Germany

The Federal Republic of Germany is the largest economy in Europe, the 3rd largest economy in the world (by GDP, nominal) and has one of the highest income per capita levels globally. It boasts a population of about 84 million, with an Organisation for Economic Co-operation and Development (OECD) comparative price level of around 116, meaning Germans pay on average 16% more (domestically) than Americans pay for the same product – making Germany an attractive cross-border ecommerce destination.

Key info

• Country code (ISO 3166-1 alpha-2): DE
• Country code top-level domain (ccTLD): .de
• Currency (ISO4217): Euro EUR
• World Trade Organization (WTO) Status: Member

Duty information

Germany is part of the European Union Customs Union (EUCU), meaning goods imported from outside the EU are subject to the Common External Tariff (CET).

• The Most Favored Nation (MFN) ad valorem duty rates range typically from 0% to 17%, with some exceptions (e.g. agricultural products, textiles, and footwear may face higher tariffs).
• Many categories of goods are duty-free.
• Customs duty is calculated on the CIF value (Cost, Insurance, and Freight).

Sales tax

Germany applies Value Added Tax (VAT), known locally as Umsatzsteuer (USt) or Mehrwertsteuer (MwSt):

• Standard VAT rate: 19%
• Reduced VAT rate: 7% (applied to certain goods and services such as books, some food products, and medical supplies).
• Some goods and services are exempt, including certain financial services, medical services, and exports.

VAT on imports is calculated on the the value of goods, transport, insurance, duty and additional taxes.

Additional taxes & charges

• Excise duties apply to alcohol, tobacco, and energy products (e.g. fuel, electricity).
• Anti-dumping duty (ADD) or countervailing duties (CVD) may apply on certain imports depending on trade defense measures.
• Environmental charges (e.g. packaging laws, recycling contributions) can apply to companies selling into Germany.

De minimis thresholds

• Customs duty de minimis: Goods valued up to EUR 150 are exempt from customs duties (but not from VAT).
• VAT de minimis: There is no VAT de minimis threshold – all goods imported into Germany are subject to VAT, regardless of value.
  • However, gifts from private individuals outside the EU may be VAT-free up to EUR 45, subject to conditions.

Prohibited & restricted goods

Germany follows EU-wide import restrictions enforced by German Customs (Zoll). Prohibited or restricted goods include:

• Firearms, ammunition, and explosives (without permits)
• Narcotics and certain controlled substances
• Counterfeit goods
• Endangered species (flora and fauna) and products made from them (CITES restrictions)
• Certain agricultural products and plants (subject to phytosanitary checks)
• Hazardous chemicals and asbestos
• Specific cultural property and antiques (subject to export/import control)

An extensive list of prohibited and restricted items can be found on the German Customs (Zoll) website.