Considering becoming VAT registered in Germany

[Debs Toohey]

Hi

I am considering registering for a German VAT number to aid my application for duty refund as well as hopefully improving export clearance for goods shipped there and am interested on hearing anyone's thoughts and experiences along with the advantages and disadvantages for doing so

 

[Customs Geek]

Hi

I am not sure how that will help you with a refund of customs duty.
If you are making supplies in Germany then you will be obliged to register as there is a zero threshold for non EU companies.

 

[NickZ]

I am considering registering for a German VAT number to aid my application for duty refund as well as hopefully improving export clearance for goods shipped there

How does that help?
people, like customers care more about shipping costs than a Mehrwertsteuernummer (VAT Nummer).

 

[Debs Toohey]

Hi

I am not sure how that will help you with a refund of customs duty.
If you are making supplies in Germany then you will be obliged to register as there is a zero threshold for non EU companies.

Sorry for the delayed reply, been busy migrating accounts to Quickbooks.... I say no more on that!! My experience to date both with Germany and USA is that they make it impossible to reclaim any refund for duty paid on goods returned to the UK however fortunately I have a representative taking this matter to government on my behalf. My only reason for asking about becoming VAT registered in Germany was due to be advised to do this by German customs myself, they have the portal you must use to submit and request for duty refund of which I am a registered user for however the option to request the refund is not available to me because I am not VAT registered in Germany, instead it has to be the recipient of the goods (who is based in Germany) who applies for the refund which had the recipient paid the duty would be correct but on this occasion I paid the duty because the goods sent were on a sale or return basis.

 

[Customs Geek]

Hi Debs

You have fallen foul of the way the legislation is drafted. It is EU law that the person named as the importer is the legal debtor. It is only the legal debtor who can reclaim import duty , the customs authorities really don’t care who actually pays. The payment part is a commercial decision.
For this reason the authorities won’t entertain a reclaim from someone not mentioned on the customs declaration.
We have equivalent rules here in the UK .

VAT rules are slightly different and VAT recovery is based on the importer being VAT registered and entitled to recover the import VAT paid. You also need to be making taxable supplies to get VAT registered in the first place.

Best of luck with your representations to Government. Do let us know how you get on.

 

[Debs Toohey]

Hi Debs

You have fallen foul of the way the legislation is drafted. It is EU law that the person named as the importer is the legal debtor. It is only the legal debtor who can reclaim import duty , the customs authorities really don’t care who actually pays. The payment part is a commercial decision.
For this reason the authorities won’t entertain a reclaim from someone not mentioned on the customs declaration.
We have equivalent rules here in the UK .

VAT rules are slightly different and VAT recovery is based on the importer being VAT registered and entitled to recover the import VAT paid. You also need to be making taxable supplies to get VAT registered in the first place.

Best of luck with your representations to Government. Do let us know how you get on.

Yup, thats what I figured Customs Geek and for sure will keep you posted although I do not hold out much hope in any immediate change but the representative I have is closely linked to DTI and his organisation UKFT provide valuable feedback from businesses like us to the Government - well worth the membership fee if anyone else is in the fashion and textile industry.