Germany Import Duty & VAT Calculator

How import duty and VAT work in Germany

Goods arriving in Germany from outside the EU face two charges: customs duty (an EU-wide tariff) and German import VAT (Einfuhrumsatzsteuer). They build on each other — duty is worked out first, then VAT is charged on the value including that duty. Get the order wrong and your numbers drift every time.

Customs value (the duty base)

The EU charges duty on the customs value, which under the transaction-value method is the price you pay for the goods plus transport, insurance, loading and handling to the point of entry into the EU — broadly a CIF figure.

So on FOB or EXW terms you add the international freight and insurance to reach the customs value; on CIF terms they're already inside the supplier's price. Costs after the EU border can be excluded if shown separately.

Customs duty rates (the EU Common Customs Tariff)

The duty rate depends on the commodity code under the EU Common Customs Tariff, the same across all 27 member states. Many goods are 0%, while clothing is often around 12% and footwear runs roughly 0%–17%. Check Access2Markets / TARIC for your exact code — and whether a trade agreement gives a 0% preferential rate (which needs valid proof of origin). The EU also applies anti-dumping duties on specific goods from specific origins; those stack on top, so verify them for your product and supplier.

Import VAT — charged on duty too

German import VAT is 19% at the standard rate (a reduced 7% applies to a few categories — see below), and it is not charged on the goods price alone. The VAT value is:

customs value + customs duty + incidental costs to the goods' first destination in Germany.

Because duty is already in the VAT base, you effectively pay VAT on the duty. On a €5,000 consignment with €650 of freight and insurance and €678 of duty, import VAT is charged on €6,328 — not on €5,000.

The reduced 7% rate applies to items such as books, newspapers and most foodstuffs. Note this is reduced, not zero — unlike the UK, which zero-rates books. So "19% on everything" is wrong; check your category.

Low-value rules — and a big 2026 change

Two thresholds have always been confused, and one of them is about to disappear:

1. Import VAT applies from the first euro. The old €22 VAT exemption was abolished on 1 July 2021. For B2C consignments of €150 or less, sellers can use the Import One-Stop Shop (IOSS) to charge German VAT at checkout instead of it being collected at the border — but the VAT is due either way.

2. The €150 customs-duty relief is being removed. Today, goods with an intrinsic (goods-only) value of €150 or less are free of customs duty. But from 1 July 2026 the EU removes that relief: sub-€150 e-commerce parcels instead face an interim flat customs duty of €3 per item (running 2026–2028, until normal tariffs apply via the new EU customs data hub). If you're modelling low-value parcels, treat the €150 duty exemption as expiring and verify the current rule.

Above €150, full customs duty and import VAT apply regardless.

Other charges (no government processing fee)

Germany has no government import-processing fee like the US MPF. What you'll usually see is a private clearance or handling fee from your courier or customs broker (for example Deutsche Post/DHL's handling charge) for clearing the goods and fronting the duty and VAT. We treat that as an editable estimate, since it varies by carrier and isn't set by customs.

Incoterms: what your supplier price already includes

The Incoterm on your invoice decides what's already inside the number, and therefore what you add to reach the EU customs value. Get it wrong and you'll either double-count freight or under-budget your landed cost.

EXW (Ex Works). Goods only, at the supplier's premises. You add origin handling, export clearance, foreign inland freight, and international freight and insurance to the EU.

FOB / FCA (Free On Board / Free Carrier). The supplier has cleared the goods for export and handed them over at the origin port or carrier. You add international freight and insurance — and because the EU customs value is CIF-based, those are exactly the costs you add to reach the duty base.

CFR / CPT (Cost & Freight / Carriage Paid To). International carriage is already in the price; you still add insurance.

CIF / CIP (Cost, Insurance & Freight / Carriage & Insurance Paid). Freight and insurance to the EU are both included — that figure is essentially your customs value before duty.

DAP / DDP (Delivered At Place / Delivered Duty Paid). Under DDP the seller has paid the German duty and import VAT and delivered to your door. Under DAP the seller delivers but you still owe the duty and VAT.

The Germany-specific point

For Germany, duty and import VAT both build on the CIF-style customs value — international freight and insurance to the EU border are included in the base — and then VAT is charged on that customs value plus the duty. So freight to the border sits inside the duty base and inside the VAT base, and the VAT base also contains the duty. Pick the Incoterm that matches your invoice and the calculator splits it correctly.

Worked example: €5,000 shipment of clothing

Numbers make the order of operations obvious. Take a real-world consignment: €5,000 of clothing, bought FOB, with €600 of ocean freight and €50 of insurance to reach a German port. Assume a 12% duty rate (typical for apparel under the EU Common Customs Tariff) and the standard 19% German VAT.

The trap is taxing the goods price alone. Germany doesn't. Duty is charged on the CIF customs value, then VAT is charged on the customs value plus the duty. Here's how it flows:

Line item	Basis	Amount (EUR)
Goods (FOB)	supplier price	5,000
International freight (ocean)		600
Insurance		50
Customs value (CIF)	goods + freight + insurance to EU	5,650
Duty @ 12%	12% of customs value	678
Import VAT base	customs value + duty	6,328
Import VAT @ 19%	19% of the VAT base	1,202.32

Reading it down: the customs value is €5,650, not €5,000, because freight and insurance to the EU are included. Duty of €678 is charged on that. Then import VAT is charged on €6,328 — the customs value plus the duty — giving €1,202.32. That's the compounding effect: you pay 19% VAT on the €678 of duty as well as on the goods and freight.

Add it all up — goods, freight, insurance, duty and VAT:

5,000 + 600 + 50 + 678 + 1,202.32 = €7,530.32.

The duty and VAT together come to about €1,880.32 on €5,000 of goods — roughly 38% on top of the goods value. That's the number to build into your pricing, not the headline 12% duty rate. If your goods are books or food, the VAT drops to the reduced 7%; if they're subject to an EU anti-dumping duty, add that to the duty rate. A courier or broker clearance fee, if you use one, sits on top and is private, not government-set.