Germany Import VAT and Duty from China: Rates, Thresholds & Calculation in 2026
Quick Answer: How Are Germany Import Duty and VAT Calculated?
Import duty is calculated as a percentage of the customs value, determined by the HS/TARIC code of your product. Most goods from China face duties ranging from 0% to 12%, depending on the product category. Import VAT is then calculated on the customs value plus duty at the standard rate of 19% (or reduced 7% for certain goods).
Since July 2026, the €150 customs duty exemption threshold no longer applies to most goods imported from non-EU countries including China. All shipments are now subject to duty assessment regardless of value. However, goods valued under €150 may still qualify for simplified clearance procedures in some cases.
Germany Import Duty Rate
Import duty rates depend on the TARIC (Integrated Tariff of the European Union) code assigned to your product. This is an 8-10 digit code based on the international Harmonized System (HS), extended with EU-specific subdivisions.
Most consumer goods and industrial products imported from China face duty rates typically ranging from 0% to 12%. Some specific product categories (textiles, certain electronics, steel products) may face anti-dumping duties or safeguard measures that significantly increase the applicable rate.
The duty is calculated as follows:
Germany Import VAT
Import VAT is charged on the customs value plus any import duties. Germany applies the standard VAT rate of 19% to most imports. A reduced rate of 7% applies to certain goods including books, newspapers, some food products, and cultural items.
Example: Goods with customs value of €1,000 and a 5% duty rate:
- Duty: €1,000 × 5% = €50
- VAT basis: €1,000 + €50 = €1,050
- VAT: €1,050 × 19% = €199.50
- Total customs charges: €249.50
€150 Threshold: What Changed in July 2026
Prior to July 2026, imports valued under €150 were generally exempt from customs duty under the small consignment regime. This changed with the EU's customs reform implementation.
The €150 duty exemption threshold no longer applies to most goods imported from non-EU countries including China. All commercial shipments are now subject to standard duty assessment. However, shipments valued under €150 may still benefit from simplified customs procedures that reduce documentation requirements.
Key points for importers:
- All commercial imports from China now require proper TARIC classification
- Duty rates apply regardless of shipment value
- Simplified clearance may be available for low-value shipments but duty still applies
- VAT always applies to commercial imports, even for very small values
Incoterms and Customs Value
The Incoterm used in your purchase agreement directly affects how customs value is calculated. Different Incoterms include or exclude various cost elements:
| Incoterm | Included in Customs Value | Importer Pays |
|---|---|---|
| EXW (Ex Works) | Factory price only. You pay freight, insurance, and origin charges separately. | Freight, origin handling, insurance, duty, VAT |
| FOB (Free on Board) | Product price + origin charges up to port of loading. | Freight, insurance, duty, VAT |
| CFR (Cost and Freight) | Product price + freight to destination port. | Insurance, duty, VAT, destination handling |
| CIF (Cost, Insurance, Freight) | Product price + freight + insurance to destination port. | Duty, VAT, destination handling |
| DDP (Delivered Duty Paid) | Everything including duty and VAT (seller arranged). | Nothing at customs (seller paid) |
DDP (Delivered Duty Paid) terms simplify customs cost planning significantly. The seller (or their forwarder) pays all import duties and VAT at the time of clearance, so there are no unexpected customs bills after delivery.
HS and TARIC Classification
Correct product classification under the TARIC system is the importer's legal responsibility. The first 6 digits represent the international HS code, while digits 7-8 identify EU-specific subdivisions, and digits 9-10 may represent additional national measures.
Common examples for goods imported from China:
Electronics (HS 85)
Typical duty rates: 0% - 14%. Many electronic components face 0%, while finished consumer electronics typically face 4-14% depending on product type.
Textiles (HS 61-62)
Typical duty rates: 8% - 12%. Clothing items typically face 12% duty. Anti-dumping duties may apply to certain textile categories.
Machinery (HS 84)
Typical duty rates: 0% - 4%. Most machinery and mechanical appliances face 0% or low single-digit duties.
Furniture (HS 94)
Typical duty rates: 0% - 8%. Most wooden and metal furniture faces 0-4%.
VAT Recovery for Registered Businesses
German VAT-registered businesses can generally recover the import VAT paid as input VAT, provided the goods are used for taxable business purposes. This is claimed through the regular VAT return.
VAT Registration Required
You need a German VAT number (VAT-ID) to recover import VAT. EU VAT registration is required if you are establishing a taxable presence in Germany.
Input VAT Recovery
Import VAT paid can be recovered as input VAT on your periodic VAT return, offset against output VAT charged on sales.
ICS2 Requirement
Since March 2024, the Import Control System 2 (ICS2) requires advance safety and security data for all goods entering the EU.
Post-Clearance Adjustment
If the final customs value differs from the provisional declaration, you may need to file a post-clearance adjustment claim.
Who Is Responsible for What
| Item | Who Is Responsible |
|---|---|
| HS/TARIC classification | Importer |
| Customs value declaration | Importer or representative |
| Duty payment | Importer (or seller under DDP) |
| VAT payment | Importer (or seller under DDP) |
| VAT recovery | Importer (if VAT registered) |
| EORI registration | Importer |
| ICS2 data submission | Carrier or representative |