage in this regard. In neighboring European ports, for example, import sales tax could be offset directly for intra-community deliveries. The direct offsetting of the import sales tax with claims for reimbursement of the same as input tax that arise later anyway is an improvement for German ports. That improves the Handling of port orders in the German seaports.

The date for the application of the regulation has not yet been set

No date has yet been set for the application of the regulation on import sales tax. This is with Letter from the Federal Ministry of Finance (BMF) announced. Before the measure can be applied, IT requirements must be created on the part of the customs administration and companies. The BMF is pursuing a multi-stage implementation. In this implementation variant, the first step is to postpone the due date largely without any changes being made for companies.

As announced by customs, no preparatory actions are currently required on the part of the company. Applications to postpone the due date or applications relating to the relevant permits are not required. Customs will inform you promptly on their website as soon as further details are known.

Process port orders

Advantage Logistics and Port Organisation (ALPO) is the central platform for handling port orders in all German seaports as well as the western ports in Belgium and the Netherlands.

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dbh Logistics IT AG
Martina Silva

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