Section 2: Exemption from VAT and tax refunds

§ 5 VAT exemption on importation

(1) The following importations of goods are VAT exempt

1. goods mentioned in § 4 number 8 lit. e and number 17 lit. a, as well as in § 8 paragraph 1 numbers 1, 2 and 3;

2. goods mentioned in § 4 number 4 and number 8 lit. b and i, as well as in § 8 paragraph 2 numbers 1, 2 and 3 according to the conditions set out in these regulations;

3. goods which are used by the person liable for the import VAT for the execution of an intra-Community supply (§ 4 number 1 lit b, § 6a) directly after the importation; at the time of importation the person liable for the import VAT

   1. must provide his VAT identification number issued to him within the scope of this Act or the VAT identification number of his fiscal representative issued within the scope of this Act and

   2. the VAT identification number issued to the purchaser in another Member State, and

   3. must prove that the goods are designated for transport or dispatch into other Community Territory;

4. goods mentioned in Annex 1 which are, following the importation, to be used for the execution of VAT exempt transactions in accordance with § 4 number 4a sentence 1 lit. a sentence 1; the person liable for the import VAT must demonstrate that the conditions for the VAT exemption have been met;

5. goods mentioned in Annex 1, if the importation is connected to a supply resulting in the removal of the goods from a warehouse, within the meaning of § 4 number 4a sentence 1 lit. a sentence 2, and if the supplier or his engaged representative is liable for the import VAT; the person liable for the import VAT must demonstrate that the conditions for the VAT exemption have been met;

6. natural gas via the natural gas distribution system or of natural gas that is supplied from a gas tanker into the natural gas distribution system or an upstream gas distribution system, of electricity or of heat or cold air via the heating or cold air distribution system;

7. goods imported from a third country territory in shipments with a maximim value of Euro 150 for which the tax is declared under the special taxation procedure mentioned in § 18k and for which, in the declaration to release the goods into free circulation, the individual identification number of the supplier, or that of the agent acting on his behalf, issued by a Member State of the European Union in accordance with Article 369q the Council Directive 2006/112/EC of 28 November 2006 (OJ L 347 from 11 December 2006 p. 1) in the current applicable version, is stated;

8. goods imported by the European Union, the European Atomic Energy Community, the European Central Bank and the European Investment Bank as well as bodies set up by the European Union for which the Protocol (No 7) annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union on the privileges and immunities of the European Union (OJ C 202 from 7 June 2016, p. 266) is applicable namely within the limits and under the conditions laid down in this Protocol and the agreements for its implementation or the headquarters agreements;

9. goods imported by the European Commission as well as agencies and bodies established under Union law provided that the goods are imported in the execution of their tasks in order to respond to the COVID-19 pandemic. This does not apply for goods which are used by the European Commission or agencies or bodies established under Union law for the provision of supplies against consideration by them. If the preconditions cease to exist after the importation, the European Commission or agencies or bodies established under Union law are obliged to notify the customs authorities responsible for the respective importation within a month. In this case, the import VAT will be assessed based on the provisions applicable at the point of time when the preconditions have ceased to exist;

10. goods imported by the armed forces of other Member States for use or consumption by the armed forces, the civilian staff accompanying them or for supplying their messes or canteens and the armed forces are taking part in a defence effort carried out for the implementation of a Union activity under the common security and defence policy.

(2) The Federal Ministry of Finance may issue a directive which does not require the consent of the Federal Council stipulating exemption from VAT or tax reductions in order to facilitate the cross-border traffic of goods and to simplify the administrative procedures for goods

1. that do not or no longer form part of the sale of goods and the pricing thereof;

2. in small quantities or at a low value;

3. that were only exported temporarily without having lost their affiliation or close connection to their domestic economy;

4. that are imported into free trade zones under processing arrangements approved by the customs authorities;

5. that are only temporarily imported and are subsequently re-exported under customs control;

6. on which import VAT is not levied as a result of their intergovernmental practice;

7. that are imported on board a means of transport as provisions, fuel, propellants or lubricants, engineering oils or operating material;

8. that are neither designated for the retail sector nor for commercial application and with a total value no higher than the value stipulated in the legal acts of the Council of the European Union or the European Commission regarding the payment of customs duty at a flat rate, provided that the legitimate interests of the domestic economy are not thereby infringed upon and that no inappropriate tax advantages arise. The legal acts issued by the Council of the European Union or the European Commission must be considered.

(3) The Federal Ministry of Finance may issue a directive which does not require the consent of the Federal Council stipulating that, where the conditions set forth in the legal acts issued by the Council of the European Union or the European Commission are applied accordingly, the import VAT may be reimbursed or waived either in part or in full.