Learn about cross-border ecommerce, shipping, and importing.
If you are looking to grow your ecommerce business into Germany , you’ve come to the right place. Keep reading to learn everything you need to know about selling goods into Germany.
The landed cost for a cross-border transaction includes all duties, taxes, and fees associated with the purchase. This includes:
Product price
Shipping
Duties
Taxes
Fees (currency conversion, carrier, broker, customs, or government fees)
German de minimis, tax, and duty
Term to know
CIF: CIF (cost, insurance, freight) is a method for calculating import taxes where the tax is calculated on the cost of the order, plus the cost of freight, insurance, and seller's commission.
FOB: FOB (freight on board or free on board) is a valuation method for calculating import taxes or duties where the fees are calculated only on the cost of the goods sold. FOB is not calculated on the shipping, duty, insurance, etc.
Duty and tax will be charged only on imports into Germany where the total FOB value of the import exceeds Germany’s minimum value threshold (de minimis), which is a duty de minimis of 150 EUR and a tax de minimis of 0 EUR. Anything under the duty de minimis value will be a duty-free import, but because the tax de minimis is zero, every import is subject to tax.
Value-added tax (VAT)
Average VAT rate: 19%
Reduced rate: 7%
Applied to the CIF value of the order
VAT - Value-added tax
Import VAT is charged on the CIF value of the order. VAT is charged at the standard rate of 19%, but certain products, such as food, books, hotel accommodations, cultural services, and more, receive a reduced rate of 7%. The EU employs IOSS (Import-One-Stop-Shop) as their method for collecting VAT.
Average duty rate
Average duty rate: 4.2%
Applied to the CIF value of the order
Import duty
Like VAT, duty is charged on the CIF value of the order. The duty ranges from 0-17%, with an average rate of 4.2%.
Landed cost examples
Below are sample landed cost breakdowns for Germany (one below and one above the duty de minimis threshold) calculated using Zonos Quoter. Since the tax de minimis is 0 EUR, tax will always apply:
Landed cost for a shipment to Germany below the duty de minimis value:
Landed cost for shipment to Germany above the duty and tax de minimis values:
Trade agreements
Germany, being a member of the EU, has at least 60 trade agreements. These trade agreements offer a zero or highly discounted duty rate for goods made in a participating country.
Germany participates in the European Union's Common Customs Tariff, which applies preferential rates to imports from other countries with which the EU has signed agreements.
Germany is a member of the World Trade Organization
Germany is a member of the World Trade Organization (WTO). Therefore, Germany must abide by the most-favored-nation (MFN) clause, which requires a country to provide any concessions, privileges, or immunities granted to one nation in a trade agreement to all other WTO member countries. For example, if a country reduces duties by 10% for one country, the MFN clause states that all WTO members will have their duties cut by 10% into that country.
ICS2 is a cargo information system aimed at screening shipments for security and safety prior to their arrival in, or transit through, the European Union as well as the United Kingdom.
You need to ensure that you are providing the carriers with good (not vague) package descriptions when you're shipping a package to the EU.
All air carriers, freight forwarders, express courier services, and postal operators transporting goods to or through the European Union by air must digitally submit advance cargo information to the EU's new customs pre-arrival security and safety program.
Depending on the courier, additional shipping fees may include:
Restricted items are different from prohibited items. Prohibited items are not allowed to be imported into a country at all. Restricted items are not allowed to be imported into a country unless the importer has approval or a special license that allows them. Controlled goods have military or national security significance.
Prohibited items:
All products containing the biocide dimethyl fumarate (DMF)
Certain carcinogenic substances
Certain chemicals subject to the Chemical Weapons Convention (CWC)
Certain pesticides subject to the Rotterdam Convention
The Combined Nomenclature (CN) is used to classify most goods when they are declared to customs in the EU. The CN document is updated and published every year, and the latest version can be found on the European Commission's website.
Economic Operators Registration and Identification number (EORI) is an identification number for the importer. Generally, a business needs to provide an EORI (for business-to-business shipments), but a business-to-consumer shipment does not need an EORI upon import.
Rules and VAT rates
Each country in the EU applies the standard VAT rules differently, and each country has different VAT rates.
There are several different shipping options to choose from in order to remain compliant with the EU’s VAT scheme. Zonos' EU VAT guide has further information about your options.
Everyone who ships to Europe and the UK is impacted, e.g., online retailers, manufacturers, and exporters, must ensure they have accurate information regarding the recipient and package contents before they send the shipment through the carrier or postal operator to the EU or the UK.
Germany
Germany country guide
Learn about cross-border ecommerce, shipping, and importing.
