On 1 January 2026, the new sec. 21b of the German VAT Act entered into force. It regulates where import VAT is incurred when using the centralised clearance for imports. In this case, customs duties and import VAT are often incurred in different Member States. Under certain circumstances, an additional VAT return for import VAT may be required in addition to the customs declaration.

The VAT treatment of construction and renovation of real estate is complex – particularly when financing is provided through grants or when there are activities that consistently operate at a deficit. The Federal Fiscal Court (judgment of July 9, 2025, XI R 32/22) clarifies: The decisive factor for input VAT deduction is the taxable person’s objectively documented intention of use, not the type of financing or profit-making. In cases of mixed building use, an appropriate allocation must be made. Complete documentation of the intended use is essential.