If you are looking to grow your ecommerce business into Germany
, you’ve come to the right place. Keep reading to learn everything you need to know about selling goods into Germany.
Ease of importing goods score: B
Ease of doing business 5/5
Landed cost fairness 1/5
Flexibility of legal regulations 5/5
Availability and accessibility of shipping 5/5
Accessibility and variety of payment methods 5/5
Market opportunity 5/5
Key stats for Germany
Landed cost for Germany
The landed cost for a cross-border transaction includes all duties, taxes, and fees associated with the purchase. This includes:
German de minimis, tax, and duty
Further explanation of duty, tax, and de minimis is provided below
Duty and tax de minimis
Based on the FOB value of the order
De minimis value
Duty and tax will be charged only on imports into Germany where the total FOB value of the import exceeds Germany’s minimum value threshold (de minimis), which is a duty de minimis of 150 EUR and a tax de minimis of 0 EUR. Anything under the duty de minimis value will be a duty-free import, but because the tax de minimis is zero, every import is subject to tax.
Value-added tax (VAT)
Applied to the CIF value of the order
VAT - Value-added tax
Import VAT is charged on the CIF value of the order. VAT is charged at the standard rate of 19%, but certain products, such as food, books, hotel accommodations, cultural services, and more, receive a reduced rate of 7%. The EU employs IOSS (Import-One-Stop-Shop) as their method for collecting VAT.
Average duty rate
Applied to the CIF value of the order
Import duty
Like VAT, duty is charged on the CIF value of the order. The duty ranges from 0-17%, with an average rate of 4.2%.
Landed cost examples
Below are sample landed cost breakdowns for Germany (one below and one above the duty de minimis threshold) calculated using Zonos Quoter. Since the tax de minimis is 0 EUR, tax will always apply:
Landed cost for a shipment to Germany below the duty de minimis value:
Landed cost for shipment to Germany above the duty and tax de minimis values:
Trade agreements
Germany, being a member of the EU, has at least 60 trade agreements. These trade agreements offer a zero or highly discounted duty rate for goods made in a participating country.
Germany participates in the European Union's Common Customs Tariff, which applies preferential rates to imports from other countries with which the EU has signed agreements.
Germany is a member of the World Trade Organization
Germany is a member of the World Trade Organization (WTO). Therefore, Germany must abide by the most-favored-nation (MFN) clause, which requires a country to provide any concessions, privileges, or immunities granted to one nation in a trade agreement to all other WTO member countries. For example, if a country reduces duties by 10% for one country, the MFN clause states that all WTO members will have their duties cut by 10% into that country.
Customs resources
Germany’s Customs authority
European Commissions - Customs
Germany Customs Service
Customs refund in Germany
Customs refund in Germany
Shipping and compliance
Top courier services:
ICS2 is a cargo information system aimed at screening shipments for security and safety prior to their arrival in, or transit through, the European Union as well as the United Kingdom.
Depending on the courier, additional shipping fees may include:
Documentation and paperwork
Always required:
Sometimes required:
Economic Operators Registration Identification (EORI)
Tax ID number
Germany Power of Attorney (POA) form needed for clearance
Restricted, prohibited, and controlled items
Government agencies regulate imports.
Restricted items are different from prohibited items. Prohibited items are not allowed to be imported into a country at all. Restricted items are not allowed to be imported into a country unless the importer has approval or a special license that allows them. Controlled goods have military or national security significance.
Prohibited items:
Restricted items:
Legal regulations for businesses
Classification
The Combined Nomenclature (CN) is used to classify most goods when they are declared to customs in the EU. The CN document is updated and published every year, and the latest version can be found on the European Commission's website.
Customs declarations
The Single Administrative Document (SAD) and Summary declaration are documents used for customs declarations.
Identification number
Economic Operators Registration and Identification number (EORI) is an identification number for the importer. Generally, a business needs to provide an EORI (for business-to-business shipments), but a business-to-consumer shipment does not need an EORI upon import.
Rules and VAT rates
Each country in the EU applies the standard VAT rules differently, and each country has different VAT rates.
Tips for exporting from Germany
There are rules and procedures that EU exporters need to be aware of prior to exportation.
Frequently asked questions
How do I comply with the EU VAT scheme?
There are several different shipping options to choose from in order to remain compliant with the EU’s VAT scheme. Zonos' EU VAT guide has further information about your options.
What does ICS2 require retailers to do?
Everyone who ships to Europe and the UK is impacted, e.g., online retailers, manufacturers, and exporters, must ensure they have accurate information regarding the recipient and package contents before they send the shipment through the carrier or postal operator to the EU or the UK.
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